In 1999 Onyx Corp. offered to take over both Air Canada and Canadian Airlines, thereby creating a single monopoly Canadian carrier. Among others, the argument was that the Canadian aviation market cannot sustain more than one (major) player. Keeping in mind that Canadian population is about 1 tenth that of the U.S., if the U.S. has 6 major carriers (now even less), then Canada should have 6 tenth of a carrier.
Today we have two major airlines. What has changed? Is this situation sustainable? Is there a place for a third carrier?
LMAOOO Economics of Air Transportation 2166G. Good luck