A plane takes off from Vancouver International Airport in Richmond, B.C. On Thursday, the Competition Bureau recommended Canada should allow foreign-owned airlines to fly domestic routes.JONATHAN HAYWARD/The Canadian Press
Ajay Virmani CM is the founder and executive chair of Cargojet.
Thursday’s recommendations from the Competition Bureau to open Canada’s skies to foreign airlines may sound like a pro-consumer move. But beneath the surface, it risks undermining our aviation industry, threatening Canadian jobs and handing over control of a vital sector – all without getting a single thing in return.
The bureau suggests allowing foreign carriers to fly domestic routes in Canada – a move known as “cabotage” – and phasing out foreign ownership restrictions entirely. If adopted, these changes would fundamentally alter the aviation landscape in Canada. And not for the better.
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Let’s start with the obvious: There is no reciprocal access. The foreign carriers most likely to cash in on this opportunity will be American ones, because of geography. But the United States, our closest trading partner, does not allow foreign carriers to operate domestic routes. It guards that privilege closely – as do many other major nations. Why, then, should Canada unilaterally open our skies? Competition is healthy – but only when it’s fair.
We cannot be the only country willing to give away our market while others protect theirs. That’s not strategy – that’s surrender.
Canada is a country of extremes. We are the second-largest nation by land mass, but with a population spread thinly across vast geography. Air travel isn’t just a convenience – it’s a necessity. But let’s be blunt: Canada is not big enough to support even three major airlines as the past two decades have shown. More than 15 carriers – from Jetsgo to Lynx – have gone out of business trying.
Foreign airlines, with deep pockets and no long-term obligation to our infrastructure, will swoop in to cherry-pick profitable urban routes – Toronto to Vancouver, Montreal to Calgary – and leave Canadian carriers to subsidize unprofitable regional and remote routes. When the local players fold, who will serve the North? Who will fly to the small towns? Prices will go up, and service will disappear.
The impact won’t just be felt in boardrooms – it will hit everyday Canadians across the aviation work force. We’re talking about pilots, engineers, mechanics, technology professionals, baggage handlers, call centre teams and support staff. Foreign carriers have no incentive to hire in Canada beyond what’s absolutely necessary. Opening the door to foreign dominance means giving up opportunity, experience and expertise – and leaving a skilled Canadian work force behind.
In today’s geopolitical climate, the last thing we should do is hand over our aviation sector to foreign ownership. Aviation isn’t just another business – it’s a strategic asset. In emergencies, natural disasters and national defence, a strong domestic aviation backbone matters. Foreign ownership comes with no such loyalty.
If the government truly wants to improve Canadian aviation, it should start with what’s in its control: modernize our airports, lower sky-high airport rents and fees, invest in regional infrastructure and overhaul NAV Canada, which operates our civil air navigation system. These structural issues are what make flying in Canada expensive – not a lack of foreign players.
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Opening the door to foreign carriers without fixing the broken foundation is like inviting guests into a crumbling house and hoping they’ll renovate it for you.
The promise of cheaper fares is always tempting. But the reality is, foreign carriers will skim the cream off the top – and leave Canadian operators to handle the rest. Once Canadian carriers are weakened or gone, what leverage will we have left? The decisions will be made in boardrooms far away, with no regard for Canadian jobs, service standards or national resilience.
We need smart competition, not blind deregulation. We need policy that supports homegrown carriers and gives them the tools to grow and compete globally. And we need to recognize that our aviation sector isn’t just about profits – it’s about sovereignty, accessibility and nation-building.
Canada is not for sale – and neither are our skies. Let’s not let short-term thinking cost us our long-term future.