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Todayville Travel: A ‘soft egg’ in the Nahanni Pt. 1

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This is the first in a three-part Yukon road trip series.

In German weichei means soft egg. It defines a person’s character. In Canada we call them wimps. Charly Kudlacek is from Frankfurt, Germany and, as eggs go, is hard-boiled. We met Charly and his wife Marion in a remote campground at Summit Lake on the British Columbia portion of the Alaska Highway. The place is so-named because of its location on
the highest point of this international byway.

The “Alcan” starts in Dawson Creek, BC and ends 2237 kilometers later in Delta Junction, Alaska. Remarkably the highway was built in just eight months during 1942, designed to stave off a possible World War II Japanese invasion. Although June was nigh, Summit Lake was still covered in ice. We arrived late evening and set up camp. A solitary beaver, freshly emerged from winter lodging, coolly went about its business. Canadian summers are brief. We Albertans tend to enjoy them near home, with perhaps a visit to the mountains or a couple of weeks sunning and boating on a warm lake
in the Okanagan. I’d never been north of Grande Prairie, so we decided it was time to see more of Canada in its season of warmth; the great white north converted green by boreal springtime.

The Alaska Highway’s largest wooden bridge near Dawson Creek, BC.

My trip planning is poor: peruse a map, devise a vague strategy, perhaps talk to a couple of friends who have been to the parts unknown. I’ve attempted advance planning – reading about the sights, the flora, the fauna – but somehow it just doesn’t sink in for me until the experience actually happens. I learn as I go, waiting to see what’s around the next corner.

Charly was apologetic. “In former times I was not so slow and the distance would be much greater.”

A stranger at a campground in Fort Nelson told us about a bush pilot who flew floatplane charters from Muncho Lake, B.C. to remote Virginia Falls in Nahanni National Park, in the Northwest Territories. I had no idea where Muncho Lake was. I checked the map and found it was two days up the road, directly on our path to the Yukon. I phoned and spoke to Marianne of Northern Rockies Lodge. She and her husband, Urs the bush pilot, own this beautiful spot on Muncho Lake. “Urs is in Vancouver getting the
floatplane ready for the season,” said Marianne in a thick Swiss accent. “The lake still has ice and he can’t land until it clears. Perhaps call again in a day or two.”

That was the night we camped at Summit Lake and met Charly and Marion. I asked them if they’d like to join us on a trip to Virginia Falls – if the ice cleared and Urs could fly in. I waxed eloquently, inflating my meager knowledge of the Nahanni (which I had gleaned from a guide book fifteen minutes earlier). The floatplane seats nine and Marianne had told me Urs wouldn’t fly with less than four paying customers. Germans have a propensity for austerity exceeded only by Scots, so I was not optimistic that our Alaska Highway adventure would include a spur-of-the-moment side trip to the Northwest Territories.

“We shall sleep on this,” announced Charly. In the morning crispness Charly informed me in a precise clip that, “Marion and I have slept on this and agree that we shall join you if the conditions permit.” We spent the next two days in the company of our newfound German friends, enjoying wonderful hiking in this remote corner of northeastern BC, enchanted by the sight of moose, grizzly bear, stone sheep, caribou, wood bison, and a countless variety of flying creatures.

Charly and Marion have made five trips to Canada. They have seen more of our home and native land than have I – an embarrassing admission. They never arrive unprepared. Their well-appointed rental camper van was fully equipped, except for an axe. Charly brought his own finely-edged Fiskar from Germany. After a particularly tiring day-hike up a melting mountain creek, Charly asked if I would like to join him for a short run down the highway. Naturally, I was stupid enough to acquiesce. 10 kilometers and an hour later I stumbled back to camp, lamely following his tireless legs.

Charly was apologetic. “In former times I was not so slow and the distance would be much greater.” When I collapsed into bed that night Charly was alternating between calisthenics and wood chopping. In the morning I stumbled out into the bright sun and found him washing in the cold creek. He’d been up for hours, eaten his morning repast of eggs, meat, cheese,
tea, fruit and five pieces of bread and had completed 50 pushups and 100 sit-ups. Then he buckled down to real breakfast: a hearty bowl of Muesli.

Charly surveys a dicey path on the rotting ice

Did I mention that Charly is older than I? He is no weichei. They say the Irish (my heritage) would rule the world were it not for Guinness. After
observing Charly for a few days I have concluded that there is somewhat more to the equation. When we arrived at Muncho the lake was still half frozen and, crucially, ice still surrounded the lodge where the plane was to land. But Marianne told us Urs was en route from Vancouver and would be arriving soon. Sure enough, as we set up camp, a canary-yellow de Havilland floatplane droned overhead.

