The ever-growing demand for air travel in Western Canada has prompted new, ultra low-cost airlines to be established there. Air transportation services have been rapidly developing in Canada, paving the way for a new line that is much more affordable for everyone. Two new airlines, Jet Naked and Jetlines, are set to launch within two years if they raise enough startup capital.
These new lines will offer routes to less-frequented areas for a far less expensive fee than some of the big name airlines. While they both will charge basic fees for luggage and snacks, passengers will still be saving a lot of money.
The implementation of two new airlines comes after a report that shows dramatically higher numbers of airline users in Western Canada than the rest of Canada – and that number is only going to grow. If these two very affordable airlines begin operating in the next two years there could be an industry-wide drop in ticket prices.
With two major airlines being established that offer much lower ticket prices, competition will force other airlines to lower their rates in order to keep their customers. This will certainly influence the rest of Canada’s airlines and may trickle throughout the rest of the continent. While reduced ticket prices may negatively affect the industry’s profitability, having lower prices will also attract people who do not normally fly. This will in turn expand the industry as a whole rather than limiting it.
While this may sound like a fantastic plan for those in Western Canada, there have been multiple airlines that adopted a low-cost business model that have failed in recent years. The key to the new airlines’ success is being able to offset costs without raising ticket prices. The next two years may prove to be very innovative and progressive for Western Canada’s airline industry.