Will Roll Remaining Fuel Surcharges Into Published Airfares

It's not a complete withdrawal from the horrendous added fees now common on most North American airlines... but it's a definite step in the right direction. Air Canada announced Thursday that in response to decreasing fuel prices the airline is eliminating all second checked-bag charges implemented this spring.

"Although the cost of fuel remains highly volatile and far above historic norms, the recent retreat in oil prices is enabling us to reinstate our previous baggage policy," said Ben Smith, Executive Vice President and Chief Commercial Officer. "We are eliminating the second checked bag charge on North American Tango and Tango Plus fares, reflecting our customers' expressed preferences. Further, Air Canada is making its pricing more transparent by removing add-on fuel surcharges for flights within North America and instead adjusting its base fares to cover the total cost of fuel.

"These initiatives are made possible by the recent relief from all-time high oil prices and even though fares will remain dynamic, Air Canada is committed to everyday low prices and will continue to match the lowest fares in the marketplace."

With the measures announced Thursday, on September 23 Air Canada will eliminate the $25 fee for second checked bags that was introduced May 15 for Tango and Tango Plus fares within North America. Air Canada becomes the first major North American carrier to remove second checked bag fees introduced this year to help offset record high oil prices.

In a somewhat less-altruistic move, Air Canada will fold into its advertised prices the one-way, add-on fuel surcharge that currently ranges between $20 and $60 on domestic and US transborder flights. Starting Thursday, Air Canada will adjust its published fares to include the total cost of fuel in its advertised base fares... meaning that while passengers will still be paying more to cover fuel costs, at least they'll know about it upfront.

Next month, Air Canada will consolidate its current range of baggage fees into a single, $75 charge for overweight and/or oversized luggage. The airline says its new policy replaces the standard industry practice of imposing individual fees for each situation.

For bags exceeding the free allowance, the excess piece fee will now include any applicable overweight or oversize fees. A 10 percent discount on excess piece fees will be offered when fees are paid while checking-in online, or at an airport self service kiosk -- a step the airline is presumably taking to encourage travelers to handle check-in duties on their own, without the need of check-in personnel.

Air Canada says it "will continue to review its policies to determine what adjustments are to be made so that, against a backdrop of high and volatile fuel prices, it continues to provide the products and services that respond to customer demand."

Sure, that's blatant corporate-speak... but it's also a phrase we'd be surprised to hear from the likes of American Airlines, or Tiltonland.

FMI: www.aircanada.ca