Closing the Toll Booth
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2017-09-13
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Abstract
It is no secret that Canadians pay among the highest airfare rates in the world. As a result, there are an estimated 5 million people who cross the border each year to fly out of American airports because of their cheaper airfare. Canada's previous policy decisions regarding airports are now causing an estimated loss of $2.6 billion per year to the Canadian economy and has pushed more Canadian's to use US airports. Using a qualitative comparative analysis, this paper shows that Canada's airports are being poorly managed. The paper also highlights the lack of competition amongst Canadian airlines which has contributed to higher prices. These two factors are the major driving force for Canada's costly air travel. This paper recommends that the federal government sell Canada's largest airports either partially or in full and that the money be redirected to infrastructure spending. This paper also recommends that the federal government pursue the removal of outdated foreign ownership restrictions which have hindered airline competition within Canada.
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Jackson, Cee-Jay. (2017). Closing the Toll Booth. (Master's thesis, University of Calgary, Calgary, Canada). Retrieved from https://prism.ucalgary.ca.