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The federal government is set to announce new rules Friday requiring airlines to include additional fees and taxes up front, when advertising ticket prices. (AP / Julio Cortez) Trudeau Airport officials worry compost will attract dreaded birds.

New rules will force airlines to be more transparent

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The federal government is set to announce new rules Friday requiring airlines to include additional fees and taxes up front, when advertising ticket prices.
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The federal government is set to announce new rules Friday requiring airlines to include additional fees and taxes up front, when advertising ticket prices. (AP / Julio Cortez) Trudeau Airport officials worry compost will attract dreaded birds.

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The federal government is set to announce new rules Friday requiring airlines to include additional fees and taxes up front, when advertising ticket prices. (AP / Julio Cortez)

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Date: Fri. Dec. 16 2011 10:49 PM ET

The federal government announced new rules Friday requiring airlines to include additional fees and taxes up front, when advertising ticket prices.

The regulations will take effect by the end of 2012 -- roughly five years after the federal government first announced it was planning to bring in such measures.

"This will allow consumers to easily determine the full cost of airfares in order to make informed choices," said Steven Fletcher, an MP and the minister of state for transport, in a statement.

Fletcher made the announcement at the Ottawa International Airport on Friday morning, saying consumers deserve more transparency from airlines.

Currently, advertised prices are often much lower than the final charge to a traveller once all the additional fees are added in.

For example, if a family of four were to purchase tickets from Toronto to Florida at an advertised price of $218, the tally would, at first glance, work out to $872.

But when $132 in taxes and fees are included on each ticket, the total rises significantly to $1,400.

The government said in a statement that airlines will no longer be able to omit additional charges from their ads.

"Clause 27 of the Act provides for the making of regulations requiring a carrier to include in the price advertised all costs to the carrier of providing the service and to indicate in the advertisement all fees, charges and taxes related to the service that are collected by the carrier on behalf of another person," the statement said.

The government expects to spend about a year drafting the new regulations.

Mel Fruitman, of the Consumer Association of Canada, called the news nothing more than "an announcement about an announcement," questioning why it's taken so long for the government to act. 

The federal government passed legislation in 2007 that paved the way to bring in tougher airline advertising regulations, but hasn't acted on it until now.

"They've been fiddling around with this for four years or so and now they're finally saying they're going to start drafting legislation and regulations and it's going to be another year," Fruitman told CTV News Channel.

"What's the delay? Why take so long? We need this protection."

Fruitman called the strategy a "bait-and-switch" on the part of the airlines, saying they intentionally lure customers in with low prices that don't reflect the true cost.

"You get them all excited about the prices and then you keep bumping them up and up because you know they're going to buy anyway," Fruitman said.

Following is a list of fees and taxes often tacked onto airline tickets purchased in in Canada:

  • NAV Canada surcharge: Up to $40
  • Canada Airport Improvement Fee: Up to $40
  • Fuel surcharge: Up to $300
  • GST/HST: Varies depending on ticket price and province
  • Passenger Facility Charge: Up to $4.50
  • Online Air Transaction Service Fees: $26
  • Sept. 11 Security Fee: $2.50 (for passengers flying from U.S. airports)
  • U.S. International Transportation Tax: $16.10 (per arrival or departure for travellers to the U.S.)

Comments are now closed for this story

Den
said

All fares displayed on this page are in Canadian dollars, per person per one-way, and do not include taxes, fees or some other charges. Learn more...right off an airline website,maybe if you can't click one more time to find taxes and fees maybe you shouldn't Fly...take the bus..Travel Agents Adds also state Plus Taxes and Fees


Dean in Abby
said

The new rules will also show where gov'ts are gouging the travellers with over taxation and ridiculous "fees".


Merlin
said

To our Governments: PRACTICE WHAT YOU PREACH....Have a look at our old PST, GST ,and now HST,Hotel Tax. what I would want is "what you see is what you pay"....Taxes are included at the gas pumps so why not on all item.How about it BC Government you have to get rid of the HST...so lets see the big change and include the tax in the price.


it's all air
said

Tell me why this can't take effect on all advertising that appears after 90 days or even less. The ads might be booked but the ad copy doesn't get to the media until days before they appear or air. 5 years and nothing and now something but still a year away . . . and this is for consumers!!!


mama
said

Hey Ed, try looking online, I recently found tickets for 4 from Seattle to ft.Lauderdale for slightly less than $1400.All people have to do is research these things, I think travel agents will soon be a thing of the past. I havent used one in over 10 years. I find looking at each airline individually (not expedia, travelocity and such) and then booking hotels elsewhere, seperate saves hundreds!


