Watch out, Air Canada and West Jet: A new airline has entered the skies.
What happened: Canada Jetlines flew its inaugural flight from Toronto Pearson to Calgary yesterday, which will be the only route flown until the fleet expands beyond a single plane.
- With an aspirational fleet of 15, Jetlines aims to sell cheap flights with more frills than budget airlines, like daylight flight times and enough legroom for people above 5’2”.
Why it matters: By positioning itself as a mid-tier carrier, Canada Jetlines might have a better shot of profiting enough to survive in the long-term and keep airfare costs competitive.
Catch up: In the wake of the pandemic, budget airline challengers Flair and Lynx pushed into the market and have already helped drive down domestic prices of major carriers.
- As of writing, you can get a ticket from Toronto to Calgary on a Saturday in October from Air Canada for $155, which is barely pricier than budget rates.
Yes, but: These airlines have had a tough time making the numbers work. Flair Airlines was recently on the brink of being grounded until getting an emergency cash injection from an investor.
What they’re saying: The COO of Jetlines has been critical of its competitor's business models, telling The Canadian Press bargain prices “just don’t work and [aren’t] sustainable.”