Canada Global(Web News) Lynx Air announced it will cease operations on Monday, prompting questions about why discount airlines seem to fail so often in Canada, and their customers. What are the options left for those who want to travel cheaply by air? Less than two years after being on the market, Lynx Air is ending operations, making the Calgary-based airline the latest in a long line of Canadian discount carriers that have failed to take off.
The company cited rising operational costs, high fuel prices, unfavorable exchange rates, rising airport charges and a challenging economic and regulatory environment as reasons for the shutdown. Other low-cost and ultra-low-cost carriers recently I have faced difficulties in working in the Canadian market. After operating as a standalone carrier, Sunong Airlines was absorbed into WestJet’s regular operations last year for streamlining purposes. Swap Airlines faced a similar challenge in 2018, just days after its first flight.
It was reported earlier this month that Edmonton-based discount carrier Flair Airlines owes the Canada Revenue Agency $67 million in unpaid taxes. While its CEO Stephen Jones said the debt will not affect the carrier’s operations, the company is putting expansion plans on hold until further notice. — from Zoom Airlines to Routes Air to JetsGo — raise questions about why discount airlines have such a hard time sustaining in Canada, and what options remain for consumers looking to fly cheap.
“For months now, there’s been a bit of a death watch in the airline industry as to which of the new entrants will eventually come under financial pressure,” said Duncan Day, Air Canada’s former chief operating officer. pointed to comments made earlier this year by Porter Airlines CEO Michael Delos, who predicted that a new, ultra-low-cost Canadian carrier would emerge due to the small size of the Canadian travel market in a competitive industry. The carrier will disappear within months.
Discount carriers in the U.S., Europe and Asia use “bargain basement fares” to encourage new travel among customers who don’t normally fly. are –
Like offering flights from London to Edinburgh for a cool $9 – Canadian travelers are subject to third parties. The fees increase the cost of airfare. This is in part because Canadian airports, as non-profits, rely on airport improvement fees to generate revenue. For example, WestJet’s website notes a “departure tax” that it says it collects “on behalf of airport authorities and various government agencies”.
Dee said some airports charge an additional fee of $40 or more – and that doesn’t include other suppliers who add security charges, air navigation charges and fuel surcharges. In contrast, according to the Federal Aviation Administration, the US imposes a $4.50 cap on airport fees called the passenger convenience charge.
Kriti Bhardwaj, whose Lynx flight from Toronto to Los Angeles was suddenly canceled when the airline announced the shutdown, said she is thinking of spending more on flights. He said he was rebooked with Air Canada at two or three times the original flight price. After the Lynx shutdown, maybe as a passenger or as a customer I’m willing to pay a little extra for a better experience.”
