CBJ JANUARY 2026

11 CANADA OPENS SKIES TO EXPANDED AIR TRAVEL JANUARY 2026 « The Canadian Business Journal 10 I n a move that could reshape international travel for Canadians, the Carney government has formally opened the country’s skies to expanded air travel agreements with key global partners, significantly increasing the number of flights allowed and broadening competition in Canada’s aviation market. Experts, airlines, and travel advocates see this as a watershed moment that will put downward pressure on fares, increase choices for travellers, and stimulate competition that has long been lacking in Canada’s historically insular airline industry. THIS EXPANSION IS more than a bureaucratic win - it has the potential to create meaningful savings for Canadian travellers. For decades, Canada’s long-distance geography and fragmented airline market have left consumers with high ticket prices and limited options, especially for travel to Europe, Asia, and the Middle East. The result has been a de facto oligopoly in many international markets, where a handful of domestic carriers set fare structures with limited outside influence. Opening up additional international flight rights to foreign carriers - particularly major carriers from the Middle East like Emirates, Etihad, and Saudia - introduces competition that experts say will help break that pricing gridlock. On December 1, the Canadian government announced expanded air transport agreements with Saudi Arabia and the United Arab Emirates (UAE), two of Canada’s fastest-growing international markets. Under the new terms, the number of weekly passenger flights allowed between Canada and Saudi Arabia will rise from four to 14, while Canada-UAE flight rights will expand to 35 per week per country. Cargo flights, too, now have no weekly limits, allowing airlines to provide more flexibility and scheduling options than ever before. More competition usually means lower prices. When carriers compete for passengers on the same routes, they often respond with price incentives, better schedules, and improved service. In a competitive market, airlines cannot get away with charging premium prices because