A foreign carrier in the Canadian market probably wouldn't have cheaper prices than Westjet and Air Canada. Westjet's profit is only 5-6-7% of revenue, so the reasons that Canadian airfares are more expensive than the US/Europe isn't due to price gouging.
Canada has long flight lengths, high labour costs, high fuel costs, high landing fees and AIF's priced into a ticket. I guess you could say that air travel in Canada is unsubsidized by our government(s) Any foreign carrier would have to pay all those same fees/taxes as Westjet and Air Canada and would end up charging very similar prices.
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