Consolidation in Canada's Airline Market Raises Fears of Higher Fares and Fewer Flight Options

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Canada's airline market is heading towards consolidation, which could lead to higher fares and fewer flight options. Low-cost carriers Swoop and Lynx Air have disappeared, and WestJet has acquired Sunwing Airlines. Experts warn that this consolidation may result in less service and higher prices, especially in the West and smaller markets across the country.

After entertaining new entrants for several years, Canada's airline market is once again on the path to consolidation, raising the likelihood of higher fares and fewer flight options. Since May, newer low-cost carriers Swoop and Lynx Air have disappeared from the skies and WestJet has scooped up Sunwing Airlines.

The latter two alone made up 37 per cent of seat capacity on direct flights to sun destinations and 72 per cent from Western Canada last year, according to an October report from the Competition Bureau. It said eliminating the rivalry between WestJet and Sunwing would likely suppress competition around the sale of vacation packages. Some experts warn that the shrinking airline tally could mean less service and higher prices, particularly in the West and smaller markets across the country.High airport rents, security fees and fuel taxes raise the baseline cost of flying, making it harder for budget airlines to coax budget-conscious Canadians on boar

 

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