Air Canada responds to high fuel prices with temporary fuel surcharge for travel in Canada

MONTREAL, May 24 /CNW/ - In response to sustained high fuel prices, Air Canada announced today the implementation of a fuel surcharge of $15.00 CDN one way for travel on domestic routes, effective on tickets purchased as of May 31, 2001. The fuel surcharge is temporary and will be adjusted according to market fluctuations in fuel prices.
Air Canada's domestic surcharge compares to an $18.60 USD ($27.16 CDN) fuel-related one way domestic surcharge by major US carriers. A fuel surcharge has been in place in the US domestic market since January 2000. In addition, US carriers have implemented, on average, an 11 percent domestic fare increase since January 2000, compared to Air Canada's 6 percent domestic fare increase, which was announced on December 21, 2000 and was effective January 1, 2001.

"In 2000, Air Canada made a voluntary public commitment to not increase domestic fares during the first year of integration. We met that commitment, however we significantly constrained our ability to compensate for fuel price increases, which, in total, adversely affected our operating income by almost $400 million in 2000," said Lise Fournel, Executive Vice President,
Commercial. "This surcharge provides transparency on the impact of fuel prices
on our operational costs," she added.
In addition, effective May 31, 2001, Air Canada will adjust its NavCanada surcharge for one way domestic travel from $7.50 CDN to $9.00 CDN, which is in line with recent NavCanada fee changes announced by other Canadian carriers.

So an increase of $16.50 each way makes it $33.00 roundtrip, pretty soon we'll have to calculate the domestic fares like US ones -> double the base fare.

That's it I've had it - My Western travel is now gone to Westjet which has no surcharges for fuel and I haven't heard of a NAV Can increase. On a $200 ticket to Vancouver AC has effectively raised its fares by over 15% which is quite significant. Our firm no longer uses AC for western shorthauls and I suspect this announcement will move many more clients over to Westjet which now flies more pax YEG-YYC than does AC and is neck and neck with AC on YEG-YVR.

Okay ... I can see the arguement for a fuel surcharge. We all know fuel prices are much higher now than they were last year. But ...

Why does this only apply to domestic routes? Shouldn't the same arguement apply to transborder and international fares? Oh, yes, that's right, there's competition on those routes.

(What really irks me is that these "surcharges" are not included in the advertised fares and are lumped together as "taxes" when really they are part of the fare.)

Why does this only apply to domestic routes? Shouldn't the same arguement apply to transborder and international fares? Oh, yes, that's right, there's competition on those routes.

There are already fuel surcharge on US routes which explains why the final fare is always outrageous compare to the base fare. Wait for the day that they make us tip the flight attendants for serving us.

There are already fuel surcharge on US routes which explains why the final fare is always outrageous compare to the base fare. Wait for the day that they make us tip the flight attendants for serving us.

I'm waiting for a base fare from YYZ-LHR for $49 return ... plus $700 in surcharges and fees (airport fee, customs and immigration fee, navigation surcharge, fuel surcharge, food surcharge, crew surcharge, plane surcharge ...).