Canada's recent steps towards deregulation of its airline industry are incomplete and are far from secure. The US experience with airline deregulation provides useful information about the likely effects of the Canadian policy changes that were put into place at the beginning of 1988. The experience shows that airline deregulation is likely to result in substantial benefits for Canadian consumers through lower prices and more efficient and rational services to customers located away from the major cities. Airline safety will not be affected by deregulation. The lower air fares are likely to induce a reduction in automotive travel through the greater use of airplanes. This process will reduce overall traffic fatalities and the economic costs of travel accidents in Canada. The quality of services affecting travellers will most likely remain unchanged. Canadian airlines will be able to benefit from the development of technologies and the experiences of US airlines after the initial rapid expansion of travel following deregulation. They will thus avoid the problems concerning lost luggage, bookings, and pricing that beset US airlines in the early 1980s. It may also be expected that the application of pricing will rationalize airline operations under government jurisdiction, which may reduce airport congestion and delays. In the long run, such problems will be solved by privatizing these government functions and, possibly, facilities. The paper is discussed by W. Block (pp.204-208) and by R. Schwindt (pp.209-213).