Canadian airline industry pushes back at government crackdown

BTN News
Tuesday, 23 April 2024

The Canadian airline industry is pushing back at a government move for 'Fairer Prices, Fewer Fees', saying authorities need to put their own house in order.


The Trudeau government says it wants to crack down on drip-pricing, when a retailer displays only part of an item’s price, revealing the total amount only at the end of the buying process to ensure Canadians have full transparency about the real cost of their flight."

In a section of the next budget entitled 'Amending the Air Passenger Protection Regulations,' it said it will introduce regulatory amendments this year “to ensure that airlines seat all children under the age of 14 next to their accompanying adult at no extra cost" and "strengthen transparency of optional fees charged by airlines, for everything from baggage to seat selection to in-flight meals”.

However, airlines seemed surprised by the move.

Andy Gibbons, vp External Affairs for WestJet told media: "We were surprised to see Budget 2024 contained a measure to increase transparency for optional fees that (already are) transparent and allow for consumer choice and tailored travel options for our valued guests.

“This budget item was published without consultation and fails to include a commitment from the government to enhance the transparency of its own fees and those of third parties, which are mandatory,” he said. 

“A ’one size fits all’ approach does not work for Canadians as it requires them to pay for services they may not use, increasing the cost to travel for all guests, including those who rely on the availability of low-fare ticket prices.

“To preserve affordable air travel, Canadians require the choice to opt into the products they require for their journey beyond their seat, to avoid subsidising for a service that does not fulfill their individual needs,” Gibbons said.

Air Canada also expressed surprise: “Customers know exactly how much they are paying and what is included, as we also provide a breakdown of the price prior to final sale (and) customers have a choice of what ancillary services they wish to purchase, which are spelled out clearly in our individual fare descriptions, so it is very transparent.”

Porter Airlines said it was "unclear what the intent of the budget comments are” and the National Airlines Council of Canada said it doesn’t fully understand what Ottawa is after.

Canadian airline industry pushes back at government crackdown

BTN News
Tuesday, 23 April 2024

The Canadian airline industry is pushing back at a government move for 'Fairer Prices, Fewer Fees', saying authorities need to put their own house in order.


The Trudeau government says it wants to crack down on drip-pricing, when a retailer displays only part of an item’s price, revealing the total amount only at the end of the buying process to ensure Canadians have full transparency about the real cost of their flight."

In a section of the next budget entitled 'Amending the Air Passenger Protection Regulations,' it said it will introduce regulatory amendments this year “to ensure that airlines seat all children under the age of 14 next to their accompanying adult at no extra cost" and "strengthen transparency of optional fees charged by airlines, for everything from baggage to seat selection to in-flight meals”.

However, airlines seemed surprised by the move.

Andy Gibbons, vp External Affairs for WestJet told media: "We were surprised to see Budget 2024 contained a measure to increase transparency for optional fees that (already are) transparent and allow for consumer choice and tailored travel options for our valued guests.

“This budget item was published without consultation and fails to include a commitment from the government to enhance the transparency of its own fees and those of third parties, which are mandatory,” he said. 

“A ’one size fits all’ approach does not work for Canadians as it requires them to pay for services they may not use, increasing the cost to travel for all guests, including those who rely on the availability of low-fare ticket prices.

“To preserve affordable air travel, Canadians require the choice to opt into the products they require for their journey beyond their seat, to avoid subsidising for a service that does not fulfill their individual needs,” Gibbons said.

Air Canada also expressed surprise: “Customers know exactly how much they are paying and what is included, as we also provide a breakdown of the price prior to final sale (and) customers have a choice of what ancillary services they wish to purchase, which are spelled out clearly in our individual fare descriptions, so it is very transparent.”

Porter Airlines said it was "unclear what the intent of the budget comments are” and the National Airlines Council of Canada said it doesn’t fully understand what Ottawa is after.