Calgary’s new budget airline not expected to put a dent in the airline business
Posted November 17, 2021 6:36 am.
Last Updated November 17, 2021 7:46 am.
Lynx Air announced Tuesday it plans to make Calgary its home hub as it offers stripped-down ultra-low-cost airline tickets.
The question being asked now is, how much of a dent in the airline industry is Lynx expected to make?
“It depends on which routes they choose, my guess is they’ll probably focus on two or three markets, and try to dominate or at least get a foothold in those markets,” analyst Barry Prentice told CityNews Calgary.
“Typically, what’s happened in the past is the major airlines have dropped their rates wherever the discount airlines go.”
READ MORE: New ultra-low-cost carrier, Lynx Air, will launch from Calgary
Lynx plans to take off next year, saying it’ll lease 46 Boeing 737s over the next seven years.
The first three 737s are expected to land into their possession in early 2022.
“The downside is when you only have three airplanes, where do you put them? And the real problem is how many flights a day can you do to provide a service to get things going?” Prentice asked.
He compared it to another Canadian budget airline.
“I remember when Flair first started up, I looked at them, and it was good I could get one-way, but then I couldn’t get back. So, if you don’t have enough service to actually do that, then it’s harder [to get a strong foothold in the industry].”
Alberta’s jobs minister says Lynx Air will create hundreds of new jobs in the province.
