As I asked my travel agent: On an Air Canada ticket you pay extra for: - seat assignment - fuel - airport taxes - luggage - food and drink - frequent flier reward miles - changes .. and now service. So what's are you paying for in the first place? I know Air Canada, by being a monopoly or a member of a duopoly in many of the markets they fly, has to be a lot of things to a lot of people. But by nickel and diming (or $10ing and $20ing) for optional services, is there enough savings from NOT providing the services to everyone who might have used them AND does the money you are collecting cover the costs AND the tremendous negative perception that it creates? This time round, I must think not. I think that Continental or Westjet's (or so many other companies) strategy will win-out in the 'end'. Provide good if not great and consistent service for a fair price. Then move into markets where your ability to execute is easy and exit where it is difficult. Saying no to a business or a market is probably a better judge of a great company (or individual) than saying yes. Just my bits. Matthew On Thu, Apr 3, 2008 at 11:37 AM, Reagan Dupont <hotornotcollege@xxxxxxxxx> wrote: > 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 (c) 2007 CanWest Interactive, a division of > CanWest MediaWorks Publications, Inc.. 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