Liberalising the Canadian scheduled aviation market

<p>The past decade has witnessed a considerable relaxation of traditional, economic regulation of markets (Swann (1988)). In particular there has been a movement away from direct controls over market entry and exit, output, rates of return, and price setting, and towards regimes of quality and social regulation which aim to regulate the standards adopted by those active in the market. This shift in emphasis of policy has been both broad in its international coverage and extensive in the sectors involved (Button and Swann (1989a)). Accompanying the changes in economic regulation has often been a reduction of public sector involvement more generally. There have been, for example, extensive programmes of privatisation in many countries and even under many communist regimes there has been active encouragement of greater private sector participation in the economy.</p>