Canada Post’s 19th century monopoly doesn’t fly in the 21st century

Want to understand what’s wrong with Canada Post and how to fix it? Let’s consider the following tale from science fiction.Imagine for a moment an alternative universe Canada, where a few things are different from our world. In this Canada, there is a government-owned airline, Dominion Air, which holds a legal monopoly on basic air travel. It’s the only airline allowed to carry economy-class passengers. But along with the monopoly, the government of alternative universe Canada has also imposed a series of service obligations on Dominion. These rules would be illogical in any other business, but everyone for some reason finds them to be normal and acceptable in air travel.

By law, Dominion Air must charge exactly the same price for all economy-class seats, regardless of a flight’s origin, destination or distance travelled. Whether you’re flying from Toronto to Montreal or Whitehorse to Fredericton, …