Fight over Flights to Prince Edward Island

A fight is brewing on Canada’s Prince Edward Island over Air Canada’s decision to eliminate its Toronto-Charlottestown flights.  Air Canada has pulled out of the market because it is angry that PEI’s government has subsidized WestJet’s flights to the island.  In response, PEI’s Premier said that the subsidies were worth it because WestJet flies 737s while Air Canada was using much smaller CRJ regional jets.  While Air Canada says they are annoyed with the incentives given to WestJet, they have admitted that in 2002 they received similar incentives for flights to PEI from Montreal.  What goes around, comes around. 

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