Canada’s low cost airline market is about to get more crowded.
Calgary charter airline Enerjet plans to relaunch as a new ultra-low-cost carrier, after securing ‘significant financial commitments’ from investors.
Indigo Partners is among the backers, a serial investor in the ULCC market, including Spirit Airlines and European carrier Wizz Air.
The new business will offer customers ‘a simple, ultra-low-cost fare structure’ and plans to serve destinations across North America.
“We believe there are millions of Canadians who would jump at the chance to have a simple, safe, and affordable alternative to the sky-high costs of air travel,” said Enerjet CEO Morgan.
Canadian private investment firm, Claridge Inc is also investing in the business.
“Being an ultra-low-cost airline, price is the driver and we have to have pricing that’s well below the incumbents and that’s our intention,” Morgan added.
Morgan was one of the co-founders of WestJet.
Enerjet will face competition from WestJet’s new ULCC brand Swoop, as well as Flair Airlines and the soon-to-launch Canada Jetlines.