Can new airlines bring Canada's sky-high fares back to earth?

New York

TRAVEL nearly anywhere in the world, and you'll find cheap airlines offering no-frills service, from European giant Ryanair Holdings plc to Peach Aviation Ltd in Japan, Flynas in Saudi Arabia, and Spirit Airlines Inc in the US. But head north of the border, and the aviation landscape is untouched by ultralow-cost airlines.

Canada ranks among the world's most expensive countries to fly in, due in part to high airport and security fees and limited competition, and service is meagre in many small and midsize cities. More than 60 per cent of Canada's 36 million people live within 100 miles of the border, and many head south to fly; about five million cross the border each year for cheaper flights.