Tues, May 28th, 2024: Canada investigates its aviation market

In today’s issue: Canada investigates its aviation market, Lufthansa brings back free coffee and tea, WestJet is short on planes, and Bonza gets another two months.

NEWS ROUNDUP

🔵Canada investigates 🔎: Canada's Competition Bureau is launching a study into the dynamics of the country's airline industry where two carriers dominate the market and new airlines struggle to enter. Domestic fares also tend to be "relatively high" and the backlog of passenger complaints has reached a record of 72,000.

The study will ultimately provide recommendations to the Canadian government aimed at making “it easier for new businesses to compete and easier for consumers to make informed choices."

🔵Tea or coffee: Lufthansa will offer free tea and coffee in short-haul economy class this coming summer on a trial basis. The airline previously eliminated free drinks and snacks in short-haul economy back in 2021, which saved them 66 cents per passenger. Since then, passengers have been receiving a complimentary bottle of water, with all other food and drinks available for purchase. This move comes after years of declining customer satisfaction scores.

🔵Buying time ⌚️: The administrators for the now-defunct Australian ULCC Bonza, were granted two months to find a buyer for the airline. Lawyers representing the administrators claimed that keeping the company out of liquidation offers the best opportunity for creditors, as it would allow the airline to sell its most valuable asset, its airline license.

🔵Short some planes: WestJet is looking to pick up 737 MAXs previously flown by the now-defunct Canadian ULCC Lynx Air. WestJet was supposed to take delivery of 8 new jets from Boeing over the course of 2024 but could end up taking delivery of just 2 aircraft this year, as a result of Boeing delivery delays. WestJet has already introduced four aircraft into its fleet that previously flew for Lynx.

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🎧️ THINGS I’M LISTENING TO

🔵The latest episode of the Airline Business Podcast analyzes first-quarter results across the industry.

📺️ THINGS I’M WATCHING

🔵FlightRadar24 put out an explainer video on GPS jamming and spoofing.

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