Canada Is About to Get Its Own Ultra-Low-Cost Carrier

Dec. 31, 2018

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2 min read

Canada Is About to Get Its Own Ultra-Low-Cost Carrier

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Canada is gearing up to get its very own ultra-low-cost-carrier (ULCC) in 2019, expanding inexpensive flight options in North America.

Enerjet, an existing Canadian carrier, will be rebranded and molded into a low-budget option, which will differ from the way the airline has functioned since it began operations in 2009. The new airline is set to be up and running around this time next year. The new airline is projected to have "an extensive network of destinations across Canada and into the US," according to the Enerjet press release.

The endeavor was funded by Indigo Partners, LLC, an established, aviation-oriented private equity firm, alongside several other Canadian investors. The terms of the deal have not been publicized.

The new airline is hoping to provide a service formerly untapped and have a tremendous impact on commercial aviation in Canada. Alongside bringing about new budget options to North America, the airline is also noting that, with the launch of an ULCC, there will be increased competition, which could inevitably impact airfare nationwide.

"We believe there are millions of Canadians who would jump at the chance to have a simple, safe, and affordable alternative to the sky-high costs of air travel," said Tim Morgan, who will serve as chief executive officer. "We are extremely pleased to have the backing of leading Canadian investors and our partners at Indigo. Together, this group has the financial capacity, experience, and operating expertise to transform Enerjet into a world-class, ultra-low-cost airline that will bring increased choice and competition to the Canadian market."

While Americans tend to be loyal to their full-service carrier of choice, it's always nice to take advantage of cheaper options to get from A to B on low-cost options like Spirit, even if the flights are flooded with additional fees. Soon, Canadians will have the chance to choose as well.

Here's hoping Enerjet doesn't turn out like WOW Air, an Iceland-based airline that is seemingly near the end of its lifetime with commercial aviation.