Canadian Competition Bureau says Montreal-Trudeau airport should end its monopoly

Canada’s Competition Bureau is recommending an end to Montreal-Trudeau airport’s monopoly on international flights, but it won’t be an easy feat.

In a report released Thursday, the Bureau said a competitive market for air travel would deliver “major benefits” for Canadians from lower prices to better customer experience.

It pointed out that Air Canada and WestJet dominate the Canadian market.

The report says opportunities exist in smaller secondary airports, which could be a better foothold for new market entrants if allowed to service international flights, instead of the current system that limits them to one major airport per region.

For example, the Porter airline has a deal with the 10-gate Montreal Metropolitan Airport (formerly Saint-Hubert) on Montreal’s South Shore limited to domestic flights. The airline said it would like to expand that to U.S. and sunny destination once the terminal is complete.

But the federal government and Montréal-Trudeau International Airport have an agreement that it would be the only airport near Montreal with international flights.

“These restrictions prevent secondary airports from launching competitive services and limit their market impact. Removing these restrictions would enable secondary airports to respond to market opportunities. Passengers, workers, and airlines would then have more options,” the Bureau said in its report.

But there is staunch opposition to the idea, including from Longueuil Mayor Catherine Fournier. She stressed it has always been clear that the Saint-Hubert terminal would be limited to Quebec and Canadian flights.

“The City is not in favour of international flights, such as flights to the south, which involve older, noisier aircrafts. Social acceptability is essential,” Fournier said in a statement to CTV News.

“The tranquility of our neighbourhoods is a priority for the municipal administration. It should be noted that the Porter terminal will be closed at night and that commercial night flights are prohibited.”

Aéroports de Montréal (ADM) also opposes the Competition Bureau’s recommendations, saying the current consolidated model is best.

It said having two bases in the same region will increase costs for labour and mechanics, among other things. It would also increase government costs for border control, according to ADM.

“Adding a second international airport for passengers would reduce the carriers’ customer base and increase their operating costs, while jeopardizing the gains made by all metropolitan players since the concentration of flights,” an ADM spokesperson said in an email.

McGill professor John Gradek, who lectures on aviation management, said the report’s recommendations are no done deal but are worth considering.

The ADM is set to get a facelift and major expansion over the next few years, which could cost several billion dollars.

Gradek says using the Saint-Hubert airport could be a way to save money.

“Why don’t we look at it a group of airports that have multiple uses, and maybe we don’t have to invest as much into ADM Trudeau because we’ve got capacity at Saint-Hubert,” he said.

“I think that’s a very worthwhile exercise, because 10 gates at Saint-Hubert is a lot … To build 10 gates at Trudeau is billions. So, the price that we pay on a society perspective, yeah, you’ll get noise.”