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Porter attempts to determine its place in Canadian aviation as rivals move into new endeavours

Analysis

Porter Airlines seems to be instituting a slight strategy shift as its main rivals Air Canada and WestJet turn their attention to the respective launches of their new subsidiaries. While Porter appears largely protected from direct competitive threats from either enterprise, the carrier has recorded dwindling load factors, perhaps an effort to trade loads for yields.

The shift follows increasing competitive pressure in some of Porter's busier business markets in Canada's eastern triangle (Toronto-Montreal-Ottawa) after WestJet during 2012 bolstered its frequencies on those routes along with introducing new transborder service from Toronto to New York LaGuardia. Air Canada has repeatedly stated its unit revenues have come under pressure in those markets as competitors increased capacity in those regions.

From its base at Toronto City Centre Porter serves the busy US northeastern transborder markets of Boston, New York (Newark) and Washington (Dulles). The carrier also operates its 70-seat Q400 turboprops to Chicago Midway.

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