New Flights

6 03 2011

Canada’s largest airline (Air Canada) will start flying out of Toronto Island airport from May 1st which will create competition for Porter Airlines. Air Canada has planned to start service with up to 15 daily non-stop return flights between Downtown Toronto to Montreal. They are also planning to put their tickets on sale. Since there are more producers (airlines) flying out of Toronto Island it increases the supply. The increase in the number of producers will bring down the prices of flights, and therefore, the consumer demand for flights will increase. This will make changes in the equilibrium and result in a new equilibrium market.

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