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Shrinking airfield: Canada's airline market consolidates, raising risk of fares hikes

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MONTREAL — 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.

MONTREAL — 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 fewer competitive entities you have in Canada, the less pressure you have to be price-competitive," Gradek said. While big cities remain amply served, smaller ones have fewer options, which can also result in higher prices and, when things go awry, stranded passengers. "In recessionary periods, there's a lot of airplanes suddenly on the market at a low cost," said Barry Prentice, director of the University of Manitoba's transport institute.

 

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