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Thread: Did Air Canada & WestJet collude on checked bag fees

  1. #1

    Default Did Air Canada & WestJet collude on checked bag fees

    Proposed lawsuit claims Air Canada, WestJet colluded on checked bag fees

    CTVNews.ca Staff Published Tuesday, September 27, 2016 2:00PM EDT


    A proposed class action lawsuit is accusing Air Canada and WestJet of colluding on plans to charge a checked bag fee.


    The lawsuit, filed in Regina, claims the two Canadian airlines fixed the price for passengers’ first checked bags, and then colluded to introduce the fees within days of each other.
    None of the allegations have been proven in court.

    On Sept. 15, 2014, WestJet announced a $25 fee for the first piece of checked luggage for economy-class passengers on flights within North America. Three days later, Air Canada announced it would also charge its customers $25 for their first piece of checked luggage.


    Part of the statement of claim states: “That Air Canada was ready to implement the same type of fee on its system by its staff only three days after WestJet’s announcement would be impossible to coordinate for Air Canada. The announcement within three days indicated collusion between the Defendants and the exchange of information between the Defendants and coordination of the same charges for the same class of customers.”


    Tony Merchant, the lawyer representing the class-action lawsuit, told CTV News Channel on Tuesday, he believes he can establish that the airlines were acting in concert.


    “Within three days, each of these companies came out with exactly the same charge, going after exactly the same customers … coincidence? Difficult to credit that that’s going to be accepted by the courts as nothing more than coincidence,” Merchant said.
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  2. #2
    Plug C2E into my veins!!!
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    Probably. Hate the airline industry in this country.

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  4. #4
    C2E Continued Contributor
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    The airline industry in this country is dysfunctional and needs to be rebuilt from the ground up.

  5. #5

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    It's a duopoly. I think, while de jure collusion is probably unprovable, de facto collusion is inevitable. They only have to be as good as each other, consumers don't really have any choice.
    Let's make Edmonton better.

  6. #6
    I'd rather C2E than work!
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    Was it just a coincidence they introduced these fees shortly after the Wynne government in Ontario introduce a 2% increase in jet fuel taxes? Have to make up the revenues somewhere.

  7. #7

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    To me, cost increases are usually irrelevant to prices. Prices are based on maximising profitability ((unitsXprice)-costs) at what the market (including the competition and consumers both) will allow. Baggage surcharges can also, of course, discourage passengers from carrying as much so they can turn their holds to more to the cargo market.

    Costs sometimes affect choice of suppliers, but that's it, and in this case, Ontario has a monopoly on jet fuel taxes at Pearson.
    Let's make Edmonton better.

  8. #8

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    Quote Originally Posted by etownboarder View Post
    Probably. Hate the airline industry in this country.
    x2. Its ridiculous I can fly to New Zealand (Sales for around 800 to 900 available right now) for less than it often costs to fly to Toronto.

  9. #9

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    Quote Originally Posted by moahunter View Post
    Quote Originally Posted by etownboarder View Post
    Probably. Hate the airline industry in this country.
    x2. Its ridiculous I can fly to New Zealand (Sales for around 800 to 900 available right now) for less than it often costs to fly to Toronto.
    Why don't you?

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