Air Canada & WestJet Soaring High in Profits
The idea that a flyer’s first-checked bag is free is no longer existent. Starting today, Air Canada’s first-checked bag fee will be implemented. Based on an Angus Reid poll, as described in this article, Canadian’s are very unhappy with this new fee; people believe the fee to be another profit-maximizing scheme.
As a stakeholder, these individuals would be pleased with this new fee. Also, potential investors are more inclined to invest with significant profit on the balance sheet.
As a consumer, I agree and disagree with the implementation of this baggage fee. The airline industry is arguably a money-losing industry. Purchasing news planes, maintaining planes and employing people to operate the planes is costly. And in 2008, with the economic recession, many airlines went bankrupt. However, just this year, airlines such Air Canada and West Jet reported enormous and recording-breaking profits. After reading this, I understand how Canadians do not like this new baggage fee when these two airlines are making ridiculous profits.
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