Canada

Canada

In Canada, Air Canada has found it difficult to compete with new low-cost rivals such as Westjet, Canjet, and Jetsgo despite its previously dominant position in the market: Air Canada entered a period of bankruptcy protection in 2003, but emerged from protection in September 2004. Air Canada operated two low-fare subsidiaries, Tango and Zip, but both were discontinued. (Jetsgo itself ceased operations on March 11, 2005 and Canjet discontinued scheduled air services on September 10, 2006.)

Today Westjet and Zoom Airlines are the primary low-cost airlines in Canada. Over time Air Canada as started to offer Tango fares that offer low-cost carrier services while still offer legacy carrier type service on other fair basis.

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