Air Canada offers aid to stranded passengers - at a price

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http://www.financialpost.com/story.html?id=417702

Air Canada offers aid to stranded passengers -- at a
price
Scott Deveau,  Financial Post  
Published: Thursday, April 03, 2008
 
Air Canada unveiled a new service on Wednesday aimed
at helping passengers weather delays or cancellations
caused by factors outside of the airline's control. 

But the so-called "On My Way" service -- and the fee
associated -- was quickly panned by consumer groups
and its main rival.

The optional offering, which costs $25 and $35
depending on the length of the flight, entitles Air
Canada passengers stranded due to bad weather, airport
or air traffic delays with instant message updates,
and complimentary accommodations, meals and bookings
on the next available flight -- even if it's on
another carrier.

While Air Canada offers some of these services already
in rare circumstances, they are not the norm, nor are
they its obligation.

Unlike U.S. airlines, Canadian carriers are not
mandated to provide passengers with compensation for
lengthy delays or cancellations. 

Air Canada follows other legacy carriers in such
incidents, booking passengers on the next available
flight or in rare cases springing for a hotel or meal
if it is an issue within their own operations that
caused the delay. However, if something like a storm
hits, compensation is negligible.

"We saw this as a big need in our marketplace," said
Ben Smith, Air Canada chief operating officer, in an
interview. "It's an industry first that goes above and
beyond customer protection when things outside of the
control of an airline happen."

While it may be true it's an industry first to charge
for such a service, Air Canada's rival WestJet
Airlines Ltd. already offers a comparable service for
free, according to Richard Bartrem, WestJet spokesman.
In fact, the Calgary carrier offers free overnight
stays and meal vouchers regardless of whether it's due
to something within its own operations or due to
something outside of its control, he said.

"We do that because, we as an airline that cares,
believe that's the right thing to do," Mr. Bartrem
added.

Michael Janigan, executive director of the Public
Interest Advocacy Centre, a consumer advocacy group,
said Air Canada's new fee is just another way to strip
back its offerings. "Ten years ago, these kinds of
matters would be looked after by the airline itself,"
he said. "Effectively what you're seeing is a
reduction of the air carrier's responsibility to
effectively taking off and landing."

The trend in recent years has been for carriers around
the globe to start charging for services that were
once free. In the age of US$100 a barrel oil, this
allows them to turn a profit while offsetting fuel
prices and keeping fares competitive. Air Canada is
not alone in its efforts -- just last week, Northwest
Airlines joined the ranks of U.S. carriers who now
charge a $25 fee for checking a second piece of
luggage. But the country's largest carrier has been
recognized for leading the way with its so-called "a
la carte pricing," where it charges extra for
everything from advanced seat selection to flexible
fares. 

Copyright © 2007 CanWest Interactive, a division of
CanWest MediaWorks Publications, Inc.. All rights
reserved.



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