George Z
said

It's about time. What's the point of saying the price of a trip is $99 if you have to pay $250 in taxes on top of it? We know it's not the airline that's gouging us. That' honour goes to the airport and the gov't. Let me know the full cost of the trip and I'm more likely to book it than getting the surprise fees tacked on at the end.


Canadian Bob
said

I cannot agree more that the airline industry has been very misleading in the manner in which they advertise their ticket prices. It's wonderful to see the government after five long years of making promises to act on this actually do something about it. But, as we know, Conservative MP's and definitely our Ministers are more accustomed to more expensive ways of flying around, so I completely understand their delayed interest. Too bad it will take them a whole additional year to draft these new regulations. I can understand why they wouldn't want to rush this and forget about any necessary amendments like they did with their oh-so-vital crime bill. Now if only the Conservatives could adopt some of the same promised transparency in the way they govern Canada as they expect from these airlines, they might actually be on to something?


Mangot
said

RG; airlines make pennies margin, while we have all thes extra charges for doing very little except rake in the cash. Keep them separate, and then I can know what additional fees I am paying for.Must be an NDP sending this email.


ROC
said

Why should the consumer be hit with a price increase at the cash register with any produce? At the end of the day who cares what all the fees are and where they go. They can be itemised on the receipt anyway. Tourists that are not used to this in their country have a difficult time with this.


Paul
said

Transparent yes, however, it will do nothing to change the price. Flying is a luxury and you must pay the piper for that luxury. Is the government doing me a favor or wasting $ on such frivorlous legistation? Waste of money.


Jay Merchant
said

I migrated to Austalia and we do that in Australia...its all in pricing...as is everything in the stores...tax is already included in everything we purchase here...its awesome. Yet something else Australia has that Canada needs!


Howard in Brampton
said

To @ CostAccountant: Everybody in Canada pays fuel surcharges on everything they buy. You just don't see it itemized in the prices you see. There's very little if anything that most Canadians purchase that hasn't been on a truck at some time or the other. All carrier have a fuel surcharge. Being in the transportation business, I write with a bit of authority on this matter. Some of my customers want to see the Fuel Surcharge itemized separately so they can identify base rate fluctuations, and some don't. Regardless, these costs are all eventually passed on to the end user.


Doug
said

Good news. The "sticker shock" will probably encourage more people to avoid flying or just fly from the U.S.Great idea! Airline unions are constantly whining about salaries and benefits but they should be using their so called solidarity to demand that the sneaky and sleezy user fees are reduced or dropped altogether.But they don't do this, do they? So we drive to destination or fly from the U.S.


shawbrooke
said

The measure allows government to hide how much they are taking from every ticket. It's terribly unfair to the airlines. I hope there's a watch dog out there somewhere who will warn us when the government takes advantage of the lack of accountability to increase taxes.


CostAccountant
said

The one I always wonder that certain parties get away with is the "FUEL SURCHARGE".......
This is like going to the hairdresser for a haircut and being told that the fee is $5.00
.... and and the checkout being told that "Oh, plus a scissors charge of $20 brings the total to $25"....




Elliot Imeson
said

I don't understand why the airlines are being made out to be the bad guys just because of several layers of government taxes. If you look at the historical cost of flying you will find that it was cheaper today then it was 25 years ago. The flying public has no idea how expensive it is to operate an airline. The reality is that while the government is making huge money in taxes per flight, airlines are profiting just pennies if their profiting at all.


Tom
said

I would rather have them separate. It just plays right into the hands of the gov't to have them included. It makes it much easier to increase security, and AIF and have us paying public blame the airlines. If the fees are separate you can at least see it is not always the airline.


tim
said

this is simply insisting on truth in advertisingnot too much to ask in a civilized society


87yugo
said

cost more to flight domestic than international. You pay top dollars to Air Canada to be cattle herd and you have to endure their crappy service. What about a seat booking fee? What kinda crap is that? Need more competititon in Canada! If Air Canada get put out of business cause it can't keep up, "let it be" but I will not spend a cent on them!


a simple solution
said

Let`s start manufacturing planes that could save an abundant of fuel or if not that do not require any fuel for lift-off. Once that could be accomplished and I`m sure it can be done. Just imagine how much cheaper air fares will be to fly anywhere. Then let`s forget about any proposed expensive high-speed rail service anywhere in Canada.


