FlyerTalk Forums - View Single Post - Why do Canadians pay so much when it comes to flying?
Old Dec 13, 2014, 9:19 am
  #24  
747FC
 
Join Date: Jan 2013
Location: Hawai'i Nei
Programs: Au: UA, Marriott, Hilton; GE
Posts: 7,145
Originally Posted by callum9999

No, no, no, no, no. Canada needs competition, which is not present due to the small population. It really IS that simple. Stop comparing it to Europe. The population density of Europe is 112 people per square kilometre. In Canada it's 3.4.

You cannot scale down a huge aviation market like Europe and claim that it could work in Canada on a smaller scale. It just can't.

Can there be new entrants to the Canadian market? Yes. Can fares drop a bit? Yes. Can fares drop to the level seen in Europe? NO. I'd love to see your evidence that the numerous LCC failures in Canada is because Canadians "view them as charters" and don't believe you can fly that cheaply!
Originally Posted by zinneken

You highlight my point about mentality of strong belief in reasons not valid. Nothing to do with small population, I'm afraid you fail to see fares can drop exactly like in Europe, if there are too many people for you in Europe, see Iceland, or Norway, or so many other examples. And I do not think the greater Toronto area 5 million (like the whole of Norway) or Vancouver area 2.3 million is a few people which may wish to fly between those 2 locations or to other Canadian destinations for $100. The argument of "low" population or density is not a valid one, it is only one used to validate a continuation of the monopolists.
What is it about free enterprise that is so difficult for you to understand? The Canadian market is not attractive enough (estimated profitability) to motivate an investment consortium to place assets (airplanes and people) there to compete with entrenched competitors.

Even if there was marginal profitability, entry into competition would spur a fare war, depressing profits to the point that ROI would be better achieved by assets placed in another market.

Last edited by EmailKid; Dec 13, 2014 at 9:42 am Reason: Fixed multiquote
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