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Why airfares in Canada aren’t as low as in the U.S.

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U.S. airfares in January reached a 15-year low — excluding peak pandemic fares — but while our two countries have a lot in common, experts say Canadian travellers shouldn’t expect the same deep discounts here.

Despite the cost of living in North America creeping upward in most other respects, airfares in the United States were down 6.4 per cent in January compared to the same month in 2023.

Not only were ticket prices down year-over-year, they were actually three per cent lower than pre-pandemic airfares in January 2020, and down 15 per cent compared to a decade ago, according to consumer price index data from the U.S. Bureau of Labor Statistics published in February. In fact, prices in January were the lowest they’ve been in the U.S. in 15 years, excluding during the peak pandemic years, when air travel slowed to a trickle.

In Canada, airfares fell 14 per cent in January compared to the same month in 2023, and 23.7 per cent compared to December 2023, but still sat at 10 per cent above pre-pandemic levels in 2019, according to Statistics Canada.

John Gradek, head of the aviation management program at McGill University, said January’s drop coincides with seasonal travel patterns – January typically represents a slump for the industry as holiday travel demand gives way to post-holiday homebody habits. Not only is it likely to be temporary, but he said it caps off a year of low airfares and is probably the last time we’ll see prices drop in Canada for awhile.

“Going forward, when we look at the consumer price index for March, April and May, the air transportation component of the index, will show a reversing trend and we’ll see fares go back up again,” Gradek told CTVNews.ca in a telephone interview on Friday.

“You’re seeing, even today, significant increase in the price levels across Canada.”

Competition is key

Competition between airlines has been a major factor driving down airfares throughout 2023 and early 2024, Gradek said.

Last year was a boon for commercial flight in both countries as travellers made up for time lost during the pandemic. According to the American Express Global Business Travel Air Monitor 2024 report, Canadians took more than 10 million trips abroad between January and April 2023 – a seven per cent increase compared to the same period in 2019. At the same time, inflation and rising costs of living threatened to put an end to the honeymoon as would-be travellers tightened their belts.

In both countries, low-cost carriers competed against one another and the larger, more established airlines for a share of the market, offering attractive fares and forcing their competitors to do the same. In the U.S., those airlines include budget carriers like Frontier, Spirit and Allegiant.

“The U.S. is seeing very aggressive competitive posturing by guys like Frontier, Spirit, Allegiant,” Gradek said. “They are aware that the economy has slowed down and that there’s less disposable income…so they’re being very aggressive in the marketplace by pricing products that would attract people who have a lesser availability of discretionary income.”

Similarly, budget airlines Flair and Lynx each vied in 2023 to become Canada’s lowest-cost carriers, Gradek said, and airfares dropped significantly as Air Canada and WestJet tried to match them.

A passenger walks by an empty Lynx Air check-in counter at the international airport in Calgary on Friday, February 23, 2024. Officials with the Calgary-based company announced Thursday evening that it is ceasing operations, effective at 12:01 a.m. MT on Feb. 26, 2024, after filing for creditor protection. (THE CANADIAN PRESS/Todd Korol)

However, less than two years after its inaugural flight, Calgary-based Lynx Air filed for creditor protection and ceased operations last month, citing “the compounding financial pressures associated with inflation, fuel costs, exchange rates, cost of capital, regulatory costs and competitive tension in the Canadian market.”

Since then, Gradek said, airfares have begun to creep up.

‘Totally different’ markets

Even had Lynx not shut down last month, Gradek and Ken Whitehurst, executive director of the Consumers Council of Canada, both caution that competition can only go so far toward lowering airfares.

The reality is that certain elements of the Canadian market will always keep airfares higher here than in the U.S.

“The Canadian and U.S. airline markets are totally different,” Whitehurst told CTVNews.ca in a telephone interview on Friday. These differences, he said, make it hard to compare the two.

“The U.S. has simply more carriers and Canada has a lot fewer carriers, and even fewer that actually want to fly everywhere in Canada. So that’s been a historic challenge, particularly if the country wants to have an airline industry of its own.”

In addition to being a smaller market with fewer carriers to choose from, Canada’s physical size makes air travel more expensive, since there’s so much distance between major Canadian cities. Because of its size, as Whitehurst pointed out, smaller carriers tend to prefer offering regional, rather than cross-country routes.

Canada also has less air-travel infrastructure than the U.S., as well as different airport fee and tax structures, Gradek explained.

“It’s expensive to fly in Canada. There’s no doubt about it,” he said.

“I would recommend Canadians kind of shy away from doing a direct comparison between Canada and the U.S.. Do your shopping in Canada, compare the different fares, beware of hidden charges for baggage and fees, but really, enjoy travelling in Canada. We still have a pretty good system that’s in place and fares are still reasonable.”

