Canada-Asia aviation market: tough route dynamics persist

In many ways, the Canada-Asia aviation market is a study in contrasts. Asia, particularly China, remains one of the fastest growing aviation markets worldwide, both domestically and internationally. Yet the yield on routes between Canada and Asia remains depressed, and overcapacity remains an overhang.

There are other market distortions that make it difficult to make profits on trans Pacific routes, including caps in the Canada-China bilateral.

Those market dynamics are resulting in Canada's second largest airline, WestJet, adopting a cautious approach to determining the right time to launch trans Pacific flights. For now, WestJet does not have any immediate plans to enter the long haul trans Pacific market.

Most of the focus on the Canada-China market remains on origins in Western Canada, including Vancouver and Calgary. But Toronto and Montreal are also points of strength for airlines operating between Canada and Asia as ethnic populations continue to grow in those markets.