Air Canada(AC) is the flag carrier of Canada. And recently it was granted a 4-star airline by Skytrax. Although some people don't like it so much, personally my AC experience was above average. The economy class of Boeing 777-300ER is comfortable with 18.5 inch wide seat(in 3-3-3 configuration shown as below) and 32' pitch. I will also enjoy 2 meals and a quick snack in this long flight. It allows 2 piece of carry-on baggage and 1 piece of checked baggage at 50lbs. Therefore I don't bother to sit on it for 8 hours.

For domestic flight connecting to Osaka, I don't really bother with the size of the aircraft nor the seat comfort, since it is a short flight for 1 hour 15 min.

The sample ticket shows a fare of $1671 in 2014, which is below the budget.

RAILWAY AND BUSES

In Kansai, I can purchases passes for railway or buses. It is 2000 Yen  for JR networks and another 2000 Yen for all other non-JR trains and buses.

The other option would be single fare. A typical Osaka-Kyoto will cost 540 Yen for JR fast train(25min arrival) and 390 Yen(40min) for other carriers. 

The buses usually charge 200 Yen for stops in Kyoto Downtown 

In general the average cost of transportation will be less than 2500 Yen a day, which will equal $26 per day

The transportation cost could be 20-50 dollars higher than original budget.

For more railway information, http://www.kansai.gr.jp/en/

For buses information, http://cn.japan-guide.com/articles/getting-around/kyoto (website in Simplified Chinese)