Canada's airline duopoly leaves low-cost carriers and flyers feeling shut out

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As a new virus wreaks havoc on the global travel industry, aviation upstarts in Canada have their radar trained on a more entrenched set of challenges.

The airline market remains a duopoly, stifling competition in a vast, sparsely populated country. Start-up cash is hard to come by. Competition watchdogs respond sluggishly. And high fees and incumbent perks at big airports work against new budget carriers.

"Countries like the U.S., Japan, China have bigger domestic airline markets. Yet most of the other countries in the world are not going to have as big a reliance on air travel internally as a place like Canada," said Richard Elliott, a competition lawyer. In October, Vancouver-based Canada Jetlines Ltd. announced it was postponing its planned December launch and laying off most employees after failing to secure the required financing and losing investment partners.

"It was easier to get their money, going halfway across the world, than it was to extract money from Canadian investors," Aasen said. "They were shocked that there wasn't anything like this available in Canada aside from Flair."

 

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