Many new airlines have attempted to break into Canada’s highly competitive aviation scene, but few have managed to secure a market share, as demonstrated most recently by Canada Jetlines’ decision to temporarily suspend operations due to an aircraft crisis.
“Canada Jetlines announced today that it will temporarily cease operations effective August 15, 2024,” it said in a press release, citing its inability to obtain the financing needed to continue operations.
“Every effort is being made to assist passengers at this time. Passengers with existing bookings are advised to contact their credit card company to request a refund for pre-booked travel.”
The company announced that it intends to seek creditor protection.
Curiously, Canada Jetlines does not appear to have posted a statement on its website – or even its social media accounts – about ceasing operations on August 15, even though its booking engine does not show any flight options.
Canada Jetlines, based in Mississauga, Ontario, operates Airbus A320. Image: Canada Jetlines
Canada Jetlines is just the latest in a string of low-cost carriers (LCCs) and ultra-low-cost carriers (ULCCs) to fall victim in Canada. The market is dominated by Air Canada and WestJet, but is in desperate need of competition, as your author, a Canadian citizen, can attest.
Lynx, we hardly knew you
Calgary-based Lynx Air, identified as ULCC, offered domestic flights with a fleet of Boeing 737 MAX aircraft and had its sights set on international routes.
The carrier impressed with its intuitive and transparent website and fee structure. However, it ceased operations in February 2024 after only two years of service.
Lynx offered low-cost flights with twin-engine Boeing 737 MAX aircraft. Image: Jeremy Dwyer-Lindgren
“The increasing financial pressures from inflation, fuel costs, foreign exchange rates, capital costs, regulatory costs and competitive pressures in the Canadian market have ultimately proven to be too steep a mountain for our company to overcome,” Lynx said in an online statement.
Take Swoop
Swoop, also based in Calgary, began operations in 2018 and claimed to have developed the ULCC business model in Canada. However, after five years of operation, the company was acquired by parent company WestJet and ceased to exist on October 28, 2023.
When asked by Runway Girl Network about WestJet’s plans to offer cheaper fares to Canadians, the airline assured, “Swoop’s highly successful business model will be implemented across WestJet’s operations.” But a quick search of WestJet’s website today suggests that many of those cheap fares have gone the way of the dodo.
For example, WestJet’s Toronto-Halifax and Toronto-Calgary fares are currently comparable to Porter Airlines’ fares, with only a few dollars difference. But Porter, based at Toronto’s Billy Bishop Airport, offers free wine, beer and premium snacks in economy class – and free Wi-Fi on its new Embraer E195-E2 twin-jets!
Air Canada recently started offering free snacks on some flights to compete with Porter. WestJet has not yet introduced this offer.
Scoop served destinations throughout North America and the Caribbean. Image: Becca Alkema
NewLeaf may be a company that few people remember. The company outsourced the actual transportation of passengers to Flair Airlines and was acquired by Flair in July 2017.
The flair is still there
Flair has managed to survive, but not without challenges. The airline, headquartered in Edmonton, Alberta, faced questions about Canadian ownership in the spring of 2022, but in June of that year the government confirmed that Flair is indeed Canadian.
In March 2023, Flair had four aircraft seized for non-payment and some routes canceled, but the company quickly recovered. Today, Flair is Canada’s third-largest airline after Air Canada and WestJet.
Flair operates a fleet of exclusively Boeing 737 MAX economy aircraft. Image: Jane Abraham-Dunn
Commenting on Canada Jetlines’ fate, Flair CEO Maciej Wilk said the news “only strengthens Flair’s resolve. We recognize our critical role in providing Canadians with affordable and reliable air travel. Our commitment to streamlining our operations, innovating in network planning and remaining flexible in the face of external challenges remains unwavering.”
He added:
Flair’s mission has always been to drive market competition and ensure Canadians have access to the lowest fares possible. We are more determined than ever to keep that promise. Competition in Canadian aviation is not just important – it is essential.
Flair has taken a leading role in taking on the Big Two and will continue to do so with resilience, dedication and a clear focus on efficiency.
We will honour the competitive spirit that Canada Jetlines has fostered by continuing to push the boundaries of what is possible, staying true to our mission and ensuring Flair remains a popular choice for travellers across Canada.
Still coming?
Planned start-up Connect Airlines, which planned to offer cross-border flights from Toronto Billy Bishop in 2021 using Q400 turboprops, is working to launch a refined version of the premium leisure service later this year, although talks with the US FAA are ongoing. Planned destinations include Boston, Chicago and Philadelphia.
Connect is working closely with Canadian charter operator Pivot Airlines, in which it now has partial ownership (PDF), and ultimately the company hopes to help decarbonize regional travel.
“Connect’s bright future includes the introduction of hydrogen-powered, zero-emission passenger aircraft in just a few years, which will transform the regional airline market and enable smarter, greener travel. Pivot will be a core part of Connect’s hydrogen aircraft plans,” Connect CEO John Thomas told RGN.
We wish you much success.
Connect promoted a more environmentally friendly way to fly with Bombardier Q400 turboprops. Image: Connect Airlines
What is clear from the recent carnage in Canadian aviation mentioned above is that Canadians have fewer options for travel. And that is unfortunate no matter how you slice it.
Courtesy of Canada Jetlines
