Thank you, Mr. Chair, and thank you to our witnesses for being with us today and answering our questions.
Mr. Rheault, you described Canada's airline sector as “dynamic and competitive”. It seems like a message that is in stark contrast to the one that we heard at our last meeting, when we heard from researchers and academics who work in this space and look at the structure of the air travel sector.
One of the questions that came up was one I thought was really good. Our chair, right at the end of the meeting, essentially asked this: If we were to take up this recommendation to reduce fees and charges and make it cheaper to operate an airline in Canada, what would prevent airlines from simply increasing their prices, charging the same amount to passengers and taking that as profit? The answer we got back was nothing, essentially. “Welcome to capitalism” was basically the answer we got.
The question for you would be this: What would ensure that those savings would be passed on to customers?
I would argue that we don't have a very competitive airline industry. Certainly, the communities I represent don't see that competition translating into lower prices.
Right now, both Air Canada and WestJet are posting profits. I think Moody's projects that those profits are going to be even greater in 2024. It seems like you're doing fine under the current regulatory, tax and fee structure.
Why do those need to be lower?