Airlines operating in Canada may face increasing demands from customers to enhance their services as the federal government relaxes restrictions on air travel from the Middle East. Ottawa is easing limitations on flights originating from Saudi Arabia and the United Arab Emirates following past diplomatic tensions that had constrained air travel. Aviation specialist John Gradek highlighted that airlines from the Middle East are globally renowned for their exceptional services, putting pressure on Canadian carriers to elevate their offerings to compete effectively.
Gradek, an aviation management lecturer at McGill University, emphasized that Canadian airlines must step up their game to stay competitive with these foreign counterparts. The increased competition is prompting Air Canada, WestJet, and Air Transat to reevaluate the onboard service quality, amenities, and aircraft configurations they provide to passengers. Parliamentary committees, comprising Canadian MPs and senators, have been investigating various challenges facing the country’s aviation sector, including limited competition, high fares, accessibility issues, and passenger rights concerns.
Emirates, for instance, has gained online recognition for its luxurious first-class accommodations, with videos showcasing lavish features like caviar meals, premium sleeping pods, and onboard showers garnering millions of views. Notably, the Canadian government had previously restricted additional flights from the U.A.E. to safeguard its domestic aviation industry. In response, the U.A.E. took retaliatory measures by expelling Canada from a previously undisclosed logistics base utilized by Canadian troops for operations in Afghanistan.
Saudi Arabia also suspended flights to Canada from 2018 to 2023 due to a diplomatic dispute over human rights criticisms. In efforts to diversify trade away from the U.S. amid President Donald Trump’s trade policies, Prime Minister Mark Carney has been working to improve relations with Middle Eastern nations. His recent visit to the U.A.E. secured a substantial $70-billion investment commitment from the country to Canada.
Transport Minister Steven MacKinnon subsequently announced an expansion of air transport agreements to allow up to 14 passenger flights per week from Saudi Arabia (previously four) and up to 35 passenger flights per week from the U.A.E. (previously 21), along with unrestricted cargo flights. This move aims to boost export markets, strengthen business ties, and enhance global connectivity for Canadian carriers. Gradek noted that countries in the Middle East aspire to achieve an open skies agreement with Canada, similar to the one in place with the United States, enabling unlimited market access.
He predicted that foreign airlines would gain a larger market share under the new agreement, particularly for travel to hub destinations like Dubai and onward to global connections. In contrast, Canadian carriers may benefit from increased traffic from the Middle East to Canadian hubs for onward travel to the U.S. Nonetheless, Gradek suggested that Canadian airlines might struggle to match the premium experience offered by Middle Eastern carriers at competitive prices due to their focus on high-end seating options.
Air Canada maintained that it remains competitive on a global scale and highlighted its partnership expansions with Emirates to enhance customer benefits and loyalty programs. While Air Canada affirmed its competitive stance, WestJet and Air Transat did not provide comments on the potential impacts of the government’s decision to liberalize Canadian air travel. Additionally, the government revealed plans to increase flight capacity between Canada and Albania to bolster international air connectivity.
