ULCCs working to break into Canada domestic market dominated by Air Canada and WestJet

CAPA - Centre for Aviation, in a report entitled: 'Canada domestic market: ULCCs work to break market dominance', stated (21-Jul-2019) Air Canada and WestJet dominate Canada's market and account for 86% of domestic ASKs. Swoop and Flair Airlines operate 5.8% of Canada's domestic ASKs. WestJet and Air Canada operate subsidiary carriers, Swoop and Air Canada Rouge, which compete with the threat of potential ULCCs. WestJet estimates 50% passenger stimulation for Swoop, while Air Canada deploys Air Canada Rouge across some domestic routes and is open to using segmented fares to combat ULCC competition. Jetlines, the third ULCC in Canada, is expected to launch commercial services later in 2019. Canada is fertile ground for new ULCC competition, but it is expected competitors will fiercely defend the status quo duopoly against start ups. [more - CAPA Analysis]