Latest news with #MichaelPorter
Vancouver Sun
17 hours ago
- Business
- Vancouver Sun
Allow total foreign ownership of domestic-only Canadian airlines: Competition Bureau report
Canada should allow up to 100 per cent foreign ownership of domestic-only airlines in a bid to lower fares and boost flight options, the Competition Bureau says in a new report highlighting the country's 'highly concentrated' aviation industry. In a market study released Thursday, the watchdog suggested a new class of airline that operates only in Canada but has owners outside its borders, opening the gate to global expertise — and cash. The current foreign ownership cap sits at 49 per cent, with sovereignty and national security often cited as the reason. In addition, no more than 25 per cent of a domestic carrier can be owned by any one foreign entity, a proportion the Competition Bureau proposed raising to nearly half. Start your day with a roundup of B.C.-focused news and opinion. By signing up you consent to receive the above newsletter from Postmedia Network Inc. A welcome email is on its way. If you don't see it, please check your junk folder. The next issue of Sunrise will soon be in your inbox. Please try again Interested in more newsletters? Browse here. 'Allowing more foreign investment in Canadian airlines improves access to capital, drives growth and promotes competition,' the report said, pointing to Australia and New Zealand as places that permit full outsider ownership of in-country carriers. 'As economist Michael Porter famously put it, unless a firm is forced to compete at home, it will usually lose its competitiveness abroad,' Brad Callaghan, an associate deputy commissioner at the Competition Bureau, said during a press briefing. Weak competition in the airline industry remains a big hurdle to lower prices and better service across the country, and remote communities especially, the report found. 'Competition in Canada's airline sector has struggled to take off,' it said, noting consumers' dissatisfaction with ticket prices, service quality and range of flight choice. Air Canada and WestJet together account for between half and three-quarters of all domestic passengers at major airports, according to the study. Though competition improved between 2019 and 2023 with the arrival of Flair Airlines and the expansion of Porter Airlines, market concentration remains 'extremely high' and competition from new entrants fragile, the bureau said. 'Many Canadians report that international flights are often cheaper than flights within Canada' — partly due to 'cabotage' rules prohibiting point-to-point trips within Canada by foreign airlines — it noted. The watchdog proposed working with other countries to remove foreign competition restrictions in international agreements. The National Airlines Council of Canada, which represents the country's largest carriers, took issue with that, as did airports. 'Cabotage is not the answer to competition in a country as sparse and large as Canada. A foreign carrier is not going to service our smallest towns and thin volume routes,' said Monette Pasher, president of the Canadian Airports Council, in a release. Some experts agreed, arguing that opening the hatch to foreign operators would invite more competition on big routes but do little for thinly served remote communities or even small cities. 'Would I fly into Yarmouth? Would I fly into Prince Albert? Would I fly into Whitehorse? No, not a chance. There's not enough traffic there,' said John Gradek, who teaches aviation management at McGill University. 'They want the low-hanging fruit … Ottawa to Montreal, Toronto to Calgary, Edmonton to Vancouver, because that's where all the money is.' Gradek said greater access to the Canadian market should come with conditions, such as a commitment to fly certain regional routes — and reciprocal access to markets in those airlines' home countries. Direct government support akin to a per-passenger subsidy on those far-flung routes is another option, said Gabor Lukacs, president of the Air Passenger Rights advocacy group. Western University professor Geraint Harvey warned about 'dysfunctional outcomes' that could arise from new players, especially state-owned carriers like Qatar Airways and Emirates that enjoy hefty subsidies. 'They can hollow out the market — they can dominate certain routes by offering lower fares,' he said, noting that more competition could ultimately result in less, if domestic airlines are elbowed out of the market. The report recommended a basket of reforms that include reviewing the airport funding model, enhancing the role of smaller airports and shoring up service to remote communities, particularly in the North. Currently, airport infrastructure costs fall largely on travellers under a user-pay model. Extra charges such as airport fees, fuel taxes and security and navigation charges comprised 30 cents of every dollar that passengers paid for tickets in 2023 compared with 25 cents in 2019, the study said. 