Air Canada announced that it would introduce carry-on baggage fees for passengers opting for its lowest-priced basic fare tickets within North America and to sun destinations, starting January 3, 2025. This new policy allows one personal item for free, like a purse or a laptop bag, but charges C$35 for the first carry-on bag and C$50 for the second. This move has sparked an immediate backlash from Ottawa, with Transport Minister Anita Anand expressing her concerns over the new fee structure.
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The airline's decision to charge for carry-on luggage for its basic fare customers aligns it with other carriers who have been implementing similar fees to offset operational costs and generate additional revenue. However, this has not been welcomed by the Canadian government. Anand, in a statement, criticized the move, highlighting that Canadians save up for travel expecting excellent service, not additional fees. "I am extremely concerned," she said, emphasizing that the government is looking into this development closely.
Air Canada has also outlined that passengers arriving at the gate with ineligible carry-on items will face a fee of C$65 per item to check them. However, the airline has committed to ensuring families or those requiring assistance are seated together without additional charges, continuing its policy of prioritizing seating for traveling companions. The introduction of these fees comes with additional changes, such as charging for seat selection changes at check-in, highlighting a shift towards a more segmented service model where customers pay for additional services beyond the basic ticket price. Air Canada noted that it would increase the checked baggage allowance for passengers traveling worldwide on its comfort economy fare, now permitting two complimentary bags instead of one, effective the same date.
Critics argue that such fees could deter travel, particularly for those looking to keep costs low, potentially impacting tourism and economic activity. The decision also raises questions about the airline industry's approach to ancillary revenue and whether it might push for further unbundling of services. The Canadian government's disapproval could lead to regulatory scrutiny or discussions on passenger rights and airline pricing strategies. The situation underscores the tension between airline profitability and consumer expectations, particularly when it comes to the transparency and fairness of travel costs.