So, Air Canada must take steps to protect public interest:
1. prevent price gouging by any emerging monopoly carrier
2. enhance competition in the domestic market
3. Maintain Canadian ownership and control of the industry
4. Maintain service to small communities
ensure fair treatment of employees.
Otherwise, the government will discuss cabotage with the United States.
If you live in western coast, maybe you know a new star - WestJet. Using Southwest's low cost, low fair strategy, this company grew up in niche market in western Canada. It's the only profitable airline company in Canada. Faced this threaten, Air Canada even thought about organizinag a subsidiary with same strategy. But beauracracy, especially UNION, made this plan fail.