'They are currently biased against smaller airlines,' said Keldon Bester, executive director of the Canadian Anti-Monopoly Project, stressing that high fees put otherwise cheap flights out of reach for demographics that discount carriers rely on. Air Canada spokesman Peter Fitzpatrick said the trend 'highlights how high government fees and charges raise airfares in Canada, hurting consumers and the competitiveness of our industry.' The country's largest airline has said Canada remains at least as competitive as markets such as the United States and European Union and that the share of domestic passengers on markets served by three or more carriers has shot up over the past decade _ though the number of routes has gone down. Over the past 20 months, four low-cost carriers have disappeared from the skies, as Lynx Air and Canada Jetlines shut down and WestJet folded subsidiary Swoop and the recently acquired Sunwing Airlines into its main-line service. Canada is a noted graveyard for budget carriers. Six foundered here between 1995 and 2015: Greyhound Air, Roots Air, Air Canada's Zip, Jetsgo, Zoom Airlines and CanJet. While the country's biggest cities remain amply served, smaller destinations have fewer options, which can also result in higher prices and, when things go awry, stranded passengers. The Calgary-Saskatoon route saw flights fall 39 per cent to 412 last month compared with 673 in May 2019, now that the route between Alberta and Saskatchewan's two biggest cities is served with non-stop flights by only WestJet, according to aviation data firm Cirium. Air Canada pulled out of the route over two years ago. The report noted that routes served by just one airline tended to be more expensive. 'Our research shows that when just one new competitor flies on a route between two cities, airfares go down by nine per cent on average,' the report said. The report also proposed a working group to ramp up service to the North, where air transportation is an 'essential lifeline, even for residents who never fly' but whose food and medicine arrive by plane. It further called for an end to the transport minister's power to green-light mergers and acquisitions deemed anticompetitive by the Competition Bureau. And it urged industry-wide publication of data on delays and cancellations to help consumers make informed choices, on par with the United States and United Kingdom. Our website is the place for the latest breaking news, exclusive scoops, longreads and provocative commentary. Please bookmark and sign up for our daily newsletter, Posted, here .
Edmonton Journal
17 hours ago
- Business
- Edmonton Journal
Allow total foreign ownership of domestic-only Canadian airlines: Competition Bureau report
Article content Canada should allow up to 100 per cent foreign ownership of domestic-only airlines in a bid to lower fares and boost flight options, the Competition Bureau says in a new report highlighting the country's 'highly concentrated' aviation industry. In a market study released Thursday, the watchdog suggested a new class of airline that operates only in Canada but has owners outside its borders, opening the gate to global expertise — and cash. Article content The current foreign ownership cap sits at 49 per cent, with sovereignty and national security often cited as the reason. In addition, no more than 25 per cent of a domestic carrier can be owned by any one foreign entity, a proportion the Competition Bureau proposed raising to nearly half. 'Allowing more foreign investment in Canadian airlines improves access to capital, drives growth and promotes competition,' the report said, pointing to Australia and New Zealand as places that permit full outsider ownership of in-country carriers. 'As economist Michael Porter famously put it, unless a firm is forced to compete at home, it will usually lose its competitiveness abroad,' Brad Callaghan, an associate deputy commissioner at the Competition Bureau, said during a press briefing. Weak competition in the airline industry remains a big hurdle to lower prices and better service across the country, and remote communities especially, the report found. Article content 'Competition in Canada's airline sector has struggled to take off,' it said, noting consumers' dissatisfaction with ticket prices, service quality and range of flight choice. Air Canada and WestJet together account for between half and three-quarters of all domestic passengers at major airports, according to the study. Though competition improved between 2019 and 2023 with the arrival of Flair Airlines and the expansion of Porter Airlines, market concentration remains 'extremely high' and competition from new entrants fragile, the bureau said. 'Many Canadians report that international flights are often cheaper than flights within Canada' — partly due to 'cabotage' rules prohibiting point-to-point trips within Canada by foreign airlines — it noted. The watchdog proposed working with other countries to remove foreign competition restrictions in international agreements. Article content The National Airlines Council of Canada, which represents the country's largest carriers, took issue with that, as did airports. 'Cabotage is not the answer to competition in a country as sparse and large as Canada. A foreign carrier is not going to service our smallest towns and thin volume routes,' said Monette Pasher, president of the Canadian Airports Council, in a release. Some experts agreed, arguing that opening the hatch to foreign operators would invite more competition on big routes but do little for thinly served remote communities or even small cities. 'Would I fly into Yarmouth? Would I fly into Prince Albert? Would I fly into Whitehorse? No, not a chance. There's not enough traffic there,' said John Gradek, who teaches aviation management at McGill University. 'They want the low-hanging fruit … Ottawa to Montreal, Toronto to Calgary, Edmonton to Vancouver, because that's where all the money is.' Article content Gradek said greater access to the Canadian market should come with conditions, such as a commitment to fly certain regional routes — and reciprocal access to markets in those airlines' home countries. Direct government support akin to a per-passenger subsidy on those far-flung routes is another option, said Gabor Lukacs, president of the Air Passenger Rights advocacy group. Western University professor Geraint Harvey warned about 'dysfunctional outcomes' that could arise from new players, especially state-owned carriers like Qatar Airways and Emirates that enjoy hefty subsidies. 