Posted by & filed under Accounting Principles, Financial Reporting and Analysis, Marketing & Strategy, Student life.

Description: Air Canada recently reported its best quarter in corporate history. No doubt all those extra fees airline customers have to pay fit somewhere into that profitable picture. In the US, this so-called ancillary income – where it is disclosed – is up from $2.5 billion back in 2005 to $31.5 billion for 2013. That’s a lot of extra cash for a bit of extra legroom.

Source: Globe and Mail.com

Date:  January 8, 2015

Link: http://www.theglobeandmail.com/globe-debate/a-golden-age-of-flying-yours-for-a-few-extra-fees/article22359782/

Discussion Points:

1) Have you had any surprises about the ancillary fees airlines charge? What has been your experience in some of your travels to and from university?

2) The wording in the article indicates that not all airlines may be disclosing these ancillary fees. What is your opinion on whether or not such fees should be disclosed in the airlines’ financial statements?

3) Some of things we now pay extra fees for – like a bit of extra legroom and checked baggage – were once included in the standard airfare. What has caused many airlines to now bill separately for these items that were once considered standard?

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