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