ABSTRACT
Thepressurefacedbygovernmentstoderegulatetheirscheduledairlineindustries hasbeenaworldwidephenomenon.Canadaand(morerecently)Australiahave
followedtheUSexampleinremovingthemajorityofeconomiccontrolsrelatingto theirdomesticmarkets.Oneexceptiontothispolicyhasbeentheverylightly populatedNorthernregionofCanadawhich,becauseoftheperceivedsocial necessityofitsairtransportservices,remainstightlyregulated.Inbothcountriesthe
respectiveregulatoryauthorityhadexertedatightercontrolthanhadtheCivil AeronauticsBoardintheUS.Despiteeachcountrysharinganumberofsimilar
characteristics,suchastheirhugelandmassesandsmallpopulations,the
developmentoftheirairlineindustrieshasfollowedalongverydifferentlines.