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The Big Story
What airline travel will look like in 2025
Dec 9, 2024
John Gradek, an aviation management lecturer at McGill University, shares insights into the evolving landscape of airline travel. He discusses Air Canada's new fees for carry-ons and seat selections, questioning the motivations behind these charges. Gradek analyzes how post-pandemic pricing strategies have shifted, causing airlines to adopt ultra-basic tickets with hidden costs. He also explores the competitive dynamics in Canada’s airline industry and the potential for government regulations to ensure fair pricing amidst rising costs.
18:02
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Quick takeaways
- Air Canada has introduced new fees for basic fare passengers, reflecting a strategy viewed by critics as a cash grab rather than competitive pricing.
- The Canadian government is considering regulatory measures to ensure essential services like carry-on luggage are included in airline base fares to protect consumers.
Deep dives
Air Canada's New Charges and Industry Response
Air Canada plans to introduce new fees starting January 3rd, affecting basic fare passengers who will be charged for carry-on bags and seat selection. Specifically, a $35 fee for a carry-on and an additional $50 for a second bag will apply, causing concerns among passengers and transport officials. Minister Anita Anand expressed disappointment, stating that these new charges disproportionately impact those who are already struggling financially, including students and families. Air Canada defends its decision as a response to competitive pressures in the market, pointing out that other airlines like WestJet and Porter have implemented similar fees.
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Discover
highlights
Listen to the best highlights from the podcasts you love and dive into the full episode