Beginning October 29, 2014, Westjet Airlines will be charging a $25 baggage fees for all flights within Canada and the United States. Westjet spokesman, Robert Palmer said that this change will lead to lower economy flight pricing. Analyst say that this will help Westjet to generate an approximate 87.5 million dollars and cause Air Canada to follow close behind. Is this considered a valued proposition on Westjet’s part? Although this may dissatisfy Westjet’s customers to begin with, the lower flight prices practically pay for the expense that one must pay upfront. Also, the paid luggage fee in turn could be a benefit for Westjet customers and customer relations because with this added fee, it means that Westjet can dedicate a larger amount into baggage claims and lost and found problems. This in turn could benefit both parties. Westjet’s recent decision has great impact both socially and politically. For instance, it is now socially acceptable to be charging baggage fees, while politically, companies will add this fee to their airline cost. Though this is an added cost for those flying economy, the demand of economy flights will not be greatly affected, especially since competitors are following suit. My analysis shows that this added fee will generate revenue while still accommodating customers accordingly.

Globe and Mail- New luggage fees to generate millions for Westjet