Canadian airline market on path to consolidation, raising risk of higher fares

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After entertaining new entrants for several years, Canada's airline market is once again tracking toward consolidation, raising the likelihood of higher fares and fewer flight options.

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.

“The high fees certainly make it more challenging for the discount carriers," said University of Manitoba transport institute director Barry Prentice. "There is no interest by the big carriers in having low-cost carriers succeed, and they'll use the tools that they've got in the toolkit to try and bring carriers like Lynx to an end," he claimed.

A lack of big, secondary airports in large cities can also force smaller airlines to bid for the higher-priced slots at Toronto's Pearson and Montreal's Trudeau airports. Executives have long complained about amounts charged for gate and landing fees as well as federal agency expenses such as security screening and air navigation.

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