Home
 
Choose Your City
Change City

Cheap flights could take wing with new airline

Air Canada’s reported plans to launch a discount carrier could dish up competitive headaches for its rivals and lower airfares to vacation spots in Mexico, the Caribbean and Europe, industry analysts say.

Air Canada’s reported plans to launch a discount carrier could dish up competitive headaches for its rivals and lower airfares to vacation spots in Mexico, the Caribbean and Europe, industry analysts say.

Chris Murray of PI Financial Corp. says a new airline would ramp up pressure on the industry to reduce fares, at least until a rival is driven out of business.

“In the short run there may be some bargains, though I wouldn’t expect it to be driving fares down to the craziness like we’ve seen before, the $1 to London flights,” he says.

Air Canada is reportedly drawing up a plan to deploy four Boeing 767s and six Airbus A319s, with the fleet increasing to 50 planes. The delivery of 37 Boeing 787 Dreamliners would allow the airline to transfer older planes to the new airline.

Neither Air Canada nor the pilots’ and employees’ unions would comment on the rumours.

But Pierre Tessier, spokesman for Transat AT, said consumers stand to benefit if the new carrier adds more seats to the market. “There’s always been a lot of competition in the market and we’re used to that,” he said.

 
Consider AlsoFurther Articles