Air Canada or Afghanistan

http://www.businessweek.com/news/2010-10-12/canadian-troops-to-quit-u-a-e-base-after-air-dispute.html

Two of the fastest growing airlines are based out of the United Arab Emirates, Emirates and Etihad, but their growth into the Canadian aviation market has been stalled and has now started a diplomatic spat between Canada and the UAE.  The Canadian government holds a tight grip on the aviation industry in Canada, and favours Air Canada above any other airline, but now this protectionism has led to the expulsion of Canadian troops from the UAE.  Currently only 6 weekly flights are allowed between Canada and the UAE, this far less then what is needed to meet demand, Emirates currently flies the A380 between Toronto and Dubai the world’s largest airliner, but with concerns of UAE airlines eating into Air Canada’s business, even though Air Canada doesn’t fly to the UAE.  The Canadian government has to ask itself whether the expulsion of Canadian troops from Camp Mirage, the jumping off point for Canadian troops in Afghanistan.  Canada is only going to have a sizable force in Afghanistan for another year, but as any Canadian consumer knows Air Canada could use some competition to lower its prices, therefore the government should reconsider its decision because even with a smaller force Camp Mirage is still needed.

This entry was posted in COMM 101. Bookmark the permalink.

Leave a Reply

Your email address will not be published. Required fields are marked *