This analysis explores cost structures and policy implications for Canadian airlines, suggesting equitable financial treatment for Air Canada.
Airlines in Canada are generally smaller than in the US, despite recent growth, and supply more charter and freight services; but deregulation is on similar lines. Air Canada has the most excess capacity. The authors recommend that it be placed on an equal footing financially with the others, either by privatisation or by taxation.
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Gillen et al. (1990) studied this question.
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