An Air Canada plane taxies down the runway at the Ottawa International Airport in Ottawa, Oct. 3, 2024. THE CANADIAN PRESS/Sean Kilpatrick
Transport Minister Anita Anand plans to meet with Canadian airline executives in mid-December following Air Canada’s decision to introduce carry-on baggage fees for certain passengers in the new year.
“I’m not happy with what I’ve heard from Air Canada,” Anand said in an interview with CTV Power Play on Wednesday. “They need to consider the people affected by these fees. This is unacceptable.”
Starting January 3, Air Canada passengers flying on basic fare tickets to North American or sun destinations will face a $35 fee for their first carry-on bag and $50 for the second. Personal items like purses or laptop bags will remain free of charge. Additionally, beginning January 21, these passengers will also be charged for changing their seat selection during check-in.
Air Canada defended the move in a statement to CTV News, calling the fees a response to similar policies by competitors. “These charges are not new in the Canadian industry, and we’re happy to explain this to the government if needed,” the airline stated.
Anand acknowledged that such fees are a business decision but expressed her disappointment. “Canadians are already feeling financial pressure, and this adds to their burden, especially when they’ve saved for travel,” she said.
Other Canadian airlines, like WestJet and Flair Airlines, have already implemented similar policies. WestJet introduced its "UltraBasic" fare in June, which also excludes a free carry-on bag and charges for seat selection at any stage.
Air Canada highlighted that its policy adjustments align with competitors’ strategies, which were introduced earlier.
Minister Plans Talks Amid Past Government Support
During the upcoming meeting with airline CEOs, Anand said she intends to address issues with all airlines collectively. She also pointed to the government’s unique relationship with Air Canada due to a nearly $6 billion bailout package provided during the COVID-19 pandemic in 2021. The deal included a $500 million government equity stake, representing six percent of the airline.
When asked if she might leverage the federal government’s stake in Air Canada to push for changes, Anand said she is reviewing the legal framework of the agreement and plans to share more details soon.
Delayed Updates to Air Passenger Rights Raise Concerns
The Liberals promised stronger air passenger rights more than two years ago, following widespread delays and cancellations during peak travel seasons. While the 2023 budget outlined measures to improve service and reduce delays, it did not address rising fees.
The Canadian Transportation Agency (CTA) has yet to release draft updates to the air passenger rights legislation, despite consultations concluding over a year ago. A CTA representative said there is “no timeline” for publishing the proposals.
When pressed about these delays, Anand said she is advocating for faster progress. “Passengers deserve clear rights as consumers. I’m pushing to ensure this industry is more competitive and passenger-focused,” she said.
With over 80,000 air passenger complaints currently backlogged at the CTA, Anand emphasized her commitment to addressing excess fees and improving service quality across the sector.
