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The Real Reason Canadians Pay Higher Prices Than Americans For the Same Products

The United States and Canada do not allow for full competition, but Americans benefit from a bigger market given their much larger population. Thus, a continental market in airline travel would serve passengers if an American airline could compete head-to-head with Canadian airlines on domestic routes. But the federal government won't allow it. The result? Higher airline fares in Canada.
CP File

Why Canadian Travel Needs More Competition

For those returning home after the holidays, here's a question you might have pondered: Why does it cost so much to travel? Answer: government policy. Consider two examples, starting first with taxi fares. That's one example of how governments artificially inflate travel costs. Here's another: airline fares.