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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.
There's no mystery as to why. Europe has the world's most open airline markets. Back in the early 1990s, the European Union made a move to full cabotage, allowing any airline in any European Union country to fly into any other nation, to schedule flights in-country, and to pick up and drop off passengers in that same country.
School might be out but that doesn't mean we (and our politicians who make the rules) can't learn a thing or two on our summer vacations, be it taxis, airline travel or on convenience in shopping for beer, wine and spirits. Can Canadians learn from the rest of the world? We'll find out in September.
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.