Canadian travelers are wondering what's getting between them and their cheap airline seats?
A number of discount airlines have come and gone in Canada, and at least three — Jetlines, Jet Naked and NewLeaf Travel — have been trying to get off the ground for several years.
NewLeaf Travel appeared to have won the race to the skies last week when it started selling tickets for February flights. But the fledgling company cancelled its winter takeoff plans last Tuesday amid a review of its licensing requirements, grounding NewLeaf indefintely.
The budget airline model — in which companies offer cheap introductory fares and charge extra for things like checked luggage and early boarding — has proven lucrative in other countries. Successful companies include Ireland-based Ryanair, U.S.-based Spirit Airlines, Iceland-based WOW Air and Malaysia-based AirAsia.
So why is it so hard for Canadian companies to follow suit?
One concern is cash on hand.
In order to secure a carrier licence from the Canadian Transportation Agency, a company must show it has enough funding to operate for 90 days without turning a profit.
Calgary-based charter airline Enerjet plans to launch his own budget airline under the brand Jet Naked.He hopes to have Jet Naked up and running by the spring, but makes no promises.
Jetlines is also aiming to take off later this year. CEO Jim Scott said slumping oil prices have hampered its efforts to secure funds.
The Canada Transportation Act requires at least 75% of an airline's voting shares be owned and controlled by Canadians, a stipulation some operators call "archaic" and believe it was designed to protect established airlines rather than Canadian consumers.
