Does Porter Airlines’ expansion plan mean lower airfares?

CALGARY- Word that Toronto-based Porter Airlines has big expansion plans is welcome news to Canadian travellers, and experts say it could also force other airlines to drop their prices.

On Wednesday, the airline announced a plan to boost the number of destinations by up to 14 starting in 2016. The move means Porter will invest $2.3 billion on new jets built by Bombardier, which Porter hopes will be allowed to fly to and from Billy Bishop Toronto City Airport.

New routes could include flights to Calgary, Vancouver, Edmonton, Winnipeg, San Francisco, Las Vegas and Los Angeles.

“Our passengers have told us they want additional routes and comparable and competitive fares, and we’re responding to that,” said Robert Deluce, CEO of Porter Airlines.

Air Canada would not comment on the news on Wednesday. In a statement, WestJet said: “We are focused on our fundamentals. We expect competition to increase and are preparing accordingly.”

Airline analyst Joe D’Cruz predicts Canada’s major carriers will do whatever it takes to block Porter, and he wonders if the small company can hold them off.

“Can Porter survive the financial drain that a price war entails?”

An analyst from Calgary’s Bow Valley College adds he doesn’t expect to see major price drops on other carriers as a result of Porter’s expansion.

“A third carrier is not going to cause them to radically restructure their price points,” explains David Allwright. “You might find a couple of runs where prices come down, but don’t expect that right across the board.”

But all hope is not lost for frequent flyers.

The increased competition comes on the heels of a Statistics Canada report, which found average airfares before fees and taxes increased in many cities across the country last year. Saskatoon saw a nine per cent jump, followed by Vancouver and Halifax which both saw a four per cent increase.

With files from Jamie Sturgeon and Tony Tighe, Global News