Marion is no weichei either

In the morning Urs told us that the landing had been dicey. He had spent a good portion of the night breaking a slushy path to get the plane ashore. “Night” doesn’t mean dark here in late May. The sun sets after 11 pm and is up again by 4 am. The interval is simply dusky. “What about tomorrow?” I asked Urs. “Can we fly to the Nahanni?” Urs is a big man, clad always in blue jeans and red suspenders. His name means “bear” in Swiss German. He looked at me, then warily at the lake. A wind had come up. We could
see a wide river of rotten ice moving northward. Open water was within 300 meters of the Lodge. “Perhaps… if the wind continues and does not reverse direction.” I crossed my fingers. Our window of opportunity was closing. Charly and Marion had only one day to spare before continuing on to Whitehorse, Yukon. Our schedule was more relaxed, but without them we couldn’t do the charter.

 

Urs wouldn’t be caught dead without his red suspenders

In the morning the ice had moved. It was a bluebird day. But still Urs was worried. He would decide at noon. I’m not renowned for my patience; but I am a biblical Job next to Charly who paced the morning away, unable to control the situation, awaiting word from Urs. “Impatience. This is a minus point for me,” Charly admitted.

A stone sheep casts a stony gaze

In the past I’ve mentioned a phenomenon known as “the Feehan thing”. This entails arriving at the last possible moment, uninformed, ill-prepared, sans reservation, but expecting top-notch service. Invariably it works like a charm. At noon Urs announced the flight was a go.

The de Havilland sits ice-free in Muncho Lake


He gently lifted the retrofitted 1959 de Havilland off the emerald waters of Muncho Lake and banked over the Lodge. Our hour and a half flight crossed the BC border at 60 degrees north, swiping a corner of the Yukon Territory before entering the NWT. Urs treated us to a spectacular 360-degree view of Virginia Falls before landing upstream of the cascade. He touched the plane down softly, wary of deadheads floating down the swollen Nahanni River. We were Nahanni’s first visitors of the year, arriving even before Parks Canada set up camp for the season.

The Falls, a world-renowned UNESCO site, are twice the height of Niagara Falls. An icy spring pillar hung precariously down the center of the water’s 102-meter descent. Downstream the torrent curved through ochre cliffs en route to its confluence with the Mackenzie River and the Arctic Ocean three thousand kilometers away. Our stay in the Nahanni was brief – after just a few hours aground we were skimming back up off the river. Urs offered us a last spectacular glance at the Falls. Then the old plane banked southward, skirting vast unexplored ridges of the Northwest Territories. In the early evening light, the northern-most tip of the Rocky Mountains appeared, signaling our return to British Columbia.

Virginia Falls roars with Nahanni’s spring melt

It was well past 8 pm when the de Havilland touched down perfectly on the calm waters of Muncho Lake. The sun was still high in the sky. We hopped from the plane’s floats to the dock and bid goodbye to our German friends. Before heading down the road Charly offered a heart-felt hug – confirming that, inside, all good eggs are soft.

The Rocky Mountains end where B.C. meets the Yukon

Next time: Dawson City and the Dempster Highway

Gerry Feehan QC practised law in Red Deer for 27 years before starting his second life as a freelance travel writer and photographer. He says that, while being a lawyer is more remunerative than travel writing, it isn’t nearly as much fun. When not on the road, Gerry and his wife Florence live in Red Deer and Kimberley, BC. Todayville is proud to work with Gerry to re-publish some of his most compelling stories from his vast catalogue developed over more than a decade of travel.

Gerry Feehan

Thanks to these great sponsors for making this series possible!

Click here for an adventure with Gerry in Texas.

 

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Looming Air Canada strike highlights need for more competition in the air

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From the Fraser Institute

By Alex Whalen and Jake Fuss

Air travelers in Canada are facing a major disruption as Air Canada’s flight attendants threaten strike action. Air Canada says the strike could affect 130,000 passengers per day from coast to coast.

Currently, two airlines control between roughly half and three quarters of all air travel at Canada’s major airports. When either Air Canada or WestJet face a disruption, a large share of Canada’s overall air traffic is affected. In recent polls, a majority of Canadians have said they feel like Canada’s system of air travel is “broken”. Passengers experiencing hardship should cheer for more competition in Canada’s airline industry.

Increased competition has multiple benefits. When one airline inevitably faces a disruption, passengers would have more options to book with other carriers. Competition also tends to lead to lower prices and better service across the board for the customer, as power shifts away from the supplier and toward the consumer.

Unfortunately, Canada’s skies are largely sealed off from competition.

Due to restrictive federal rules known as “cabotage”, foreign airlines may fly to Canadian airports, but they cannot operate routes exclusively within Canada. For example, a foreign airline such as Delta can fly from New York to Toronto, but cannot then fly from Toronto to Montreal. This policy limits choice and competition within Canada.

In contrast, the European Union removed cabotage restrictions for member-states in the 1990s. The result? More competition (including from new low-cost carriers such as Ryanair), a 34 per cent decline in ticket prices (adjusted for inflation), more cross-border routes, and greater flight frequencies. The entry of new low-cost carriers alone helped lower airfares by 20 per cent.

