While taking a look at some of my classmates’ blog, Peinan’s blog caught my eye, in particular the comment ‘why don’t they charge by people’s own weight as well?’. The airline industry often receives coverage regarding the prices it charges and the ‘value for money’ consumers are actually receiving. Recently Air Canada has made the headlines for introducing a $25 fee for checked luggage to economy class seats.
I understand these firms are looking to maximise profit, however, when do their actions begin to become unethical? Airlines already drastically increase prices around Christmas, playing on customers’ desperate want to get back to loved ones for the Holidays. Typically, so called ‘budget airlines’ tend to charge for the parts of the service you actually use. For example, Ryan Air has become highly successful in this field. However, in my view I don’t feel that Air Canada’s prices truly reflect them operating in this part of the market.
I think that the main reason that consumers have acted adversely to the introduction of this fee is due to the fact that it seems as though Air Canada is increasing prices, whilst removing features from their value proposition. Consumers won’t act kindly to this thought and whether or not they continue to use the company, Air Canada needs to be cautious of losing customers to other airlines as a result of the negative publicity they have recently received.
References:
- https://blogs.ubc.ca/peinanli/2014/10/05/why-we-need-to-buy-flight-ticket-for-my-luggages-too/
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http://www.edmontonjournal.com/Checking+Check+your+wallet+Canadian+airlines+start+charging/10339500/story.html
- Image Source -http://www.thestar.com/business/2011/06/08/air_canada_facing_strike_next_week.html