Description: In a move that could shake the airline industry in Canada, the low-cost airline carrier Southwest airline plans to expand its services to U.S.–Canada routes. This will put pressure on Air Canada, Westjet and Porter airlines to bring down their prices.

Source: BNN

Date: July 26, 2014

Video and Text Link:http://www.bnn.ca/News/2014/7/26/Southwest-eyes-northern-push-threatening-Air-Canada-WestJet.aspx

Questions for Discussion:

1. How will Southwest’s entry in to U.S.-Canada routes impact air transportation in these routes?
2. What are some of the reasons for Southwest to enter in to this new market?
3. Flights from Canada to U.S. are priced inordinately high; can Southwest’s entry in to this market bring down these prices?