Newspaper article The Canadian Press

Canadian Airlines Adopt Early All-In Ad Pricing to Ease Shopping Comparisons: Canadian Airlines Move to All-In Ad Pricing

Newspaper article The Canadian Press

Canadian Airlines Adopt Early All-In Ad Pricing to Ease Shopping Comparisons: Canadian Airlines Move to All-In Ad Pricing

Article excerpt

MONTREAL - Canada's largest airlines have all launched all-inclusive pricing efforts that make it easier for passengers to determine the actual cost of flying.

Air Canada began on Wednesday to advertise prices that show the final cost of a ticket by combining the extra charges that have been left out in the past.

Porter Airlines, which flies regional planes mainly from its base at Toronto City Centre airport said it would begin to advertise the total cost of a flight on Friday.

They join WestJet Airlines (TSX:WJA) which began to advertise all-in fares in January.

The new pricing structure will factor in all of the fees, surcharges and taxes that customers wind up paying, which in some cases can virtually double the posted price of airline tickets.

The extra amounts include Nav Canada fees, airport improvement charges, fuel surcharges, insurance and air security charges.

Consumers also have to add taxes -- GST or Harmonized Sales Tax, and possibly sales tax or other taxes depending on the province or country.

Canada's largest carrier (TSX:AC.B) launched its new all-in fare policy as it unveiled a seat sale marking its 75th anniversary.

"Our all-in price advertising initiative is a response to our customers' increased desire for transparency and simplicity when shopping for air fares," said Air Canada marketing vice-president Craig Landry.

Air Canada's new all-in price will be displayed on its website, email specials, online and print advertising.

Large newspaper ads on Wednesday, for example, showed a flight from Montreal to London costing $887, with the base fare starting at $244 and $643 in additional charges.

Final prices may vary by routing and individual options such as baggage fees.

The changes come ahead of laws requiring more honest airfare ads expected later this year.

However, those changes, or at least the delay in bringing them in, were criticized Wednesday by high-profile NDP MP Olivia Chow.

In an emailed comment, Chow said the actions being taken by the airlines were "making a mockery of the conservative government's foot-dragging."

"There is no excuse for this government to wait till the end of the year before drafting truth in advertising regulations," she said. …

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