Airline deregulation in Canada and its economic effects

Abstract

This paper begins by discussing Canada's regulatory regime during the late 1970s, the forces behind airline deregulation, Canada's evolution toward deregulation, and privatization of Air Canada. Following this, the response of the industry is studied. Significant changes in industry structure are described, data on the early experience with conduct and performance is given, and conclusions on the Canadian experience with airline regulatory reform are drawn. These are presented in the form of lessons for other countries contemplating their own reform.