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(Reuters) -Air Canada decided to introduce carry-on baggage fees for some customers to stay competitive with changing market forces in the country, a company executive told a parliamentary committee on Friday.
Earlier this month, Air Canada said 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.
Lawmakers in 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.
Air Canada Executive Vice President of Revenue and Network Planning Mark Galardo told lawmakers the carrier is adding the fees to remain competitive after rival carriers such as privately-held WestJet Airlines made similar changes.
Affected passengers can board with one small personal item such as a purse, but require larger items such as a duffel bag to be checked for C$35 ($24.58).
The committee asked Air Canada and its competitors to submit internal documents about projected revenues from baggage fees.
Earlier this month, a bipartisan group of U.S. senators called out rising airline fees following testimony by executives at most U.S. carriers.
While United charges its lowest-paying travelers $35 for a bag, both American Airlines and Delta do not charge basic economy passengers for a carry-on bag.
Air-passenger-rights advocate Gabor Lukacs said consumer protections in the Canada Transportation Act have eroded over the years, even as basic disclosure requirements for ancillary fees in the U.S. "clearly do not go far enough."
Lukacs told lawmakers the Liberal government could scrap excessive charges by requiring baggage fees be included in the total ticket price advertised and quoted.
(Reporting by Dan Catchpole in Seattle and Allison Lampert in Montreal; editing by Diane Craft and Rod Nickel)