Good morning! This is Queen Street Analytics' weekly roundup of regulatory developments, legislative discussions, political announcements and other government-related news for the airline and airports industry, as well as pilots and other aviation-professionals. Every Monday, we break down the most important updates in this space in under five minutes.

Dates: 2025-06-15 to 2025-06-21

📋 In This Week's Newsletter

• 🇨🇦 Canadian Federal GR News
• 🇺🇸 US Federal GR News
• 💬 Government Consultations
• 📱 Public Officials' Social Media
• 📚 What We're Reading This Week

Canadian Federal GR News

Competition Bureau Issues Report Urging Greater Competition in Domestic Airline Sector

The Competition Bureau Canada released a market study on June 19, 2025, examining the structure and competitive environment of the domestic airline industry. The Bureau concluded that the domestic market remains heavily concentrated, with Air Canada and WestJet responsible for between half and three-quarters of domestic passenger traffic at major airports. Despite the expansion of new entrants, the Bureau found competitive pressure remains limited, particularly affecting affordability and passenger choice. Recommendations to government include prioritizing competition in aviation policy and airline merger reviews, easing restrictions on foreign ownership to leverage international capital, and developing regulations specifically adapted to the realities of northern and remote communities. The report states that the introduction of a single new competitor on a given route reduces airfares by an average of 9%, underscoring the measurable impact of additional market entrants. Calls for changes to foreign ownership rules and access barriers have received significant attention in national media. The Bureau’s study is expected to influence upcoming policy deliberations related to airline regulation.

Sources: Announcements: www.canada.ca

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Canada Finalizes Major Aerospace Deal with LOT Polish Airlines for Airbus A220

On June 16, 2025, LOT Polish Airlines announced the purchase of 40 Canadian-built Airbus A220 aircraft, assembled at Mirabel, Quebec, with options for an additional 44 units. The announcement was made at the Paris Air Show and marks a significant export order for Canada’s aerospace sector. The arrangement is being described by officials as both a commercial milestone and a substantial job generator, maintaining and creating thousands of roles across aerospace production and supply chains. The A220 selection continues a longstanding Canada-Poland aerospace relationship and supports Canada’s stated objective to diversify trade with trusted European partners.

Sources: Announcements: www.canada.ca

Minister Joly Leads Canadian Delegation at Paris Air Show, Showcases Aerospace Sector

Minister Mélanie Joly represented Canada at the 55th International Paris Air Show, engaging with CEOs from domestic and international aerospace firms, as well as provincial partners including Quebec Premier François Legault and Ontario Minister Victor Fedeli. Minister Joly promoted the Canadian aerospace industry as a destination for global investment and voiced continued government support for major investments in aerospace and defense. During events, Minister Joly welcomed LOT Polish Airlines’ acquisition of up to 84 A220 aircraft, reiterating its importance for Canadian workers and supply chains. France’s procurement of new GlobalEye aircraft, which incorporate the Canadian-built Bombardier Global 6500 platform, was also highlighted. Additionally, $87.4 million in new funding was announced for Initiative for Sustainable Aviation Technology (INSAT) projects.

Sources: Announcements: www.canada.ca

Labour Code Amendments Restrict Replacement Workers in Federally Regulated Workplaces

As of June 20, 2025, amendments to the Canada Labour Code, contained in Bill C-58, took effect prohibiting the use of replacement workers during strikes or lockouts in federally regulated workplaces. The legislation requires that employers and unions reach agreement within 15 days after notice to bargain is issued on which activities must continue to protect public health and safety during work stoppages; if not, the Canada Industrial Relations Board will determine the activities. These changes are intended to influence bargaining dynamics and processes in federally regulated sectors, including aviation.

Sources: Announcements: www.canada.ca

Government Releases Backgrounder on Unique Air Travel Challenges for Northern and Remote Communities

On June 19, 2025, the Competition Bureau Canada published a background document analyzing the distinct air travel issues encountered by northern and remote communities. The analysis explores the vital role of air connectivity for residents where alternative transportation options are limited. It provides context for ongoing discussions about market access, affordability, and regulatory exemptions specific to these regions.

Sources: Announcements: www.canada.ca

Competition Bureau Schedules Technical Briefing Following Airline Market Study

The Competition Bureau held a technical briefing on June 16, 2025, following the release of its airline market study report. The session provided stakeholders and media with insights into the study’s methodology, findings, and policy recommendations. The Bureau’s engagement is part of its broader mandate to inform government and industry on competitive dynamics.

