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Current situation in Canada's airline industry The Canadian airline industry has experienced several problems throughout its history, but the worst undoubtedly have been marked by the last couple of years. A combination of internal and external factors have led to the filing for bankruptcy protection by Canada's largest airline company, Air Canada, and the struggles that the remaining companies have been coping with. However, in order to fully understand the situation the industry finds itself in today, it is important to account for all the factors that have influenced it over the years. The state of competition in the industry has been an important issue. Historically, Air Canada has dominated the domestic market, accounting for over 55% of market share. When it acquired its largest competitor, Canadian Airlines, this percentage was increased even further. This situation raised concerns that Canadian consumers were not benefiting from the effects of competition, meaning higher...

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