Ultra-low cost airlines: onerous restrictions could prevent development of Canada’s aspiring ULCCs

As weakness undermined the oil sector in Canada’s western provinces, two aspiring ULCCs in the country – Jetlines and Enerjet – slowed their development plans in the face of a new economic reality. Their rival NewLeaf Travel adopted an entirely different path, using idle aircraft capacity freed up as a result of the depressed oil and gas business.

All three entities have engaged in some form of litigation during various phases of their respective development, and NewLeaf finally debuted in Jul-2016 after enduring some regulatory confusion that had thwarted its initial launch in Feb-2016. With roughly two months in business NewLeaf is making some schedule adjustments, but pledges that overall expansion is on the horizon.

Jetlines and Enerjet have sought exemptions from Canada’s foreign ownership rules in order to attract international equity partners, but the government appears to be dragging its heels on a decision, which further clouds the ability of those two companies to bring their ULCC visions to reality.

This CAPA Premium Analysis article is 1,797 words.

To access CAPA Premium Analysis you need a CAPA Membership

Your window into the latest insights

CAPA employs an industry-leading Analyst team based in Europe, North America, Asia and Australia who offer unique perspectives and independent and accurate commentary of critical industry developments globally. CAPA Members rely on our Analysis to unlock valuable insights and actionable intelligence to keep ahead of the game.

Big picture strategic view

Our Analysts don’t just report the news - they take a big picture strategic view of aviation dynamics, issues and trends and analyse the implications of these developments for you.

Global intelligence

The CAPA Analyst team is based globally to ensure our CAPA Members have access to independent, unique perspectives covering an entire spectrum of daily, worldwide commercial aviation developments.

Customise your Alerts

CAPA Members can use CAPA Alerts to receive daily, weekly or monthly and customised updates on our Analysis.

I'm very impressed by the factual and detailed analysis CAPA is always doing.

- CEO, Airline Member
To learn more, contact us:
Phone: +61 2 9241 3200 | Email: membership@centreforaviation.com