Thank you.

Good afternoon, Mr. Chairman and members of the committee. Thank you for the invitation to speak on behalf of Porter Airlines.

Porter has transformed within the last two years to become an airline serving more than three dozen markets across North America, as well as points around the world through various airline partnerships, including our joint venture with Air Transat.

We now operate in every province and are a genuine third option for Canadian air travellers, with over 10% of seats in the domestic market. This number is growing rapidly as our fleet of new Embraer E195-E2 aircraft is planned to more than double to 100 in the coming years.

Our focus is on providing an enjoyable experience for economy passengers by offering more value to these travellers than any other airline, through features such as complimentary beverages, including beer and wine served in glassware; premium snacks; free Wi-Fi; and earning 100% loyalty points regardless of the fare you purchase.

Economy passengers are diverse, ranging from day trippers and students on a budget to those looking for a premium all-inclusive experience. Economy travellers have various needs, and we cater to everyone, including people who value the option of a basic fare.

We introduced basic fares in 2018. Today, we have six types of economy fares with varying benefits, and basic is the second most popular fare we offer based on the number of seats sold. Basic economy fares have made air travel more accessible for Canadians and an affordable option for millions of passengers globally, allowing airlines to introduce competition on a scale never seen before. In North America, every airline of note offers a version of basic fares, from ultralow-cost carriers to global network carriers.

Only about 8% of basic fare passengers elect to upgrade their tickets to include a standard carry-on bag to go along with their personal item. This amounts to less than 2% of Porter's total customers.

Our basic fare clearly provides a benefit to consumers who do not intend to bring a carry-on bag to save on their base fare. We make every effort to clearly identify what's included and what's not in every fare type through the purchase process. To ensure passengers are well informed about the features of their selected fare, there are multiple prompts highlighting this prior to the customer confirming their purchase.

It's clear that more Canadians are flying because of basic fares, with a significant majority preferring the value this option provides and understanding what it includes. For those with a preference for having other services as part of their ticket, we have even more options for them.

Through the introduction of new routes that keep prices low and our commitment to elevated economy air service, Porter has set a new standard in the Canadian airline industry. This is driving positive change for all Canadians through healthy airline competition.

Thank you for the opportunity to make this submission. I look forward to answering your questions.