The Canadian Airline Industry
INTRODUCTION
An airline is an organization providing aviation services to passengers and/or cargo. It owns or leases airlines with which to supply these services and may form partnerships or alliances with other airlines for reasons of mutual benefit
The scale and scope of airline companies ranges from those with a single airplane carrying mail or cargo, through full-service international airlines operating many hundreds of airplanes in various types. Airline services can be categorized as being intercontinental, intercontinental, regional or domestic and may be operated as scheduled services or charters.
Canada 's domestic airline industry has evolved from being an Air Canada monopoly to a virtually deregulated industry where the market is open to any carrier who can obtain an operating license and pass a financial fitness test. This environment came about in response to pressure from carriers for less government regulation to allow them to better compete in the domestic marketplace. To this end, the government passed the National Transportation Act in 1987, which brought about the economic deregulation of Canada 's domestic airline industry.
Air Canada consolidated its position by becoming a privatized corporation in 1988, thereby allowing it to compete without the constraints of being a Crown corporation, including the need for government approval of corporate and financial plans. It also acquired regional airlines, further strengthening its position
The Canadian Airline Market
Air Canada has always been the largest carrier, initially as the publicly owned carrier, with exclusive rights to serve domestic markets, and latterly, since relaxation of entry and pricing restrictions, by success over domestic competitors. With the acquisition of Canadian Airlines International, Air Canada moved from the 18th to the 12th largest passenger airline in the world and the 7th largest in North America.
The other major development in the domestic market has been
An airline is an organization providing aviation services to passengers and/or cargo. It owns or leases airlines with which to supply these services and may form partnerships or alliances with other airlines for reasons of mutual benefit
The scale and scope of airline companies ranges from those with a single airplane carrying mail or cargo, through full-service international airlines operating many hundreds of airplanes in various types. Airline services can be categorized as being intercontinental, intercontinental, regional or domestic and may be operated as scheduled services or charters.
Canada 's domestic airline industry has evolved from being an Air Canada monopoly to a virtually deregulated industry where the market is open to any carrier who can obtain an operating license and pass a financial fitness test. This environment came about in response to pressure from carriers for less government regulation to allow them to better compete in the domestic marketplace. To this end, the government passed the National Transportation Act in 1987, which brought about the economic deregulation of Canada 's domestic airline industry.
Air Canada consolidated its position by becoming a privatized corporation in 1988, thereby allowing it to compete without the constraints of being a Crown corporation, including the need for government approval of corporate and financial plans. It also acquired regional airlines, further strengthening its position
The Canadian Airline Market
Air Canada has always been the largest carrier, initially as the publicly owned carrier, with exclusive rights to serve domestic markets, and latterly, since relaxation of entry and pricing restrictions, by success over domestic competitors. With the acquisition of Canadian Airlines International, Air Canada moved from the 18th to the 12th largest passenger airline in the world and the 7th largest in North America.
The other major development in the domestic market has been
Bibliography: Debra Ward, The Impact of Airline Restructuring in Canada: First Interim Report, February 5, 2001; Bruce Hood, The Report of the Air Travel Complaints Commissioner, Canadian Transportation Agency, March 2001. Transport Canada output indices are described in Transportation in Canada 1996, Annual Report, pp. 153-167. Transport Canada, Transportation in Canada 2000, Annual Report, p. 164. .Tae Hoon Oum, "Key Aspects of Global Strategic Alliances and the Impacts on the Future of Air Canada and Other Canadian Air Carriers", paper prepared for CTAR, March 2001. Steven A. Morrison and Clifford Winston, "The Remaining Role for Government Policy in the Deregulated Airline Industry", in Deregulation of Network Industries: What 's Next, edited by S. Peltzman and C. Winston, Washington, D.C., AEI-Brookings Joint Center for Regulatory Studies, 2000. This is discussed in Thomas W. Ross and W.T. Stanbury, "Policy Proposals for Enhancing Competition in Canadian Airline Markets", paper prepared for CTAR, March 2001. The TCAA is discussed in P.P.C. Haanappel, "International Aviation Framework and Implications for Canadian Policy", paper prepared for CTAR, March 2001.