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Deregulation

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Deregulation

Cartoon demonstrated why deregulation was neededAs deregulation came into being in 1987, there was a rapid expansion of the newly formed Canadian Airlines, allowing Canadian to achieve the status of a serious rival to Air Canada.

The expansion of Canadian was achieved by the acquisition of several airlines and their routes to the Far East. Canadian hoped these routes would help pay the massive debt created by the purchases of small airlines. Both Canadian Airlines and Air Canada suffered as the economic recession set in and they found that they were flying with empty seats. This continued to be the case throughout the 1990s.

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