Air Canada (TSE: AC) will ban carry-on luggage for basic economy passengers on select routes starting next year, sparking criticism from Canada’s Transport Minister over rising travel costs.
The new policy, effective January 3, applies to basic fare travelers flying within Canada, to the United States including Hawaii and Puerto Rico, and to Mexico, Central America, and the Caribbean. Passengers will be limited to one personal item.
Transport Minister Anita Anand told Global News that she was “extremely concerned” about the change, stating Canadians “rightly expect excellent service, not extra fees.”
The airline carved out exemptions for Aeroplan Elite Status members, Star Alliance Gold members, and Aeroplan Premium credit cardholders, who will retain carry-on privileges and complimentary checked baggage.
Sponsored · Selkirk Copper Mines
The carrier will double the checked baggage allowance to two free bags for passengers booking economy comfort fares on worldwide routes from January 3.
Additional policy changes starting January 21 will require basic fare passengers to pay for seat changes after receiving their complimentary check-in assignment, though the airline pledged to maintain its policy of seating families together.
Air Canada maintained these changes would help consumers make clearer comparisons between different airlines’ offerings.
Specifically, WestJet introduced a similar “UltraBasic” fare earlier in the year. It also came with just one personal item, no seat choice, with passengers most likely to be assigned in the back so they board last and no guarantee of seating families together.
Information for this story was found via the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
