Post by : Meena Ariff

Canadian airlines may soon face increased pressure to improve passenger experience as the federal government moves to open the country’s airspace to greater competition from Middle Eastern carriers. Ottawa has announced plans to relax long-standing restrictions on flights from Saudi Arabia and the United Arab Emirates, following years of diplomatic tensions that had limited air travel.

Aviation analyst John Gradek, a lecturer in aviation management at McGill University, said airlines from the Middle East are globally admired for their onboard services and luxury offerings. Their growing presence in Canada, he said, will force domestic airlines to step up if they want to remain competitive.

According to Gradek, carriers such as Air Canada, WestJet, and Air Transat may need to reassess cabin layouts, onboard amenities, and overall service standards as competition intensifies.

Canada’s airline industry has been under scrutiny in recent years, with parliamentary committees examining issues such as limited competition, high ticket prices, accessibility concerns, and passenger rights. The entry of more foreign airlines is expected to reshape the market.

Middle Eastern airlines, particularly Emirates, are well known for premium offerings such as private suites, gourmet dining, and onboard showers. These features have gained widespread attention online through travel influencers, enhancing the global reputation of the region’s carriers.

In the past, Canada restricted flights from the UAE to protect domestic airlines. Air Canada had argued that foreign carriers benefited by transporting Canadian passengers to third countries via hubs like Dubai, without offering equal advantages to Canadian airlines. That dispute led to diplomatic retaliation, including restrictions affecting Canadian military operations abroad.

Relations with Saudi Arabia also suffered after Canada publicly criticized the country’s human rights record in 2018, leading to a suspension of flights until 2023.

Prime Minister Mark Carney has since made improving ties with Middle Eastern nations a key part of Canada’s strategy to diversify trade and reduce reliance on the United States amid ongoing trade tensions. During a visit to the UAE in November, Carney secured a $70-billion investment commitment and emphasized Canada’s intent to deepen global economic ties.

Shortly after, Transport Minister Steven MacKinnon announced expanded air transport agreements. Under the new deal, passenger flights from Saudi Arabia will increase to up to 14 per week, while flights from the UAE will rise to as many as 35 weekly. Cargo flights from both countries will face no limits. Canadian airlines will receive reciprocal rights.

MacKinnon said the move supports Canada’s broader goal of strengthening exports, enhancing business connections, and expanding international engagement.

Gradek noted that Middle Eastern airlines are aiming for broader market access similar to Canada’s open skies agreement with the United States. He believes the new arrangements favor foreign carriers, as they can funnel Canadian travelers through major hubs like Dubai to destinations across Asia, Africa, and Europe.

By contrast, Canadian airlines primarily connect Middle Eastern passengers through Canada to U.S. destinations, which Gradek described as a smaller market.

He also pointed out that Middle Eastern carriers can afford competitive economy fares because they generate substantial profits from premium cabins, a model that Canadian airlines may struggle to match.

Air Canada, however, maintains that it already competes at a global level. The airline highlighted its expanded partnership with Emirates, which includes shared ticket sales and loyalty program benefits through 2032.

WestJet and Air Transat have not publicly commented on how the expanded flight access may affect their operations.

The government has also announced additional flight expansions with countries such as Albania, signaling a broader effort to improve Canada’s global air connectivity.