A group of secondary Canadian carriers, led by regional start-up Porter Airlines and leisure carrier Air Transat, is refusing to accept that the Air Canada-WestJet duopoly is cast in stone.
Since the demise of CanJet, Jetsgo, and Harmony Airlines as scheduled carriers, both Air Transat and Porter have been expanding fast and exploiting niches they could outgrow. Porter has been using its hub at Toronto City Centre Airport to launch eastern Canadian routes attractive to business flyers.
Now the US Transportation Department has approved its request to add nine eastern US cities to its growing network, with flights to New York Newark set to start by year-end.
Porter's ties to Toronto City Centre became an issue in its US application, which Air Canada opposed on the grounds that Porter's owners also own the airport terminal that evicted Air Canada Jazz last year. Air Canada also claims the airport and Porter have made a sweetheart deal limiting the number of flights. US officials refused to deny Porter's application on these grounds, but a Toronto federal court has reinstated Jazz's complaint alleging that Porter's practices are monopolistic. Porter, which launched last October, reported its first profit in May.
Montreal-based Air Transat continues to grow in a very different niche as a leisure carrier. Based on first-quarter revenue of C$712 million ($680 million) its parent company reported a 60% boost in net income and is likely to set a new profit record for its first half. Historically strong in Quebec, Transat is now working to expand its market share in Ontario.
Finally, smaller Canadian carriers Skyservice and Sunwing Airlines have been awarded rights to launch service to a number of destinations in Mexico. WestJet, which already operates charter flights on behalf of Transat to Mexico, was also awarded rights to add its own scheduled flights to Mexico.
Source: Airline Business
