Air Canada flip-flops on fatter surcharge

Air Canada temporarily raised its domestic fuel surcharges on the weekend, sparking complaints from consumer advocates who say extra fees are making a mockery of advertised base fares.

For more than two days, Air Canada's one-way fuel surcharge became $30 for short-haul flights of 483 kilometres or less, $40 for medium-haul between 484 kilometres and 1,609 kilometres, and $55 for long-haul of 1,610 kilometres or more for travel in Canada.

But late yesterday afternoon, the carrier reverted to its previous fee schedule of $20 one-way for short haul, $30 for medium haul and $45 for long haul. Air Canada spokesman Peter Fitzpatrick said the carrier's fares are "dynamic" and that "many factors are at play affecting pricing, including fuel costs, market conditions, the competitive environment and so on."

On the Toronto-Ottawa route, Air Canada promoted base fares as low as $49 one-way, but once current fuel surcharges, taxes, security charges and other fees are added on, the final round-trip ticket price is $216.65. Toronto-Vancouver is $244 one-way, or $701.75 total return.

"This is a commodity where the airlines publish one-quarter or one-third of the final round-trip price, depending on your flight," said Bruce Cran, president of the Consumers' Association of Canada. "We would like to see return airfares advertised with an all-in ticket price, to give consumers the real price."

Mr. Fitzpatrick said the carrier introduced fuel surcharges on May 9, and prior to that, fuel expenses were taken into account as part of the base fare for domestic and trans-border routes into the United States.

Montreal-based Air Canada isn't opposed to marketing all-in fares, "provided all carriers, both domestic and foreign, abide by the same rules for advertising to ensure a level playing field," he said.

Mr. Fitzpatrick added that Air Canada warned from the outset that "fuel is very volatile and, as a result, the surcharge could fluctuate," pointing out that oil prices surged more than $10 (U.S.) a barrel last Friday alone.

Since May 13, WestJet Airlines Ltd. has maintained fuel surcharges of $20 (Canadian) for short haul, $30 for medium haul and $45 for long haul.

Bob Cummings, WestJet's executive vice-president of marketing, said the Calgary-based airline will be monitoring jet fuel prices in the coming days and weeks as it decides whether to increase fees. "We don't want to panic, but we'll have to adapt to the market, if needed."

Mr. Cummings also cautioned that there are a hodgepodge of provincial rules, with Ontario and Quebec requiring tour operators and travel agencies to publish the all-in ticket price, but there isn't any quick fix to resolve federal and provincial discrepancies.

"Everybody needs the same rules," he said.

Consumer advocates have complained that federal legislation passed last June didn't immediately address how Air Canada and WestJet promote their one-way base fares, but the issue has been rekindled with the new fuel surcharges.

Michael Janigan, executive director of the Public Interest Advocacy Centre, said yesterday that the former Bill C-11, which called for more transparency in ticket prices, was watered down as the Opposition Liberals flip-flopped, allowing more "consultation" on the advertising of airfares.

"The airlines are lowballing their fares, and then heaping on a whole bunch of charges, keeping customers in the dark," said Mr. Janigan, who noted that travellers have to click around on carriers' websites to locate an array of extra fees. "Rising fuel prices have caused a genuine crisis in the airline industry, but there should be much better disclosure of airfares by the airlines."

Air Canada lowered its fuel surcharges on domestic medium and long-haul routes in mid-May, after WestJet developed its own fee schedule.

On May 23, Air Canada's flat-rate transborder levy for Canada-U.S. routes rose to $50 one-way from $40.

AIR CANADA (AC.B)

Close: $8.60, down 15¢

WESTJET (WJA)

Close: $14.29, down 46¢