'They can hollow out the market — they can dominate certain routes by offering lower fares,' he said, noting that more competition could ultimately result in less, if domestic airlines are elbowed out of the market. The report recommended a basket of reforms that include reviewing the airport funding model, enhancing the role of smaller airports and shoring up service to remote communities, particularly in the North. Article content Currently, airport infrastructure costs fall largely on travellers under a user-pay model. Extra charges such as airport fees, fuel taxes and security and navigation charges comprised 30 cents of every dollar that passengers paid for tickets in 2023 compared with 25 cents in 2019, the study said. 'They are currently biased against smaller airlines,' said Keldon Bester, executive director of the Canadian Anti-Monopoly Project, stressing that high fees put otherwise cheap flights out of reach for demographics that discount carriers rely on. Air Canada spokesman Peter Fitzpatrick said the trend 'highlights how high government fees and charges raise airfares in Canada, hurting consumers and the competitiveness of our industry.' The country's largest airline has said Canada remains at least as competitive as markets such as the United States and European Union and that the share of domestic passengers on markets served by three or more carriers has shot up over the past decade _ though the number of routes has gone down. Article content Over the past 20 months, four low-cost carriers have disappeared from the skies, as Lynx Air and Canada Jetlines shut down and WestJet folded subsidiary Swoop and the recently acquired Sunwing Airlines into its main-line service. Canada is a noted graveyard for budget carriers. Six foundered here between 1995 and 2015: Greyhound Air, Roots Air, Air Canada's Zip, Jetsgo, Zoom Airlines and CanJet. While the country's biggest cities remain amply served, smaller destinations have fewer options, which can also result in higher prices and, when things go awry, stranded passengers. The Calgary-Saskatoon route saw flights fall 39 per cent to 412 last month compared with 673 in May 2019, now that the route between Alberta and Saskatchewan's two biggest cities is served with non-stop flights by only WestJet, according to aviation data firm Cirium. Air Canada pulled out of the route over two years ago. Article content The report noted that routes served by just one airline tended to be more expensive. 'Our research shows that when just one new competitor flies on a route between two cities, airfares go down by nine per cent on average,' the report said. The report also proposed a working group to ramp up service to the North, where air transportation is an 'essential lifeline, even for residents who never fly' but whose food and medicine arrive by plane. It further called for an end to the transport minister's power to green-light mergers and acquisitions deemed anticompetitive by the Competition Bureau. And it urged industry-wide publication of data on delays and cancellations to help consumers make informed choices, on par with the United States and United Kingdom. Article content Latest National Stories
National Post
17 hours ago
- Business
- National Post
Allow total foreign ownership of domestic-only Canadian airlines: Competition Bureau report
Canada should allow up to 100 per cent foreign ownership of domestic-only airlines in a bid to lower fares and boost flight options, the Competition Bureau says in a new report highlighting the country's 'highly concentrated' aviation industry. Article content In a market study released Thursday, the watchdog suggested a new class of airline that operates only in Canada but has owners outside its borders, opening the gate to global expertise — and cash. Article content Article content Article content The current foreign ownership cap sits at 49 per cent, with sovereignty and national security often cited as the reason. In addition, no more than 25 per cent of a domestic carrier can be owned by any one foreign entity, a proportion the Competition Bureau proposed raising to nearly half. Article content Article content 'Allowing more foreign investment in Canadian airlines improves access to capital, drives growth and promotes competition,' the report said, pointing to Australia and New Zealand as places that permit full outsider ownership of in-country carriers. Article content 'As economist Michael Porter famously put it, unless a firm is forced to compete at home, it will usually lose its competitiveness abroad,' Brad Callaghan, an associate deputy commissioner at the Competition Bureau, said during a press briefing. Article content Weak competition in the airline industry remains a big hurdle to lower prices and better service across the country, and remote communities especially, the report found. Article content Article content 'Competition in Canada's airline sector has struggled to take off,' it said, noting consumers' dissatisfaction with ticket prices, service quality and range of flight choice. Article content Air Canada and WestJet together account for between half and three-quarters of all domestic passengers at major airports, according to the study. Article content Though competition improved between 2019 and 2023 with the arrival of Flair Airlines and the expansion of Porter Airlines, market concentration remains 'extremely high' and competition from new entrants fragile, the bureau said. Article content 'Many Canadians report that international flights are often cheaper than flights within Canada' — partly due to 'cabotage' rules prohibiting point-to-point trips within Canada by foreign airlines — it noted. The watchdog proposed working with other countries to remove foreign competition restrictions in international agreements.
