How to make the Canadian airline industry more competitive

The airline industry has gone through plenty of turbulence over the last few years. Following a period of crisis caused by an economic slowdown in the United States and amplified by the attacks of 9/11, the SARS epidemic and the war in Iraq, air traffic began growing again in 2004. The airline sector remains fragile, however, and a jump in oil prices or new terrorist attacks could set things back again. Moreover, the high tax burden that Canadian air carriers are forced to bear compared to their U.S. rivals threatens their competitive position in a context of growing liberalization of airline markets.

Building Prosperity in a Canada Strong and Free

What balance between our public and private sectors will induce the best performance from Canada’s economy? What division of effort and resources among our three levels of government will deliver the peace, order, and public services essential to our quality of life at the least cost and greatest responsiveness to our desires? What balance between “perfect” freedom and the constraints necessary in a complex society will generate the highest levels of wealth and job-creating economic performance? In this report, we have provided our best answers to these questions along with recommendations for action based upon those answers.

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