Air Canada to start charging for luggage on USA flights

[scottbee]

Travellers flying to the United States with Air Canada will soon have to pay to check even one suitcase. The airline issued a statement on its website this week announcing changes to its baggage policies.

They will affect those flying Economy Class with tickets purchased on or after this coming Wednesday, as well as for those travelling on or after Oct. 11.

...

http://business.financialpost.com/2011/09/02/air-canada-to-charge-for-checked-bags-on-international-flight/

 

Looks like Air Canada have joined the US airlines in the race to the bottom. That leaves WestJet as the only airline flying between Canada and the USA that has a free checked bag (well CX and PR too, but they only have a single flight each)

[twoputt.plusone]

I got an email from Air Canada the other day about this. It was only a matter of time. There's no way they're going to pass up an opportunity like that. This will only add to the already high fares Canadians have to pay. I'm sure I'm going to have a lot more Canadian company at the Buffalo airport. ;)

[teemsum]

I was really upset when I heard this on the radio today.

 

Just because everyone else is doing, why do they ?

 

I stopped flying Alaska Airlines because of this.

 

So now, considering flying with Westjet.

 

Hope Westjet doesn't jump on the bandwagon too.

 

 

Cruisingly Yours

[monicajay]

Travellers flying to the United States with Air Canada will soon have to pay to check even one suitcase. The airline issued a statement on its website this week announcing changes to its baggage policies.

They will affect those flying Economy Class with tickets purchased on or after this coming Wednesday, as well as for those travelling on or after Oct. 11.

...

http://business.financialpost.com/2011/09/02/air-canada-to-charge-for-checked-bags-on-international-flight/

 

Looks like Air Canada have joined the US airlines in the race to the bottom. That leaves WestJet as the only airline flying between Canada and the USA that has a free checked bag (well CX and PR too, but they only have a single flight each)

 

Thanks for the up-date but like many many Canadians we do the trek across the border already to take advantage of the much lower airfares.

 

I feel bad for those that live far and only have AC to deal with.

[scottbee]

Thanks for the up-date but like many many Canadians we do the trek across the border already to take advantage of the much lower airfares.

 

I feel bad for those that live far and only have AC to deal with.

 

It's not that airfares are lower in the USA, it's the lack of the USA's international taxes on US domestic tickets (Immigration Fee, Agricultural Inspection Fee, and International flight fee)

[Mom2B&Z]

I was really upset when I heard this on the radio today.

 

Just because everyone else is doing, why do they ?

 

I stopped flying Alaska Airlines because of this.

 

So now, considering flying with Westjet.

 

Hope Westjet doesn't jump on the bandwagon too.

 

 

Cruisingly Yours

FYI West Jet posted on Facebook that they had no plans of introducing baggage fees for NA flights, so looks like we're safe there. I've never flown with them, but currently have two return trips booked in the next 4 months so we'll see how it goes. Too bad they don't have a points/customer reward program, only a credit card...

[frugaltravel]

It's not that airfares are lower in the USA, it's the lack of the USA's international taxes on US domestic tickets (Immigration Fee, Agricultural Inspection Fee, and International flight fee)

 

You are partly correct, but you only give half the facts. Partly the Canadian government plays a role in the tax game too.

 

Example - check YYZ to say MIA and BUF to MIA. One example I checked from YYZ: $3.30RC is "Canada Harmonization Sales Tax" (13%), $25.60SQ "Canadian Airport Improvement Fee" (a flat fee depending on airport), $13.60XG "Canadian GST" (5%), $12.40CA "Canada Air Travellers Security Charge" (flat fee).

 

So in the example I checked, that makes the Canadian taxes $54.90 and the US taxes $45.83 on the ticket originating in YYZ. Some of the US taxes would apply on a purely domestic US ticket (in my example about $35 from BUF) so a case can be made that the higher CANADIAN taxes are much more of a reason for the higher fares than the US taxes, though both are culprits.

 

And as monicajay pointed out, sometimes the base fares from US airports are lower than from Canadian airports. I can't see someone driving a long distance cross border just to save $10.83 on US taxes or even $54.90 on Canadian taxes.

 

That's "the rest of the story."

[scottbee]

You are partly correct, but you only give half the facts. Partly the Canadian government plays a role in the tax game too.

 

Example - check YYZ to say MIA and BUF to MIA. One example I checked from YYZ: $3.30RC is "Canada Harmonization Sales Tax" (13%), $25.60SQ "Canadian Airport Improvement Fee" (a flat fee depending on airport), $13.60XG "Canadian GST" (5%), $12.40CA "Canada Air Travellers Security Charge" (flat fee).

 

So in the example I checked, that makes the Canadian taxes $54.90 and the US taxes $45.83 on the ticket originating in YYZ. Some of the US taxes would apply on a purely domestic US ticket (in my example about $35 from BUF) so a case can be made that the higher CANADIAN taxes are much more of a reason for the higher fares than the US taxes, though both are culprits.

 

And as monicajay pointed out, sometimes the base fares from US airports are lower than from Canadian airports. I can't see someone driving a long distance cross border just to save $10.83 on US taxes or even $54.90 on Canadian taxes.

