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subsidization

    Business Politics

    Captive market: Understanding Nunavut’s complex airline industry

    The territory of Nunavut is vast expanse of beautiful, unspoiled nature. It has a population of 34,000 and is roughly the size of Europe. Compared to other places, it’s a lot of space for very few people.

    With no roads or railways connecting any of the communities, transportation is a very important issue.

    The capital, Iqaluit, is about 2,500 kilometres north of Ottawa. It’s three hours away by flight, making it very isolated from the rest of Canada. It’s an expensive place to live, too. Sealift cargo is limited to a few months a year, so most things – and people, too – have to be flown to Nunavut. Naturally, airfare has an important impact on the cost of living.

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