Appearing before MPs, airline CEOs defend carry-on baggage fees
Airline CEOs defended carry-on baggage fees as they faced questions from MPs on the House transport committee Friday.
Earlier this month, Air Canada announced plans to eliminate complimentary carry-on luggage from its cheapest tickets on some flights. WestJet made a similar move earlier this year.
Porter, Flair and Sunwing — which was bought by WestJet in 2023 — also charge passengers an extra fee for carry-on luggage.
Air Canada CEO Michael Rousseau took the brunt of the questions; he and other Air Canada executives were given their own one-hour time slot. The heads of WestJet, Air Transat and Porter were grouped together for a separate hour of questions.
In his opening remarks, Rousseau argued that the new fare that excludes carry-on luggage — slated to take effect in early January — offers flexible and more affordable options for travellers.
“Travellers tend to prioritize the lowest advertised price even if additional fees make the final cost higher, and small differences in pricing can determine whether we are considered at all,” he said.
Rousseau also argued that MPs only began to scrutinize carry-on fees after Air Canada announced its decision, even though other airlines already had similar fares.
“Similar fare structures at other carriers have not raised concerns from Parliament,” he said.
Air Canada president and CEO Michael Rousseau tells a parliamentary committee that the decision to eliminate carry-on luggage from the airline’s cheapest tickets on some flights was meant to put Air Canada in a better position to ‘compete for price-conscious customers.’
WestJet CEO Alexis von Hoensbroech argued the new fare offers flexibility for passengers and said that more than a million Canadians have purchased tickets that don’t allow passengers a carry-on bag.
“It’s a choice. Everyone who buys this knows [it doesn’t include a carry-on bag]. This is not a surprise, this is something someone deliberately chooses,” he said.
Airlines that have eliminated free carry-on baggage on their lowest fares still allow those passengers to bring a small “personal item,” such as a purse or a computer bag, free of charge.
MPs pushed back and questioned whether the additional fees were a way for the airlines to make extra money.
“My fear is that instead of those dollars going back to folks who want to travel without a carry-on, it will just go to Air Canada’s bottom line,” Conservative MP Philip Lawrence said.
Liberal MP Angelo Iacono questions the CEOs of WestJet, Porter and Air Transat about the money their companies or employees received from the federal government during the pandemic. Iacono says the airlines are imposing…
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