Toronto Sun
a day ago
- Business
- Toronto Sun
Watchdog recommends up to 100% foreign airline ownership amid low competition
Published Jun 19, 2025 • 3 minute read An Air Canada flight taxis to a runway as a WestJet flight takes off at Vancouver International Airport, in Richmond, B.C., on Friday, March 20, 2020. Photo by DARRYL DYCK / THE CANADIAN PRESS Canada should allow up to 100 per cent foreign ownership of domestic-only airlines, the Competition Bureau says in a new report highlighting the country's 'highly concentrated' aviation industry. This advertisement has not loaded yet, but your article continues below. THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY Subscribe now to read the latest news in your city and across Canada. Unlimited online access to articles from across Canada with one account. Get exclusive access to the Toronto Sun ePaper, an electronic replica of the print edition that you can share, download and comment on. Enjoy insights and behind-the-scenes analysis from our award-winning journalists. Support local journalists and the next generation of journalists. Daily puzzles including the New York Times Crossword. SUBSCRIBE TO UNLOCK MORE ARTICLES Subscribe now to read the latest news in your city and across Canada. Unlimited online access to articles from across Canada with one account. Get exclusive access to the Toronto Sun ePaper, an electronic replica of the print edition that you can share, download and comment on. Enjoy insights and behind-the-scenes analysis from our award-winning journalists. Support local journalists and the next generation of journalists. Daily puzzles including the New York Times Crossword. REGISTER / SIGN IN TO UNLOCK MORE ARTICLES Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account. Share your thoughts and join the conversation in the comments. Enjoy additional articles per month. Get email updates from your favourite authors. THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK. Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account Share your thoughts and join the conversation in the comments Enjoy additional articles per month Get email updates from your favourite authors Don't have an account? Create Account In a market study released Thursday, the watchdog suggested a new class of airline that operates only in Canada but could have owners from outside its borders, opening the gate to global expertise — and cash. The current foreign ownership cap sits at 49 per cent. In addition, no more than 25 per cent of a carrier can be owned by any one foreign entity, a proportion the Competition Bureau proposed raising to nearly half. 'Allowing more foreign investment in Canadian airlines improves access to capital, drives growth and promotes competition,' the report said, pointing to Australia and New Zealand as places that permit full outsider ownership of in-country carriers. 'As economist Michael Porter famously put it, unless a firm is forced to compete at home, it will usually lose its competitiveness abroad,' Brad Callaghan, an associate deputy commissioner at the Competition Bureau, said during a press briefing. Your noon-hour look at what's happening in Toronto and beyond. By signing up you consent to receive the above newsletter from Postmedia Network Inc. Please try again This advertisement has not loaded yet, but your article continues below. Weak competition in the airline industry remains a big hurdle to lower prices and better service across the country, and remote communities especially, the report found. 'Competition in Canada's airline sector has struggled to take off,' it said, noting consumers' dissatisfaction with ticket prices and service levels. Air Canada and WestJet together account for between half and three-quarters of all domestic passengers at major airports, according to the study. Though competition improved between 2019 and 2023 with the arrival of Flair Airlines and the expansion of Porter Airlines, market concentration remains 'extremely high' and competition from new entrants fragile, the bureau said. 'Many Canadians report that international flights are often cheaper than flights within Canada' — partly due to 'cabotage' rules prohibiting point-to-point trips within Canada by foreign airlines — it noted. This advertisement has not loaded yet, but your article continues below. The report recommended a basket of reforms that include overhauling the airport funding model so the infrastructure costs fall less on passengers, thus lowering ticket prices. Costs on top of the fare such as airport fees, fuel taxes and security and navigation charges comprised 30 cents of every dollar that passengers paid airlines in 2023 compared with 25 cents in 2019, the study said. Allowing secondary airports to compete with major hubs would also offer another way to expand market access for new entrants, the study said. Currently, flight exclusivity clauses at some airports _ Montreal's, for example — mean only one airport in a local area can host international flights, narrowing the range of options. This advertisement has not loaded yet, but your article continues below. The advantages of incumbency come into play as well. 