WestJet Airlines continues to evolve its business strategy with first bag fees. Air Canada next

After acting coy during the past year about possibly introducing a fee for a first checked bag, WestJet has opted to add the charge into the lowest level of its tiered fare bundles as it seems to be catering to all types of passenger segments.

Of course WestJet's rationalisation is that it is simply migrating toward the new industry normal of a fee for service model that most airlines promote as giving customers more choice and control over their travel experience. But the reality is the new fee should produce a nice revenue bump for WestJet as it works to fully exploit product unbundling for cost conscious travellers. However, the airline needs to carefully manage how its new charges are perceived among its passengers as the fees have already generated some backlash in social media.

Obvious questions are also lingering about whether Air Canada will join its domestic rivals WestJet and Porter in introducing a fee for the first checked bag on domestic flights. After a suitable time to allow the dust to settle Air Canada will almost certainly follow suit. But WestJet's fellow hybrid-like airline JetBlue is also likely watching WestJet's moves since JetBlue has indicated its new fare bundles debuting in 2015 create a framework for it to introduce a first checked bag fee.