 

That's "the rest of the story."

 

There's both a 7.5% US tax and a $33US (16.65/ea way) International flight tax, that's often already buried in the main ticket price (the 7.5% is always buried) . Make sure you're counting those too.

 

So; your comparison YYZ-MIA-YYZ (Air Canada)

 

Departing Flight - Tango Plus 278.00

Return Flight - Tango Plus 99.00

Surcharges 15.00

 

Canada Airport Improvement Fee 25.00

Canada Goods and Services Tax (GST/HST #10009-2287 RT0001) 20.21

Canada Harmonized Sales Tax (GST/HST #10009-2287 RT0001) 3.25

Air Travellers Security Charge (ATSC) 12.10

 

U.S.A Transportation Tax 32.64

U.S Agriculture Fee 5.01

U.S Passenger Facility Charge 4.50

U.S.A Immigration User Fee 7.01

September 11 Security Fee 2.50

 

 

That's $392 for the ticket (including $27 in US taxes)

$60.56 in Canadian taxes

$51.66 in additional USA taxes

[frugaltravel]

There's both a 7.5% US tax and a $33US (16.65/ea way) International flight tax, that's often already buried in the main ticket price (the 7.5% is always buried) . Make sure you're counting those too.

 

From YYZ for example, there is no $16.30 (not $16.65) each way US tax, only the 7.5%:

 

"THE US INTERNATIONAL TRANSPORTATION TAX (ARRIVALS/DEPARTURES) APPLIES TO ANY INTERNATIONAL AIR TRANPORTATION COMMENCING OR TERMINATING IN THE USA EXCEPT TO/FROM THE CONTINENTAL US FROM A CITY WITHIN THE CANADIAN AND MEXICAN 225-MILE INTERNATIONAL TAX ZONE."

 

My example was based on specific flights that I randomly checked in October. With my source for checking, the US tax is broken out from the base fare (not a publicy-available website). So I had already taken that into account with my numbers.

 

Basically still more CA taxes than US taxes on tickets from cities where Canadians might consider driving to the US for, and your example also confirmed that. And as I said earlier, many of the US taxes/fees would also apply for a flight from BUF but none of the CA taxes would apply, so the difference is stark in that regard.

[scottbee]

From YYZ for example, there is no $16.30 (not $16.65) each way US tax, only the 7.5%:

 

"THE US INTERNATIONAL TRANSPORTATION TAX (ARRIVALS/DEPARTURES) APPLIES TO ANY INTERNATIONAL AIR TRANPORTATION COMMENCING OR TERMINATING IN THE USA EXCEPT TO/FROM THE CONTINENTAL US FROM A CITY WITHIN THE CANADIAN AND MEXICAN 225-MILE INTERNATIONAL TAX ZONE."

 

My example was based on specific flights that I randomly checked in October. With my source for checking, the US tax is broken out from the base fare (not a publicy-available website). So I had already taken that into account with my numbers.

 

Basically still more CA taxes than US taxes on tickets from cities where Canadians might consider driving to the US for, and your example also confirmed that. And as I said earlier, many of the US taxes/fees would also apply for a flight from BUF but none of the CA taxes would apply, so the difference is stark in that regard.

 

I forgot about that exemption. However, a domestic flight is almost always going to be cheaper than an international one.

[frugaltravel]

....dupe

[frugaltravel]

a domestic flight is almost always going to be cheaper than an international one.

 

Correct, but it is not mainly for the reason you stated in post #5.

[twoputt.plusone]

I can't tell you how they arrive at the final amount, but one thing I do know is that generally speaking, I can catch a flight out of Buffalo to most US points for far less than I'd pay out of Pearson - and I'm not talking about a savings of a few dollars. My savings usually are substantial, more than enough to justify a two hour drive. Considering how many Canadians are with me in the departure area, apparently I'm not the only one.

[scottbee]

I can't tell you how they arrive at the final amount, but one thing I do know is that generally speaking, I can catch a flight out of Buffalo to most US points for far less than I'd pay out of Pearson - and I'm not talking about a savings of a few dollars. My savings usually are substantial, more than enough to justify a two hour drive. Considering how many Canadians are with me in the departure area, apparently I'm not the only one.

 

Compare apples to apples (CANADA-MEXICO vs USA-MEXICO) and you'll see the differences start to disappear. You'd be surprised how much tax (hidden or otherwise) there is on a USA international ticket that doesn't exist on a US domestic ticket.

[iancal]

I think that what Air Canada calls taxes is actually tax AND a fuel surcharge.

 

We are Aeroplan members. We travel to Europe once a year on points. We ALWAYS try to avoid an Air Canada flight in favour of another Star Alliance member-usually Lufthansa. The reason...it is about $150. per person cheaper each way. Air Canada's system charges a fare and then adds on a large component called tax. If you book the same flight on Lufthansa the fare is more, but the tax is much less. We are coming to the end of our Aeroplan points (no longer travel on business) and we will be dropping Aeroplan in favour of a 'non denominational' travel card.

[Aquabug]

Bad, bad AC....Thank goodness we booked before this latest alarming development! :cool: