Airlines Slash Perks While Raising Fees: Can the Government Step In?

In today’s air travel landscape, it often feels like you’re receiving less service while paying more for your ticket: cramped seating, fewer perks, and increasingly limited options. The situation is about to get even trickier with Air Canada implementing new restrictions.

Starting January 3rd, passengers flying on a basic fare with Air Canada will no longer be permitted to bring a carry-on bag. Instead, they’ll be required to check their carry-ons at the gate for a fee of $65 if they attempt to board with an ineligible bag. Additionally, effective January 21st, basic fare passengers wanting to change their assigned seats will face extra charges, bucking the trend of complimentary seat selection that was once the norm.

John Gradek, head of the aviation management program at McGill University, has openly criticized these changes, labeling them as a "cash grab.”

Competition seems to be another driving force behind these shifts. Several airlines, including WestJet, have already introduced similar basic fare options that eliminate carry-on allowances and assign seats at the back of the aircraft unless an additional fee is paid. Barry Choi, a personal finance expert, believes this move by Air Canada is an effort to remain competitive.

The push for these increased fees might also relate to improving boarding efficiency, as basic fare passengers typically board after others, which can result in limited overhead space for their bags. Consequently, bags may need to be checked, further delaying boarding times.

Transport Minister Anita Anand expressed her disappointment with Air Canada’s announcement. In efforts to enhance transparency in air travel, the government is pushing for clearer disclosure of airline fees, including those for baggage and seat selection, as highlighted in the latest federal budget.

Furthermore, revisions to the Air Passenger Protection Regulations are still pending, with Anand's team assuring that details will be confirmed soon. She has plans to meet with airline executives in mid-December to discuss improving passenger experiences during the holiday season, with Air Canada’s new fee structure being a key point of discussion.

Gradek suggests that it’s time for the Canadian government to take action against excessive ancillary fees, referencing steps taken by the Spanish government to fine budget airlines for similar practices. He advocates for a reconsideration of airline regulations, proposing that the Minister of Transport could mandate that airlines include carry-on and checked baggage as part of the base ticket price.

Despite the anticipation of these new fees, Gradek warns that this is likely just the beginning. The airline industry remains eager to tap into additional revenues through fees, indicating that travelers should be prepared for even more changes ahead. With the flying public feeling the pinch of these new charges, many are left wondering: can the government do anything to halt this trend, or are passengers simply at the mercy of corporate greed?