The Canadian Airline Industry

Paper Summary:

This essay examines a number of issues regarding the complex interactions of government and market with respect to the Canadian airline industry. Beginning with a brief outline of the respective roles of government and market in economic theory, the paper argues that the Canadian government has an important role to play in the Canadian airline market with regard to promoting competition.

From the Paper:

"The Canadian airline industry may be seen as an example of an industry in which the roles of government and the market are not only complex and highly integrated, but also highly controversial as well. In large measure, this is due to the limited size of the Canadian domestic airline market, and the public demand for geographical coverage spanning a continent. This mixture of political forces with market forces is further complicated, in the Canadian context, by the issue of Canadian nationalism which manifests itself in the market in barriers to investment by foreign capital in the Canadian airline industry."

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