Competition from Flair Airlines could contribute to lower airfares in Canada
Canada鈥檚 airline duopoly has kept airfares high, and Flair Airlines set out to challenge that with ultra-low-cost flying. A foreign ownership stake brought the company under investigation by the Canadian Transportation Agency, but many Canadians are sympathetic to the notion of a feisty underdog challenging the status quo, according to Professor听Karl Moore. Most Canadians like the idea of great prices, Moore told Postmedia News, and additional competition in the marketplace could also help keep WestJet and Air Canada鈥檚 airfares low.
Flair Airlines offers low-cost airfares to Canadians, but the Canadian Transportation Agency (CTA) questioned whether the company was Canadian enough. In March 2022, a CTA investigation found that the carrier did not meet the requirements of a domestic airline. At issue was the ownership stake of a U.S. firm. The company has since made changes that will allow it to continue to operate. It makes sense for Flair to stay in business, according to Professor Karl Moore. Shutting them down would reduce competition and could result in public outcry.
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