Sources: Announcements: www.canada.ca

StatsCan Releases Weekly Aircraft Movement Data for Early June

Statistics Canada published its latest dataset covering aircraft itinerant movements for the week of May 31 to June 6, 2025. This data, updated on June 18, offers timely metrics on airport activity levels across the country, informing operational and market assessments for the aviation sector.

Sources: Open Government Data Set: www.statcan.gc.ca

US Federal GR News

U.S.-UK Economic Prosperity Deal Ratified, Tariff Reductions for Aerospace Products

On June 16, 2025, President Donald Trump issued an executive order implementing the U.S.-UK Economic Prosperity Deal, following its announcement in May with UK Prime Minister Keir Starmer. The agreement sets terms for expanded U.S. exports and establishes quotas and new tariff structures for automotive, steel, aluminum, and aerospace products. For aerospace, the arrangement eliminates tariffs on certain UK-origin products, subject to supply chain security verifications. The deal also enables reciprocal preferential treatment for American and British aerospace sectors, with implementation delegated to the Secretary of Commerce. The provisions affect regulatory requirements for compliance, supply chain documentation, and cross-border trade of aircraft.

Sources: White House Announcements: www.whitehouse.gov

FAA Issues New Airworthiness Directive for Airbus Canada BD-500-1A11 (A220) Aircraft

On June 20, 2025, the FAA released an airworthiness directive (AD) for specified Airbus Canada BD-500-1A11 aircraft, effective July 25, 2025. The AD addresses possible unsafe conditions arising from uncalibrated torque application at hydraulic power control unit (PCU) interfaces, which could lead to leakage and hydraulic loss. Operators are required to re-torque fittings, apply torque seal, inspect for leaks, and carry out corrective actions as needed—in line with Transport Canada AD CF-2024-13. The directive applies to five U.S.-registered aircraft and aligns with Canadian authorities on leakage tolerances. Compliance costs are estimated at $765 per airplane. The AD incorporates service and compliance procedures by reference.

Sources: U.S. Federal Announcements: www.federalregister.gov

FAA Proposes Broader Airworthiness Directive for Viking Air Limited DHC-3 Aircraft

A proposed FAA airworthiness directive, posted June 20, 2025, would supersede an earlier AD for Viking Air Limited DHC-3 aircraft by mandating regular inspection of the stabilizer actuator lock ring and installation of a secondary retention feature as a terminating action. The change is in response to findings after a fatal 2022 accident linked to missing actuator lock rings and resulting loss of control. The proposed directive also prohibits installation of unserviceable components and specifies harmonization with Transport Canada requirements.

Sources: U.S. Federal Announcements: www.federalregister.gov

Government Consultations

CBSA Launches Accessibility Questionnaires for Employees and Travellers

The Canada Border Services Agency opened an external questionnaire on June 16, 2025 to gather feedback from Canadian travellers concerning accessibility. The consultation closes July 13, 2025.

Sources: Canadian Government Consultations: www.cbsa-asfc.gc.ca

CBSA Conducts Internal Consultation on Accessibility for Staff

A separate internal questionnaire was launched on June 16, 2025, inviting CBSA employees to provide input on workplace accessibility, with a scheduled end date of July 4, 2025.

Sources: Canadian Government Consultations: atlas

Public Officials' Social Media

On June 17, 2025, MP Leslie Church posted about discussions with the Aircraft Mechanics Fraternal Association focused on workforce growth and skills within Canada’s aerospace sector.

Sources: Social Media: x.com

Minister Mélanie Joly tweeted on June 17, 2025, about discussions with Safran on the next phase in Canada’s aerospace and defence sector.

Sources: Social Media: x.com

Minister Mélanie Joly posted on June 17, 2025, that Canada’s advantage in clean energy supports a strong foundation for the future of aerospace.

Sources: Social Media: x.com

What We're Reading This Week

• Watchdog urges Canada to allow 100% foreign ownership of airlines to spur competition: Coverage of the Competition Bureau’s recommendation to open domestic airlines to full foreign ownership.
• If Canada wants cheaper air travel, we must consider more foreign investment, Competition Bureau says: Article examining the case for increased foreign investment in airlines.
• Next Evolution of Air Canada's Digital Experience Arrives with Expansion of Digital Identification Boarding for Domestic Flights Departing YVR: Air Canada debuts new digital identification boarding process.
• Opinion: Canada is not for sale – and neither are our skies: Opinion piece discussing implications of proposed changes to airline ownership.