Still, Whitehurst said Canadian consumers would benefit from more transparency when it comes to pricing, something he said went to the wayside when Canada deregulated the industry more than 40 years ago.

“There’s still this lingering question (of) whether we really know if consumers are getting the best deal that they can get,” he said.

“We don’t know because we just don’t have the level of regulation anymore that gives us insight into airline costs.”

By contrast, when it comes to natural gas and electricity utilities, he said the public has access to a breakdown of companies’ costs in order to better understand the basis for their rates. This is not the case with aviation in Canada.

“There should be a lot more validation with the Canadian consumer that they are getting fair value and good service,” Whitehurst said.

 

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Alaska man charged with sending graphic threats to kill Supreme Court justices

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WASHINGTON (AP) — An Alaska man accused of sending graphic threats to injure and kill six Supreme Court justices and some of their family members has been indicted on federal charges, authorities said Thursday.

Panos Anastasiou, 76, is accused of sending more than 465 messages through a public court website, including graphic threats of assassination and torture coupled with racist and homophobic rhetoric.

The indictment does not specify which justices Anastasiou targeted, but Attorney General Merrick Garland said he made the graphic threats as retaliation for decisions he disagreed with.

“Our democracy depends on the ability of public officials to do their jobs without fearing for their lives or the safety of their families,” he said.

Anastasiou has been indicted on 22 counts, including nine counts of making threats against a federal judge and 13 counts of making threats in interstate commerce.

He was released from detention late Thursday by a federal magistrate in Anchorage with a a list of conditions, including that he not directly or indirectly contact any of the six Supreme Court justices he allegedly threatened or any of their family members.

During the hearing that lasted more than hour, Magistrate Kyle Reardon noted some of the messages Anastasiou allegedly sent between March 2023 and mid-July 2024, including calling for the assassination of two of the Republican-appointed Supreme Court justices so the current Democratic president could appoint their successors.

Instead of toning down his rhetoric after receiving a visit from FBI agents last year, Anastasiou increased the frequency of his messages and their vitriolic language, Reardon said.

Gray-haired and shackled at the ankles above his salmon-colored plastic slippers, Anastasiou wore a yellow prison outfit with ACC printed in black on the back, the initials for the Anchorage Correctional Facility, at the hearing. Born in Greece, he moved to Anchorage 67 years ago. Reardon allowed him to contact his elected officials on other matters like global warming, but said the messages must be reviewed by his lawyers.

Defense attorney Jane Imholte noted Anastasiou is a Vietnam veteran who is undergoing treatment for throat cancer and has no financial means other than his Social Security benefits.

She told the judge that Anastaiou, who signed his own name to the emails, worried about his pets while being detained. She said he only wanted to return home to care for his dogs, Freddie, Buddy and Cutie Pie.

He faces a maximum of 10 years in prison for each count of making threats against a federal judge and up to five years for each count of making threats in interstate commerce if convicted.

Threats targeting federal judges overall have more than doubled in recent years amid a surge of similar violent messages directed at public officials around the country, the U.S. Marshals Service previously said.

In 2022, shortly after the leak of a draft opinion overturning Roe v. Wade, a man was stopped near the home of Justice Brett Kavanaugh with weapons and zip ties.

___

Thiessen reported from Anchorage, Alaska.

The Canadian Press. All rights reserved.



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An iconic Churchill photo stolen in Canada and found in Italy is ready to return

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ROME (AP) — Canadian and Italian dignitaries on Thursday marked the successful recovery of a photo portrait of Winston Churchill known as “The Roaring Lion,” stolen in Canada and recovered in Italy after a two-year search by police.

At a ceremony at the Canadian Embassy in Rome, Italian carabinieri police handed over the portrait to the Canadian ambassador to Italy, Elissa Goldberg, who praised the cooperation between Italian and Canadian investigators that led to the recovery.

The 1941 portrait of the British leader taken by Ottawa photographer Yousuf Karsh is now ready for the last step of its journey home to the Fairmont Château Laurier, the hotel in Ottawa where it was stolen and will once again be displayed as a notable historic portrait.

Canadian police said the portrait was stolen from the hotel sometime between Christmas 2021 and Jan. 6, 2022, and replaced with a forgery. The swap was only uncovered months later, in August, when a hotel worker noticed the frame was not hung properly and looked different than the others.

Nicola Cassinelli, a lawyer in Genoa, Italy, purchased the portrait in May 2022 at an online Sotheby’s auction for 5,292 British pounds. He says he got a phone call from the auction house that October advising him not to sell or otherwise transfer the portrait due to an investigation into the Ottawa theft.

Cassinelli, who attended Thursday’s ceremony, said he thought he was buying a regular print and quickly agreed to send the iconic Churchill photograph home when he learned its true story.

