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11 Ions air and rail air carriers air fares Air Mode air pricing air revenues air subsidy allocation of resources Canadian Transport Commission capital subsidies carrier pricing consumer surplus Corridor declines economies of scale efficiency and effectiveness efficiency and/or effectiveness fare structure fixed costs full cost recovery haul fares incentive fares incentive towards operational increased lead to overexpansion Long Distance Routes long haul mainline carriers marginal cost pricing Medium Haul Ministry of Transport's Montreal/Ottawa/Toronto numbers Ontario overall rail overexpansion of facilities Passenger Mile Cents passenger services PASSENGER TRANSPORT SUMMARY patronage and quality perfect competition pricing and subsidy pricing structures promote efficiency and/or quality of service rail and air rail mode RAIL PASSENGER TRANSPORT rail pricing rail travel regional carriers respect to patronage run marginal short haul subsidy is provided SUBSIDY OF AIR Subsidy per Passenger subsidy programs subsidy scheme Table Typical City Pairs unit subsidy users variety of incentive