Air Canada eliminates second bag fee

MONTREAL (September 18, 2008) – Air Canada announced today that in response to decreasing fuel prices, the airline is eliminating all second checked-bag charges implemented this spring and will be incorporating fuel surcharges into its advertised base fares on North American flights.

“Although the cost of fuel remains highly volatile and far above historic norms, the recent retreat in oil prices is enabling us to reinstate our previous baggage policy. We are eliminating the second checked bag charge on North American Tango and Tango Plus fares, reflecting our customers’ expressed preferences. Further, Air Canada is making its pricing more transparent by removing add-on fuel surcharges for flights within North America and instead adjusting its base fares to cover the total cost of fuel,” said Ben Smith, executive vice president and chief commercial officer. “These initiatives are made possible by the recent relief from all-time high oil prices, and even though fares will remain dynamic, Air Canada is committed to everyday low prices and will continue to match the lowest fares in the marketplace.”

With the measures announced today Air Canada will:

– Eliminate starting September 23, 2008, the $25 fee for second checked
bags that was introduced May 15 for Tango and Tango Plus fares within
North America. Air Canada becomes the first major North American
carrier to remove second checked bag fees introduced this year to help
offset record high oil prices.

– Incorporate into its advertised prices the one-way, add-on fuel
surcharge that currently ranges between $20 and $60 on domestic and
US transborder flights. Starting September 18, 2008, Air Canada will
adjust its published fares to include the total cost of fuel in its
advertised base fares. This will provide customers simple, transparent
and low fares.

– Starting October 14, simplify its excess baggage fees by introducing a
single $75 fee for travel within North America ($100 international) for
overweight and/or oversize pieces. This new policy replaces the
standard industry practice of imposing individual fees for each
situation. For bags exceeding the free allowance, the excess piece fee
will now include any applicable overweight or oversize fees. A
10 percent discount on excess piece fees is offered when fees are paid
while checking-in online at aircanada.com or at an airport self service
kiosk.