“I immediately decided to return it to the Chateau Laurier, because I think that if Karsh donated it to the hotel, it means he really wanted it to stay there, for the particular significance this hotel had for him, and for his wife too,” Cassinelli told The Associated Press.

The famous image was taken by Karsh during Churchill’s wartime visit to the Canadian Parliament in December 1941. It helped launch Karsh’s career, who photographed some of the 20th century’s most famed icons, including Nelson Mandela, Albert Einstein and Queen Elizabeth.

Karsh and his wife Estrellita gifted an original signed print to the Fairmont Chateau Laurier in 1998. The couple had lived and operated a studio inside the hotel for nearly two decades.

Geneviève Dumas, general manager of the Fairmont Château Laurier, said on Thursday she felt immensely grateful.

“I would like to extend my deepest gratitude to everybody involved in solving this case, and ensuring the safe return of this priceless piece of history.”

Police arrested a 43-year-old man from Powassan, Ontario, in April and have charged him with stealing and trafficking the portrait. The man, whose name is protected by a publication ban, faces charges that include forgery, theft over $5,000 and trafficking in property obtained by crime exceeding $5,000.

The Canadian Press. All rights reserved.



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Mexican president blames the US for bloodshed in Sinaloa as cartel violence surges

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CULIACAN, Mexico (AP) — Mexican President Andrés Manuel López Obrador blamed the United States in part on Thursday for the surge in cartel violence terrorizing the northern state of Sinaloa which has left at least 30 people dead in the past week.

Two warring factions of the Sinaloa cartel have clashed in the state capital of Culiacan in what appears to be a fight for power since two of its leaders were arrested in the United States in late July. Teams of gunmen have shot at each other and the security forces.

Meanwhile, dead bodies continued to pop up around the city. On one busy street corner, cars drove by pools of the blood leading to a body in a car mechanic shop, while heavily armed police in black masks loaded up another body stretched out on a side street of the Sinaloan city.

Asked at his morning briefing if the U.S. government was “jointly responsible” for this violence in Sinaloa, the president said, “Yes, of course … for having carried out this operation.”

The recent surge in cartel warfare had been expected after Joaquín Guzmán López, a son of former Sinaloa cartel leader Joaquín “El Chapo” Guzmán, landed near El Paso, Texas on July 25 in a small plane with Ismael “El Mayo” Zambada.

Zambada was the cartel’s elder figure and reclusive leader. After his arrest, he said in a letter circulated by his lawyer that he had been abducted by the younger Guzmán and taken to the U.S. against his will.

On Thursday afternoon, another military operation covered the north of Culiacan with military and circling helicopters.

Traffic was heavy in Culiacan and most schools were open, even though parents were still not sending their children to classes. Businesses continue to close early and few people venture out after dark. While the city has slowly reopened and soldiers patrol the streets, many families continue to hide away, with parents and teachers fearing they’ll be caught in the crossfire.

“Where is the security for our children, for ourselves too, for all citizens? It’s so dangerous here, you don’t want to go outside,” one Culiacan mother told the Associated Press.

The mother, who didn’t want to share her name out of fear of the cartels, said that while some schools have recently reopened, she hasn’t allowed her daughter to go for two weeks. She said she was scared to do so after armed men stopped a taxi they were traveling in on their way home, terrifying her child.

During his morning press briefing, López Obrador had claimed American authorities “carried out that operation” to capture Zambada and that “it was totally illegal, and agents from the Department of Justice were waiting for Mr. Mayo.”

“If we are now facing instability and clashes in Sinaloa, it is because they (the American government) made that decision,” he said.

He added that there “cannot be a cooperative relationship if they take unilateral decisions” like this. Mexican prosecutors have said they were considering bringing treason charges against those involved in the plan to nab Zambada.

He was echoed by President-elect Claudia Sheinbaum, who said later in the day that “we can never accept that there is no communication or collaboration.”

It’s the latest escalation of tensions in the U.S.-Mexico relationship. Last month, the Mexican president said he was putting relations with the U.S. and Canadian embassies “on pause” after ambassadors criticized his controversial plan to overhaul Mexico’s judiciary by requiring all judges to stand for election.

Still, the Zambada capture has fueled criticisms of López Obrador, who has throughout his administration refused to confront cartels in a strategy he refers to as “hugs not bullets.” On previous occasions, he falsely stated that cartels respect Mexican citizens and largely fight amongst themselves.

While the president, who is set to leave office at the end of the month, has promised his plan would reduce cartel violence, such clashes continue to plague Mexico. Cartels employ an increasing array of tactics, including roadside bombs or IEDs, trenches, home-made armored vehicles and bomb-dropping drones.

Last week, López Obrador publicly asked Sinaloa’s warring factions to act “responsibly” and noted that he believed the cartels would listen to him.

But the bloodshed has only continued.

The Canadian Press. All rights reserved.



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