'Predatory monopoly': Canadian North, feds criticized over new baggage fees

Canadian North and the federal government are facing criticism over major changes to the airline's baggage rates, effective on tickets booked as of today. 

Two weeks ago, the airline unveiled sweeping changes and increased costs. While passengers still receive their first bag for free, the cost of a second bag on the lowest ticket fare has jumped by 50 per cent, and the cost of an overweight bag (anything over 51 pounds) has tripled on all fare types.

"Because we have such a heavy reliance on airlines for transportation and cargo most of the year, it's a staggering impact on the cost of living," said former Nunavut senator Dennis Patterson.

"It's well known that people always [maximize] their baggage allowances. And so to hit people who are bringing up essential goods that they can't otherwise get in the North when they're travelling from southern Canada is punitive. It's really punishing."

Iqaluit resident Nicole Jackson echoed Patterson's concerns. She said while the changes don't affect her so much, people from smaller communities will be hit hard bringing goods up from the capital — particularly after Canada Post closed a loophole last month many communities were exploiting to gain access to Amazon's free shipping.

"So this greatly affects them when they're travelling, if they can bring some things that they need back home," Jackson said.

"Having to pay that extra baggage fee, I mean, it's tough. Like, folks just can't afford it."

This appears to be the second time Canadian North has increased baggage rates since its merger with First Air in 2019 — based on a CBC News analysis using archived web pages from the Internet Archive, a non-profit digital library. The last time the airline raised its baggage prices was May 1, 2023.

The now $86.25 fee for a second bag represents a 114.29 per cent increase since April 2023, and the $172.50 it costs for a bag weighing 51 pounds represents a 500 per cent jump since then.

The changes also mean customers can check in a maximum of three bags at the counter. All other bags will have to travel in cargo. 

Second and third bags will also travel standby and, if the aircraft is full, will be sent on a different flight when there is space available, the airline stated in an updated baggage policy on its website. 

"This was entirely predictable and can be blamed on, firstly the federal government," Patterson said, referring to Transport Canada's approval last year of revised terms and conditions to the First Air merger. At the time, Patterson described the approval as "totally shocking."

"Conditions were put in place to protect consumers from this kind of predatory monopoly."

The new conditions allowed Canadian North to hike passenger and cargo rates by up to 25 per cent per year, whereas under the previous merger conditions fares were locked in for seven years beyond those related to operating costs.