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The pool of aspiring ULCCs in Canada grows. Is there room for three ultra discount airlines?

Analysis

During the past year the pool of upstart ULCCs in Canada has grown to three contenders vying to adopt the business models practiced by Allegiant and Spirit to the Canadian market place. Accompanying the growing number of new entrants are executive shake-ups and lawsuits that are adding some intrigue to the line-up of airlines hoping to create a new era of passenger stimulation in the country.

One theme that seems to be emerging among Jetlines, NewLeaf and Enerjet (Jet Naked) is a push from Toronto Hamilton Airport, which seems like fertile ground for the ULCC concept. The addition of one or more airlines would be a huge win for the airport as it works to reach its target of serving one million passengers annually.

It is unlikely that all three airlines will ultimately commence operations, or that the Canadian market can sustain three ULCCs. But each company remains bullish about pent up demand, and their respective strategies for tapping customers they believe cannot afford air travel.

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