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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