Plans by WestJet to move into regional Canadian markets, followed by Air Canada's promise to respond to the move to lower airfares, should add up to a better deal for flyers.
WestJet announced the name of its regional airline, Encore, last month.
That was followed by a promise from Air Canada to respond to any decrease in fares on its regional flights.
Ryan Twissell of Yellowknife is hoping the competition will mean cheaper trips home.
Twissell attends school in Castlegar, British Columbia and also has family he visits in Calgary, Alberta.
He estimates it can cost him one thousand dollars to fly between the three cities.
Aviation analyst Rick Erickson says it's difficult to predict exactly how much airfares could come down, but he expects it could be dramatic in some markets.
"By and large this is a wonderful opportunity for smaller communities throughout the country in being able to enjoy the economic benefits that aviation brings."
Erickson predicts some fares could decrease by up to 30 per cent.
WestJet expects to launch its Encore flights by late 2013.