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Zip, WestJet in fare war that could hurt them both ; Move follows competition bureau ruling Battle could intensify when Zip flies eastward
[Ontario Edition]
Toronto Star - Toronto, Ont.
Author: Susan Pigg
Date: Jan 22, 2003
Start Page: C.01
Section: BUSINESS
Text Word Count: 583
 Abstract (Document Summary)

Air Canada's Calgary-based low-fare carrier Zip and rival WestJet Airlines are locked in an unprecedented fare war this month that may be good news to consumers, but bad news for both businesses, industry observers say.

One airline analyst warned yesterday that the fare slashing is so severe that even non-unionized WestJet, with its lower cost structure than Zip and Air Canada, won't be able to make money on the routes.

cp file photo A WestJet plane sits on the tarmac as a Zip flight takes off from Calgary last fall. The Air Canada subsidiary has sparked a fare war.

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