By Kristine Owram, The Canadian Press
TORONTO - Air Canada travellers who fret over leaving Fifi at home when they fly can relax, the airline is once again allowing furry companions in its cabins.
The airline (TSX:AC.B) announced Wednesday that travellers can bring their cats or small dogs on the plane with them starting July 1 for a fee of $100 for domestic return flights and $200 for an overseas trip.
Passengers are asked to register their pets in advance, as a maximum of two animals are allowed on the smaller Jazz planes, with four allowed on the larger Air Canada flights.
The company has changed its policies on pets several times. In September 2006, the airline said it would no longer allow pets in the cabin due to allergy concerns.
Nine months later, the company said it wouldn't accept pets in the cargo hold either due to the need for more space for luggage.
Air Canada spokesman Peter Fitzpatrick said the reversal is part of a "renewed commitment to the customer" on the part of new president and CEO Calin Rovinescu.
He pointed to a new low-fare guarantee, the reversal of a decision to charge customers for a second bag and the elimination of call-centre fees as other customer-friendly steps the airline has taken.
"Like all businesses we constantly review and update our policies, and that's what's happened here," Fitzpatrick said Wednesday.
"It's all part of a general strategy that we have here to improve our relationships with our customers."
Air Canada has been struggling because of increasingly cut-throat competition from other airlines like WestJet, as well as the recession, the onset of the H1N1 influenza virus and rising fuel costs.
The cash-strapped airline says it is looking for $600 million in new funding. Finance Minister Jim Flaherty said Tuesday the federal government is in talks with the airline to provide it with millions of dollars in loans.
The company has also reached tentative deals with all five of its major unions that include a pension funding holiday and equity restructuring.
Airline analyst Jacques Kavafian said Air Canada's reversal on its pet policy is likely an attempt to win back customers that it lost to WestJet (TSX:WJA) when it started "nickel and diming" customers.
"It's part of their strategy to gain market share back that they lost to WestJet when they implemented all those policies, not necessarily only with the pets, but also other things, like call-centre fees and charging for pillows and blankets, things like that," Kavafian said.
"So they've eliminated a lot of the nickel and diming they were doing that annoyed passengers, they're removing those to gain passengers back."
WestJet has always allowed pets in its cabins, and spokesman Robert Palmer described it as "the pet-friendly airline."
While the concept of cats and dogs in such close proximity to travellers may raise concerns among allergy sufferers, Palmer said he rarely hears complaints from customers.
"We don't get a lot of feedback on that, surprisingly," he said. "If we do, what we try to do is we try to separate the two, the person with the animal and the person with the allergy. We put them as far apart as we possibly can."
"It's something that we get a lot of positive feedback on. People really appreciate the fact that they can bring their pets on board."
Fitzpatrick said Air Canada will also separate pet from allergy sufferers which, combined with the limit on the number of animals per flight, should be enough to assuage customers' concerns.
A spokeswoman for the Allergy/Asthma Information Association said about 25 per cent of the population is affected by asthma and allergies and these people are finding themselves with fewer and fewer travel options.
"Asthma's an allergic disease and pets and pet dander definitely can be a trigger for many people with asthma, so this is certainly going to be an issue for many people with asthma, as well as those with allergies," said Ontario co-ordinator Monika Gibson.
Fitzpatrick recommended travellers with allergies inform Air Canada ahead of time so they can be accommodated. He also said they should talk to their doctor and make sure they have medication with them on the plane.
Air Canada shares fell three cents to $1.59 in Wednesday trading on the Toronto Stock Exchange.
