Canadian airlines are getting to the bottom line 22 SEP 2008: Canada's major airlines are trying to take the sting out of their sticker prices by re-jigging how the cost of fuel is reflected in the final ticket price. Air Canada announced last week it removed the fuel surcharge effective Thursday, prompting WestJet to follow suit the same afternoon.
Typically, the two took different approaches, with Air Canada saying it would adjust the base price of its tickets, while WestJet insisted it was simply getting rid of the surcharge.
``As promised we said we would remove our fuel surcharge when we were able to do so and we're proud to announce that we're eliminating it,'' said WestJet executive vice-president Bob Cummings after a news conference at Calgary International Airport.
Cummings said WestJet would have revealed it was ditching the fuel surcharge within a few days, but Air Canada's move ``accelerated'' the announcement.
The changes are not likely to have a major impact on the final price of an airline ticket, but customers will be better equipped to make decisions when they make their purchase, by seeing the actual price up front.
WestJet's fuel surcharges added $20 to short-haul flights, $30 dollars for medium range flights, and $45 for long-haul flights.
Air Canada estimated its fuel surcharges added between $20 and $60 to a one-way ticket on domestic flights and flights across the border to the United States.
And bye-bye baggage fee
Air Canada also said it would get rid of the $25 baggage fee starting September 23 and adjust the fee structure for overweight baggage in October.
Ben Smith, Air Canada's chief commercial officer, said in a statement that the airline was making its pricing ``more transparent'' by removing the add-on fees.
``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,'' Smith said.
Meanwhile at Toronto City Centre Airport...
Porter Airlines said it was including the cost of fuel in its advertised base fares effective September 19, better reflecting the final cost of a flight for customers.
“We’re pleased to make this change for our passengers since Porter has always favoured advertising fares in this way,” said Robert Deluce, president and CEO of Porter Airlines.
|
