As much as travelers and travel agents may complain about airline service fees, we are all resigned to the fact that they are here to stay. And that while there will be fare sales, there are not likely to be fee reductions.
Or are there? In a story reported in Canada’s Globe and Mail, Air Canada is reportedly having second thoughts about its fees.
The Canadian flagship carrier replaced its CEO, Montie Brewer, with Caliin Rovinescu on April 1. Air Canada has not been faring well in its competition with WestJet. A smaller discount carrier, WestJet offers leather seats and live seatback television, and it is are known for innovative promotions, including a one day $50 “Yes We Can” discount this February in honor of President Obama.
Air Canada’s competitive strategy for the past few years has been an “a la carte” pricing with complicated charges for almost everything. Besides charging for food on planes, it offers a number of different discount fares with different change fees, mileage accrual and other services. The lowest fares even have an additional charge for advance seat assignments.
Whether the fares are too complicated, or whether travelers just don’t like the change in the formerly full-service airline, or whether WestJet is just doing a better job, one thing is clear: Air Canada has been struggling.
New CEO Rovinescu has indicated he will be “reviewing” his predecessor’s strategy, and that there is some chance the airline might return to a more full-service product.
Even if Air Canada drops some fees, there is no guarantee U.S. carriers will follow. But no doubt they will at least take notice. And if the strategy proves successful, well, who knows? Hope springs eternal.
