... best possible price. However, like all airlines around the world, Canada's carriers eventually faced numerous problems caused by high fuel prices (Appendix 1), worldwide recessions, and decreased demand. Furthermore, government control seemed to foster the stagnation of the industry, which did not have to be creative or innovative in order to remain competitive. Following the example of the United States, the Canadian government decided to deregulate the industry. Although the goal of deregulation was to achieve cheaper airfares, greater frequency of flights, and better service, it has resulted in serious problems, including overcapacity and destructive competition. Since the Canadian airline industry, an integral part of the Canadian economy, has experienced serious problems in a regulated market as well as under deregulation, only a collaborative effort by the government, airline executives, investors, and consumers can stimulate the industry and improve profitability. Background: The Birth of Canada's Airline Industry Actual air travel in ...

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