The CEO of Air Canada will address a Canadian government committee panel on Friday about carry-on baggage fees, according to a meeting notice, after the country's largest carrier recently announced such charges for basic economy fares. Lawmakers in both Canada and the United States have criticized airlines in recent weeks for levying additional fees on luggage and seat assignments, following an outpouring of anger by passengers on social media. Analysts say ancillary revenue earned from charges like baggage fees has become the mainstay of the airline business worldwide. Ancillary revenue is estimated to jump 26% year-on-year to $148.4b in 2024, accounting for about 15% of airline revenue across the globe, according to a report by travel consultancies CarTrawler and IdeaWorksCompany. Air Canada Chief Executive Mike Rousseau will speak by videoconference, joining other airline executives, after the carrier said last week it would charge passengers for bigger carry-on bags if they opted for its lowest-priced fare for North American and Caribbean routes starting on Jan. 3. Alexis von Hoensbroech, CEO of WestJet Airlines, which has a similar policy, will also address the Standing Committee on Transport, Infrastructure and Communities, according to a meeting notice. Charges will also be discussed during a Friday meeting between Transport Minister Anita Anand and Canadian airline executives.<br/>
star
A small claims court has ordered Air Canada to pay a couple $10,000, after an overbooked flight resulted in the two being sent to multiple Canadian airports under the promise of a replacement flight that never materialized, ruining a vacation that had been planned for years. A blistering decision from the Small Claims Court of Yukon concluded that the couple were "treated shamefully" by the airline. Justice Katherine L. McLeod wrote that Air Canada had breached the Air Passenger Protection Regulations (APPR) multiple times and put the couple through a "horrendous experience." The APPR lays out the obligations that airlines have to their passengers in the event of issues such as flight cancellations, delays and damages to luggage. The couple, who live in Yukon, had saved up for three years so they could take their first vacation without their kids. They arranged time off work and child care for their three children for the nine days that they were going to be at a resort in Cuba, a trip that was scheduled for February 2023. According to the legal decision, when they arrived in Toronto for their Air Canada flight to Cuba, they found it had been overbooked. Passengers were told that if they volunteered to give up their seats, they would be compensated and booked on an American Airlines flight leaving later that day, which could ultimately get them to Cuba. Air Canada acknowledged that this situation falls under "denial of boarding," the decision stated.<br/>
Deutsche Lufthansa called on the European Union to suspend its bilateral aviation agreement with Qatar, citing corruption allegations against the Gulf state that also owns Qatar Airways. Lufthansa Chairman Karl-Ludwig Kley wrote to European Commission President Ursula von der Leyen, calling for the suspension of the 2021 agreement, which allows unlimited flights between any airport in the EU and Qatar. The letter follows investigations into the so-called Qatargate affair, in which European Parliament officials were allegedly bribed by the state. “In view of the serious allegations of corruption, the EU-Qatar air transport agreement must be suspended immediately,” Kley and his co-chair Christine Behle wrote in the letter, a copy of which was seen by Bloomberg News. A Qatar Airways’ spokesman declined to comment on the Lufthansa letter. The intervention by Lufthansa’s supervisory board leaders comes after Qatar Airways added flights between Hamburg and Doha, giving the Gulf carrier a fifth city pair in Europe’s largest economy. The new service, which started in July, allows travelers in northern Germany a way to fly to Asia and other destinations in the Middle East via Doha, bypassing Lufthansa’s hubs in Munich and Frankfurt. Lufthansa’s supervisory board also complained about European carriers being at a disadvantage to their Asian rivals as they were unable to overfly Russia, forcing carriers such as Lufthansa and Air France-KLM to fly more circuitous routes. <br/>
Ethiopia and Somalia agreed to lower tensions over a deal that would allow Addis Ababa to build a military base on the coast of the breakaway region of Somaliland in exchange for a stake in its national airline. “We have taken the first step toward a new beginning based on peace and cooperation between Somalia and Ethiopia,” Turkish President Recep Tayyip Erdogan said early Thursday as he announced the deal he brokered between Ethiopian Prime Minister Abiy Ahmed and Somali President Hassan Sheikh. Under a previous accord announced Jan. 1, Somaliland had granted Ethiopia the rights to establish a military base and commercial facilities on its coastline. In exchange, Somaliland would get an unspecified stake in Ethiopian Airlines, while Africa’s second-most populous country would consider granting it formal recognition. Somalia protested, saying the deal violated its territorial integrity. Somaliland declared its independence from Somalia in 1991, but has since failed to gain widespread international recognition as a sovereign state. The “Ankara Declaration” agreement to de-escalate tensions followed the election of Abdirahman Mohamed Abdullahi, a former speaker of parliament popularly known as Irro, in Somaliland last month. That result cast doubt over whether the semi-autonomous region would honor the Ethiopia deal to build a military base on its coast. For now, Somalia and Ethiopia have agreed “to forgo and leave behind differences and contentious issues and forge ahead” and start technical negotiations to resolve disputes with Turkey’s help “no later than end of February 2025,” a joint declaration said. <br/>
Korean Air closed its long-delayed deal to take over Asiana Airlines on Wednesday, paying the remaining 800b won ($558.58m) to secure a controlling stake in the cash-strapped airline. This allows the nation’s flag carrier to secure a stake of 63.88% in Asiana. Korean Air has so far injected a total of 1.5t won to complete the high-profile acquisition and launch the mega-sized full-service carrier. Starting Thursday, Asiana Airlines will be incorporated as a subsidiary of Korean Air. The converged carrier is set to become the world’s 11th largest airline by annual passenger volume. It will also operate a total of 238 aircraft and employ some 27,000 staff. Korean Air will manage Asiana Airlines as a separate entity for the next two years, while undertaking a comprehensive integration process, including aligning corporate cultures and merging their mileage programs. In January, the flag carrier plans to appoint new leaders for Asiana Airlines and its two low-cost carrier subsidiaries — Air Busan and Air Seoul — via Asiana's temporary shareholders' meeting as part of their first manpower adjustment. Story has full details.<br/>
Air New Zealand has expanded its partnership with USA-based electric aircraft manufacturer Beta Technologies, as it moves close to introducing battery-electric aircraft on regional cargo flights in 2026. The Star Alliance operator will acquire a demonstrator aircraft – the Alia CX300 aircraft – from Beta, which it will operate as part of a technical demonstrator programme from April 2025. The aircraft will be based at Hamilton airport initially, where it will complete a series of proving flights. “From there, the Air New Zealand and Beta teams will gradually expand flights to surrounding airports before making the journey to Wellington, where it will complete flights designed to replicate the cargo operation planned in 2026 with New Zealand Post,” the airline states. The announcement comes a year after Air New Zealand first entered into a partnership with Beta, which saw it place a firm order for one electric conventional take-off and landing (CTOL) aircraft, alongside options for two more and rights for a further 20. It had intended to deploy the aircraft on cargo-only flights. The carrier later confirmed Wellington and Blenheim as the two airports that will the Beta CTOL aircraft will operate cargo flights from. Says Air New Zealand: “Having the aircraft type here before commercial services start gives the airline a longer runway to understand how the aircraft will perform in New Zealand, begin pilot and crew familiarisation, and allow ample time to share the technology with New Zealanders.” As part of the expanded partnership, the carrier will also invest in charging facilities at Hamilton, Wellington and Blenheim airports.<br/>