Air Canada passengers bid farewell to baggage fees

In what may be a North American first, Air Canada has decided to drop its controversial checked baggage fee, now that the price of jet fuel has dropped to more manageable levels. This means that passengers travelling on Canada’s flag carrier will be able to check a second piece of luggage on domestic and trans-border (Canada USA) flights for no additional cost. Air Canada, not surprisingly, made a point of emphasizing that it will be the first major airline in Canada or the US to take this step, as it attempts to win over public opinion. It remains to be seen whether or not carriers like American Airlines—which charges for all items of luggage—or United, which recently raised its baggage fee, will follow this consumer-friendly example.

But analysts interviewed by Reuters News noted that this move on the part of Air Canada does not mean that the airline industry is getting any better. In some ways, increasing economic concerns following the collapse of US giant Lehman Brothers, raises even more difficult questions for the company. The flag carrier is, however, trying to maintain a competitive edge by offering passengers a service once again free of charge which is not provided by most major airlines based in the US. Shortly after Air Canada made its announcement, WestJet, its largest domestic competitor, also decided to scrap checked bag fees.

www.aircanada.com