'Landing and takeoff slots at busy airports also favour airlines with existing rights due to rules on how slots are allocated,' Competition Bureau deputy commissioner Anthony Durocher said. The report stressed the unique challenges faced by remote communities and recommended a working group to ramp up service to the North, where air transportation is an 'essential lifeline, even for residents who never fly' but whose food and medicine arrive by plane. Over the past 20 months, four low-cost carriers have disappeared from the skies, as Lynx Air and Canada Jetlines shut down and WestJet folded subsidiary Swoop and the recently acquired Sunwing Airlines into its main-line service. This advertisement has not loaded yet, but your article continues below. Canada is a noted graveyard for budget airlines. Six foundered here between 1995 and 2015: Greyhound Air, Roots Air, Air Canada's Zip, Jetsgo, Zoom Airlines and Canjet. While the country's biggest cities remain amply served, smaller destinations have fewer options, which can also result in higher prices and, when things go awry, stranded passengers. The Calgary-Saskatoon route saw flights fall 39 per cent to 412 last month compared with 673 in May 2019, now that the route between Alberta and Saskatchewan's two biggest cities is served with non-stop flights by only WestJet, according to aviation data firm Cirium. Air Canada pulled out of the route over two years ago. The report noted that routes served by just one airline tended to be more expensive. This advertisement has not loaded yet, but your article continues below. 'Our research shows that when just one new competitor flies on a route between two cities, airfares go down by nine per cent on average,' the report said. The report also called for an end to the transport minister's power to override mergers and acquisitions deemed anticompetitive under a federal review process. And it urged industry-wide publication of data on delays and cancellations to help consumers make informed choices, on par with the United States and United Kingdom. 'The U.S. Department of Transportation publishes reams of publicly available data about the state of competition and performance in their air travel market, and Canadians would really benefit from that,' said Keldon Bester, executive director of the Canadian Anti-Monopoly Project. NHL Basketball Canada Editorial Cartoons NHL
Forbes
4 days ago
- Business
- Forbes
Cultural, Strategic, Operational, Tactical, And Crisis Leadership
Front line supervisor getty Leadership is about inspiring, enabling and empowering others to do their absolute best together to realize a meaningful and rewarding shared purpose. Nesting within that, CEOs, senior leaders, middle managers, and frontline supervisors should focus on cultural, strategic, operational, and tactical leadership respectively, with all-in during a crisis. Leadership modes Bradt Ultimately, culture is the only sustainable competitive advantage. It's the one thing CEOs can never delegate. All need to be clear on who we are and what we stand for as described in the organization's mission, vision and values. This is what inspires others to be part of the organization and is enduring. Strategic leadership is about choices – the creation and allocation of the right resources to the right place in the right way at the right time over time. This means there are wrong resources, wrong places, and wrong times. Michael Porter taught us that strategy is about choosing what not to do. Harry Kangis went one step further and taught us that choosing not to do a bad idea is easy. The hard choice is choosing not to do something that's a good idea for someone else. Choices are theoretically elegant and practically useless unless they are backed with enabling resources. Strategic choices should play out over time and are the province of senior leaders. This is where the 6% in Don Hampton's framework comes in. As CEO he said others had to make 90% of the decisions. 4% were his alone. 6% were shared. Strategic choices must be shared by the senior leadership team, CEO, and board. Operational leadership occupies the middle ground, where the matrix comes to life. It's part strategic and part tactical. It's mid-term. It's the realm of middle managers leading divisions or business units, functions, geographies, programs, or campaigns. These leaders often wear two hats, sitting on the executive leadership team with their influence spanning across the entire organization, and leading their own areas. Business units, functions, geographies and the like will have their own strategies, nested within the overall strategies. The allies in World War II provide an illustrative example. Marshall was empowered to make that choice and empowered Patton to run his campaign. Strategic leadership flows from the Greek word 'strategos' – the art of the general. This is about arranging forces before the battle – planning where to play (and not play) and how to win. Tactical leadership flows from the Greek word 'taktikos' – deploying forces in battle. This is about tactical capacity, a team's ability to translate strategies into tactical actions decisively, rapidly, and effectively, with high-quality responsiveness under difficult, changing conditions. As one leader puts it, 'Tactical leadership is about permanent agility and adaptation looking for solutions.' This only works if senior and operational leaders empower tactical leaders to make choices different than they would make themselves, nested within the culture and strategic choices, and hold them accountable for their results. These are more short-term choices and are the realm of frontline supervisors. In an earlier article on critical learning about crisis management, I suggested three steps of disciplined iteration in line with an organization's overall purpose/culture: Click here for a categorized list of my Forbes articles (of which this is #949)