John
said

Peter, get your head out of your political ass. This is a good thing and I wish they would do the same for the "smart liberals idea that people want to know how much tax we are paying on items at the checkouts". Incorporate it all into the sticker price so we know what the final price will before we go to checkout


RZ
said

One of the few occasions where I actually agree with the Conservatives. This false advertising has to stop in which air fares end up 50% higher than advertised (e.g. Toronto-Moncton may be advertised at $139 one-way and ends up being $400 round trip), and Canadian airlines need to be pressured to lower their fares. After all, using a foreign airline (e.g. Air France, Lufthansa, etc.) is significantly cheaper for international travel than an equivalent Air Canada flight. And the deal gets even better if you live close enough to a US airport.


Don
said

I don't care, I don't fly......


Pilot
said

Passengers should also be told how much there flight ACTUALLY COST the airline so they can see how cheap airfares actually are. When it costs as much for the ticket than it did to take a cab to the airport there's a problem and it's not that airfares are too expensive.Why should airfares be SO CHEAP? Airfares havn't gone up in decades yet the cost of doing business as an airline has sky rocketed. People are not thinking straight when they think it should cost less to fly than drive!


Peter
said

Yada, yada. And if I sign on the dotted line fewer advertisers will make unsolicited calls to me -- oh yeah, that worked well. How will the government allow them to find a way around this one while appearing to be on the side of the consumer? Sorry to be so cynical but look what we've got for a government. Lack of information and lies and dirty tricks. What a proud nation we are.


Dave, Ottawa
said

Family of 4 from Plattsburgh, NY to Orlando, round trip, could cost as little as $650. Drive a liltte, save a lot.


Peter
said

No, no and no. This is so wrong in a free enterprise system. Why is the government interferring with a system that works perfectly well. I can fly anywhere in the world for $20 plus taxes. Why would we do away with this system? Outrageous.


Mo & LA
said

OMG! Finally! Now, why limit it to airlines? Include cellular phone companies. Include those few restaurants that still add on a "mandatory" tip, usually 15% automatically on the bill. We have lived all over the world. In most places the price is the price, all taxes and charges included; no need to worry when you arrive at the cashier whether you have enough money in your purse to cover the extra taxes and such. As for those that argue they want to see the individual charges, no problem. Have them printed out on the receipt "below the line".


Mike
said

How about affordable domestic flights. I want that.


panchovilla
said

They airlines post their rate so you can see what the government is doing to you. If they post a rate of $99 that is their rate, the Government is to blame for the taxes and fees.I wouldn't be blaming the airlines for that.


Wendy
said

Baggage fees should be included as well!


Craig from NS
said

One of those rare moments where the (C)onservative, (R)eform, (A)lliance (P)arty in Ottawa makes a sensible decision. I just wish they were more transparent themselves, as they long ago promised. Nice to see a conservative fiscal watchdog group criticizing the "Harper Government" for excessive spending by its ministers, over the last few days.


joe canada
said

I flew to Germany with my daughter when she was 6 months old. The airlines said she would travel for free because of her age. With applicable taxes and service fees, FREE cost $400. Still trying to figure out how there was tax on free, Gotta love Air Canada. Have never flown with them again.


Kitlope
said

Didn't they bring in rules like this a few years ago?Nice to see it worked.


Ryan, Guelph
said

When I was in England a decade ago, they included tax on the sticker price of everything. No surprises when you get to the register. It would be nice if they did that here. Hopefully this is a first step towards that end.


AJ
said

It's about time... We must force the government to introduce a similar bill for everything. So we don't have to calculate how much more are we going to pay? What's so difficult? It must be, the price you see... is the price you should pay... no more no less


Ed
said

Family of 4 for $1400 to Florida? What year were you referring to...1970?


Prof. Pye Chartt
said

I can picture the OCD anti-Conservatives, with furrowed brow and their fingers pressed firmly against their temples, perspiring, desperately trying to come up with a criticism of this measure. (Just relax. Do what you folks readily do: rag about something else that Harper & Company have done that, supposedly, bugs you.)


Theo
said

I wish they'd do the same thing with retailers.


Annette
said

Finally, the public will see the airlines are not the bad guys here! They will see a true breakdown of where each dollar goes, and how little of the ticket prices actually goes to the carrier.


Paul
said

What about baggage fees?


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