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15-Nov-2014 2:47 AM

ULCCs Canada Jetlines & Jet Naked struggle to build adequate warchests in a competitive marketplace

Analysis

Two upstart ULCCs aiming to execute the model within Canada - Canada Jetlines and Jet Naked - have gone somewhat quiet since making a splash earlier in 2014 with their plans to interject a new level of competition within the Canadian market place.

Many airlines with similar plans have come and gone, leaving Air Canada and WestJet in a comfortable duopoly, that on paper, seems ripe for breaking.

But many of the market dynamics that have driven other Canadian start-ups out of business still exist, and the country's tenuous economy could make it difficult for the new airlines to attract investors for what is still a risky business venture.

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