PORTER AIRLINES IS ROLLING OUT A NEW BASIC FARE CATEGORY AS COMPETITION IN THE LOWEREND OF THE MARKET HEATS UP.

TORONTO • Porter Airlines

Inc. is rolling out a new basic fare category as competition heats up between airlines chasing price-sensitive travellers.

The private airline announced on Wednesday its will offer a basic fare on certain routes that features a lower price, while charging for additional service options, including checked luggage and advance seat selection — similar to the strategy at ultra-low-cost carriers.

“This helps ensure we can remain competitive in the future with any new products in the marketplace, whether it’s from Air Canada and WestJet or new ultralow-cost carriers that come into the market,” Michael Deluce, Porter’s chief commercial officer, said in an interview.

“Everybody is positioning themselves to ensure they can be competitive from a price standpoint.”

The decision to introduce a lower-cost fare comes as other major carriers, including Air Canada and Westjet

Airlines Ltd., are offering unbundled fare options that target price-sensitive travellers. It also comes just a few weeks after the launch of WestJet’s new ULCC Swoop, which began flying in June.

However, Deluce says the new fares are not a response to the recent launch of Swoop.

“They are not a direct competitor to us, but over time, they might be,” he said.

“Really, this is a response to where the entire industry is going, including Air Canada, our main competitor, and WestJet to a lesser degree.”

Until recently, Canada was the last G7 nation without an ultra-low-cost carrier, which keeps fares as low as possible while charging for extras such as assigned seats and carry-on luggage.

While Porter is not an ultra-low-cost carrier, running a distinct model that offers more services for fliers, its new basic fares will work similar to ultra-low-cost carriers’ fares.

The fare will be the lowest price, but it restricts passengers’ ability to make itinerary changes, cancellations or receive refunds or credits. Basic fare passengers will also only be allowed to bring one personal item, such as a small purse or briefcase, as a carryon. Anything bigger will have to be checked for a fee of at least $27.50 in advance, and $37.50 at the airport.

Passengers will still get Porter’s complimentary services,

(SWOOP IS) NOT A DIRECT COMPETITOR TO US.

which includes beer, wine and snacks on board.

The airline is currently offering the cheaper ticket price on routes to and from Sault Ste. Marie, Sudbury, Timmins and Windsor. Deluce would not say why Porter selected those routes, but that the airline is hoping to introduce the fare on additional ones.

“This really provides an incremental fare that’s targeted at certain type of traffic that is highly pricesensitive,” he said. “There’s a direct relationship between price and demand and the stimulative effect of lower fares … it enables people to get off the road, to benefit from lower price points, and travel when they otherwise would not have.”