But new entrants into the industry, including low-cost carriers, face significant barriers to entry in Canada, with foreign ownership restrictions compounding Canada’s competition problem. Currently, the Canada Transportation Act caps foreign ownership of Canadian airlines at 49 percent, and no individual foreign investor can own more than 25 percent of the voting shares.

Starting a new airline is obviously a big undertaking, in part because of the large amounts of capital required to acquire a fleet of airplanes. These rules limit the ability of new entrants to raise the necessary investment capital to compete in the Canadian market.

Loosening these restrictions was recently recommended by Canada’s Competition Bureau, which had been tasked with studying the dismal state of competition in Canada’s airline sector. Earlier this year, we authored a study published by the Fraser Institute which reviewed international best practices in airline policy. Based on this review, we recommended Canada remove foreign ownership restrictions, among numerous other recommendations where Canada is offside with peer countries, including the need for lower taxes and fees, changes to Canada’s airport ownership structure, and a more competitive regulatory burden.

The looming Air Canada strike is just the latest in a long list of regular disruptions faced by Canadian air travelers. While such disruptions may never be fully eliminated, government policy is making the situation worse than it needs to be. Cabotage and foreign ownership restrictions should be removed to provide consumers greater choice when it comes to air travel.

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Competition Bureau recommends bureaucratic power grab over airline industry

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From the Fraser Institute

By Matthew Lau

According to the Competition Bureau’s recent market study of Canada’s airline sector, “Competition delivers major benefits to Canadian travellers. Beyond lower prices, competition drives quality improvements and innovation.” This statement about economic competition is correct. Unfortunately, however, some of the Bureau’s other ideas about economic competition are fundamentally wrong and its poor proposals, which would damage the airline industry, are mixed in with beneficial proposals.

Let’s begin with what the Competition Bureau, a law enforcement agency that reports to the federal government, gets right. Three of the 10 recommendations in the Bureau’s market study relate to opening Canada’s airline sector to international competition. Allowing more international competition is an commonly proposed idea (including in a Fraser Institute study earlier this year) and a good one.

Specifically, the Bureau recommends raising the single-investor foreign ownership limit for Canadian airlines to 49 per cent, allowing 100 per cent foreign ownership for domestic-only Canadian airlines, and working with other countries to remove foreign competition restrictions. The Bureau also recommends reducing regulatory costs for northern operators to support northern and remote market access, and opening government contracts to as many bidders as possible to get better value for taxpayer dollars.

Alas, despite these good ideas for protecting or improving competition, the recommendation at the top of the Competition Bureau’s list is negative, founded on a poor understanding of economic competition, and places far too much faith in the power of government intervention to preserve or improve competition.

“We recommend adopting a system of parallel reviews,” reads the study. “Under this system, both the Commissioner of Competition and the Minister of Transport would conduct independent reviews. Either process could block a transaction, and deals could only proceed if they cleared both reviews.”

In other words, the Competition Bureau proposes the Commission of Competition (the head of the Bureau) have veto power over airline mergers and acquisitions. The stated intention is to disallow anti-competitive mergers or collaborations, but this appears to be a bureaucratic power grab that would block transactions that benefit airline passengers and likely reduce investment in the airline sector.

Speaking to a parliamentary committee last year, a deputy commissioner with the Bureau pointed out that it had opposed three airline mergers in recent years—all of which the federal government finally approved despite the Bureau’s opposition, although with onerous political conditions.

The Competition Bureau laments industry concentration (the degree to which a few large players serve a high proportion of the market), but as a Montreal Economic Institute analysis on airline competition noted, “both economic theory and empirical evidence suggest that it is barriers to entry rather than the size and number of firms in a market that matter.”

Indeed, this was a key economic insight explained by Joseph Schumpeter more than eight decades ago. Industry concentration is not inherently negative and may well result from suppliers and consumers freely making decisions with their own money. Government barriers to entry, which tend to cause industry concentration, is the real problem.

If economies of scale allow large airlines to operate more efficiently than small ones, airline passengers may well be better off when two airlines merge. Or, if an airline is financially distressed, its acquisition by another airline may allow it to continue operations and maintain services. And if airline investors realize they may not be able to eventually exit their investments by selling to other airlines, the long-run effect will be to reduce airline-sector competition and investment.

The Competition Bureau seems to grasp that barriers to entry, not concentration, are the problem by saying its goal “is not always to promote multiple carriers on every route” but rather to promote a competitive environment “where the best airline serves each route but knows it can be replaced.” Yet the Bureau’s hostility towards past airline mergers, as well as value-creating mergers in other industries, suggests it does not apply this thinking consistently and seeks to block even transactions that generate significant economic benefits.

The Bureau’s new report gets some things right, but more bureaucratic power over the airline industry will not help Canadians. The Competition Bureau simply should not have veto power over airline mergers and acquisitions.

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