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  • Competitors of Air Canada (Competitor Analysis of Air Canada)

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    KRISHAN SINGH
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    Air Canada faces competition from WestJet in the Canadian domestic market, with Air Canada and WestJet together holding around 80% of market share. WestJet's subsidiary Swoop poses a challenge as an ultra-low cost carrier. In international markets, Air Canada competes with major global airlines like Qatar Airways, Singapore Airlines, and Emirates but has codeshare agreements with others to help reduce competitive pressures. No airline has over 6% of the large global market share.

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    Competitors of Air Canada

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    Air Canada faces competition from WestJet in the Canadian domestic market, with Air Canada and WestJet together holding around 80% of market share. WestJet's subsidiary Swoop poses a challenge as an ultra-low cost carrier. In international markets, Air Canada competes with major global airlines like Qatar Airways, Singapore Airlines, and Emirates but has codeshare agreements with others to help reduce competitive pressures. No airline has over 6% of the large global market share.

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    397 views3 pages

    Competitors of Air Canada (Competitor Analysis of Air Canada)

    Uploaded by

    KRISHAN SINGH
    Air Canada faces competition from WestJet in the Canadian domestic market, with Air Canada and WestJet together holding around 80% of market share. WestJet's subsidiary Swoop poses a challenge as an ultra-low cost carrier. In international markets, Air Canada competes with major global airlines like Qatar Airways, Singapore Airlines, and Emirates but has codeshare agreements with others to help reduce competitive pressures. No airline has over 6% of the large global market share.

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    © All Rights Reserved
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    Competitors of Air Canada (Competitor analysis of Air Canada)

    This article aims to explore the main competitors of Air Canada both in the domestic and the

    international markets. Air Canada is the flag carrier and the largest airline in Canada. It is the

    market leader in the Canadian domestic market though it faces stiff competition from WestJet.

    Likewise, it faces stiff competition from a large number of competitors in the international

    markets as well.

    Competitors of Air Canada in the domestic market

    A good number of airlines operate in the Canadian domestic market. The competition is growing

    as airlines are vying hard to claim substantial market shares. The most notable and major ones

    are Air Canada, WestJet, Porter Airlines and Flair Airlines. According to Jackson (2020) the

    major competitors in the market are Air Canada, WestJet, Sunwing, and Air Transat. However, it

    has been reported that Air Canada is planning to merge with Air Transat.

    According to Mazareanu (2019) both Air Canada and WestJet together have around 80% of the

    Canadian airline market share in terms of the number of departing seats. Air Canada’s market

    share is 46%, whereas 34% for WestJet. Other notable airlines such as Porter Airlines and Flair

    Airlines have limited number of market shares.

    WestJet’s ultra-low-cost carrier Swoop is a big challenge for Air Canada as it offers cheaper

    flights that attract price sensitive passengers. Flair Airlines is another discounter; however, it has

    limited market share. Therefore, the biggest competitor of Air Canada in the domestic market is

    WestJet. Apart from these airlines, there are a number of airlines that are trying to enter into the

    Canadian airline industry.

    Competitors of Air Canada in the international markets


    As Air Canada flies to over to 98 countries and regions, it faces numerous competitors. Some of

    top airlines in the world that go to many of the destinations where Air Canada flies to, are Qatar

    Airways, Singapore Airlines, Emirates Airlines, Hainan Airlines, and Qantas Airways. However,

    Air Canada has codeshare agreements with some big names in the industry e.g. All Nippon

    Airways, Lufthansa, Air New Zealand, United Airlines, Eva Air, and many more that helps it

    reduce some competitive pressures.

    According to T4 Labs Inc. (2019) the biggest airlines based on market share in the global airline

    industry are Delta Airlines (5.4%), American Airlines (5.4%), Lufthansa (5.1%), and United

    Airlines (5.1%). Interestingly, no airline has more than 6% of the global airline market share. Air

    Canada is well behind its competitors in the international markets; however, it has been fusing on

    its global capacity by adding more and new destinations and increasing flight frequencies.

    References:

    Jackson, E. (2020) Air Canada, Transat may face competition hurdles over growing winter sun

    travel market, available at: https://financialpost.com/transportation/air-canada-transat-may-face-

    competition-hurdles-over-growing-winter-sun-travel-market 

    Mazareanu, E. (2019) Major airlines’ domestic market share in Canada in 2018, available

    at: https://www.statista.com/statistics/545642/air-carrier-canada-domestic-market-share/ 
    T4 Labs Inc. (2019) Airline market share, available at: https://www.t4.ai/industry/airline-market-

    share

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