Gov’t Fees and Too Few Budget Airlines Keeping Canada’s Airfares High

Some Canadian aviation industry experts tell City News that studies show this country has the highest airfares among all developed nations. 

While they applaud the new airline entries into the Canadian market, they say there still isn’t enough competition to drive down prices. They also blame federal government restrictions on foreign ownership of Canadian airlines for reducing competition. 

In addition, high fees charged by Ottawa to airlines for airport use, aviation and navigation services keep costs high for airlines, which pass them on to consumers. Experts contrast Canada’s model to the U.S. where “There, taxpayers subsidize airports. Here, airports subsidize the federal treasury.” 

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