The regulations will take effect by the end of 2012.
“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 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.
Following is a list of fees and taxes often tacked onto airline tickets purchased in Canada, but rarely mentioned in advertising:
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.)
It’s good that airlines are going to be more transparent with their customers about how much it really costs to get places.