ABSTRACT

Thepressurefacedbygovernmentstoderegulatetheirscheduledairlineindustries hasbeenaworldwidephenomenon.Canadaand(morerecently)Australiahave

followedtheUSexampleinremovingthemajorityofeconomiccontrolsrelatingto theirdomesticmarkets.Oneexceptiontothispolicyhasbeentheverylightly populatedNorthernregionofCanadawhich,becauseoftheperceivedsocial necessityofitsairtransportservices,remainstightlyregulated.Inbothcountriesthe

respectiveregulatoryauthorityhadexertedatightercontrolthanhadtheCivil AeronauticsBoardintheUS.Despiteeachcountrysharinganumberofsimilar

characteristics,suchastheirhugelandmassesandsmallpopulations,the

developmentoftheirairlineindustrieshasfollowedalongverydifferentlines.