Air Canada charges for extra luggage.

This is from the Star.
West Jet can probably take more passengers from Air Canada by not going along with the increase. It might be better just to increase fares a bit. Air Canada must want its budget service competitors with West Jet to fail. Maybe West Jet loaned an advisor to Air Canada! Notice that the headline says extra luggage making one bag the norm!

Air Canada charges for extra luggage
TheStar.com - Business - Air Canada charges for extra luggage

Second bag will cost $25 on certain flights to help offset rising fuel costs in move following U.S. lead

April 26, 2008
Chris Sorensen
Business Reporter

Citing soaring fuel prices, Air Canada has decided to follow a move by several U.S. carriers and begin charging some passengers $25 to check a second piece of luggage on certain flights.

The country's largest airline, which already charges fees for a number of formerly complimentary services, said that passengers flying within Canada or to the United States on its cheaper "Tango" or "Tango Plus" fares will now be permitted only one piece of checked luggage for free.

Air Canada said the decision to move away from the previous industry standard of two pieces of checked luggage won't be applied to passengers who purchase more expensive fare classes, fly on international routes or hold certain frequent flier status.

"The Americans led on this one and we are just aligning ourselves," said Isabelle Arthur, an Air Canada spokesperson. "It's very important that Air Canada find ways of responding to the pressures of dramatically rising fuel costs.

"With this specific change customers can choose to control their own costs because they can choose to pack lighter."

While the two affected fare classes are the airline's most popular, Arthur said Air Canada research shows that only about 20 per cent of those passengers check more than one bag.

In February, UAL Corp.'s United Airlines became the first U.S. carrier to deviate from the standard policy of two free checked bags by charging some passengers $25 for a second piece of luggage.

Since then most of the other major U.S. carriers have followed suit. The list includes Continental Airlines, Delta Air Lines, Northwest Airlines and US Airways.

Even some low-cost carriers are implementing the extra charge. JetBlue Airways recently said it would begin charging $20 while AirTran Airways said it would charge $10.

Air Canada, though, has gone further than most when it comes to asking passengers to pay for extras that used to be given away free.

Since exiting its restructuring in 2004, the airline has started charging fees for everything from pillows and blankets to enhanced customer service when flights are cancelled because of airport delays or bad weather.

Richard Bartrem, a spokesperson for WestJet Airlines Ltd., said the Calgary-based carrier had not yet decided whether it would match Air Canada's luggage fees.