Stepping back from the brink: Air Canada lowers rates


Air carriers have been loading on fees and surcharges, but now that one is reversing course, will there be a price war in the other direction? That remains to be seen, but for now, Air Canada is the first airline to relax some of its customer charges. In an announcement earlier today, the carrier stated that it will no longer be charging many of its customers for their second checked bag.

Even more important, Air Canada stated that it will no longer add a fuel surcharge onto the cost of flights; instead, it will be integrating any excess gas fees into the price of tickets. While customers will basically have to pay the same amount, they will no longer be surprised by an additional $20 to $60 fee tacked on at checkout.

Beyond offering customers a price break, Air Canada's recent changes represent an impressive attempt at transparency. Rather than offering a great price and subsequently charging for everything but air, Air Canada is taking the revolutionary step of actually letting customers know what they're getting for their money. It's a bold, crazy move, and I hope it works!