In this policy vacuum, therefore, we propose six radical changes—three to help nascent competition and competitors, and three to frame the conversation about regulation and competition and provide some dim hope for a future competitive market.
First, the Government of Canada should support competitive entry with a lending bank of 10 government-owned aircraft of various sizes leased at cost, available only to competitors and upon such conditions as serving certain routes at certain frequencies and with exit barriers.
Second, airports should reserve time and gate slots for new entrants.
Third, there should be enforcement of abuse of dominance rules on route-matching and price-cutting, and price floors should be set for incumbents with entry conditions and exit conditions.
Fourth, the approval of airline merger reviews should be flipped. The transport minister can advise, but the Competition Bureau or the Competition Tribunal should decide.
Fifth, Transport Canada should develop specific air competition policy, not the present vague air marketplace framework, in consultation with the Competition Bureau.
Finally, the Competition Bureau should do a market study on airline travel within Canada. We are pleased that they have just announced that today.