Why discount airlines keep going bust in Canada
The Decibel
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Challenges Faced by Discount Airlines in Canada
The chapter explores the obstacles encountered by discount airlines in Canada, including high airport fees, limited investment capital, and lack of competition due to Air Canada and WestJet's duopoly. It discusses the impact of these challenges on the market, potential repercussions on ticket prices, and how these factors differ compared to the US and Europe. The episode emphasizes the unique airport model in Canada, where authorities operated by entities like the Greater Toronto Airport Authority pay rent to the federal government, resulting in a user pay system for airport fees.
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