Liability costs are also lower in Canada, which has the same level of social spending as the U.S., study authors said.

FORBES: Study Pins Higher U.S. Liability Costs On Lawyers, Court System

But its cofounders Michael Budman and Donald Green are talking up fares within Canada and to major U.S. cities that will be as much as 35% lower than prices on Air Canada.

FORBES: Reach For The Sky

The recent divergence between the two economies is partly explained by Canada's lower dependence on the battered telecoms and technology sectors.

ECONOMIST: Canada: Northern tiger loses growl | The