May 19, 2020

The concern of excess baggage: Will Air Canada's carry-on rule change how you travel?

Business
Canada
Air Canada
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3 min
The concern of excess baggage: Will Air Canada's carry-on rule change how you travel?

Are you planning on taking a business trip in the near future? Whether you have upcoming travel plans that center on work or pleasure, you may be able to benefit from learning about Air Canada’s carry-on rule. While the rule isn’t a new one, the airline has been enforcing it, meaning traveling could cost even more money.

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Air Canada may be paying extra attention to your carry-on bag, making sure your luggage perfectly fits the requirements that allow you to bring it onto the plane. But what started this recent crackdown and will it make a difference in how you travel? It’s safe to say that someone is going to suffer by this change, but will it be you—the passenger—or them—the airline?

RELATED TOPIC: Too much baggage? Is Air Canada at fault for delays and lost luggage?

 It all started with a price change. Last fall, once Air Canada established their new $25 fee for a passenger’s first checked bag on all domestic economy flights, travelers attempted to avoid this extra expense by stuffing their carry-on bag to the complete maximum, even if that meant the piece of luggage became too big and fell out of the required size components for carry-on  pieces.

Regarding the issue, airline analyst Barry Prentice has said, “Everybody just hates to be nickeled and dimed.” And though this explains passenger’s motives for overstuffing carry-on bags, here is what Air Canada is specifically doing:

Agents will be placed at both check-in and security areas to physically make sure all bags meet size limits. A tag will then be issued if the bag can be carried onto the plane. However, if the piece of luggage doesn’t meet the stated size requirements, then it will have to be properly checked. Even if a passenger is caught later (i.e. at security), he or she will still be ordered to go back and check the offending bag.

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Prentice believes that the chaos that has been known to take place at airports will only continue. Because people will always try to save money, passengers will most likely attempt to beat the system and over stuff their carry-on bags.

However, Air Canada employees are feeling quite optimistic about the enforcement of the rule, meaning it’s probably not going anywhere anytime soon. Specifically, Michel Cournoyer, president of the union who represents Air Canada flight attendants, has said the following:

“The Air Canada flight attendants are very much on board with this initiative. We realize the problem it causes and Air Canada wants to be on time for its passengers,” he says.

The airline not only has faith in this new enforcement, but believes that it will create more room for the carry-on bags that meet regulations, as well as assist in flights taking off and landing on time. Therefore, the airline may not be worried about losing clientele, but will they?

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As a passenger, what are your feelings on this issue? Do you agree with the airline regarding overstuffed carry-on bags and believe there should be a charge for even one checked bag? Or do you feel as if there are too many fees and now plan on finding a new way to travel? Let us know!

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Jun 8, 2021

Six issues at the top of tax and finance leaders’ agenda

Tax
Compliance
financeleaders
Deloitte
Kate Birch
4 min
As businesses accelerate their transformation journeys, tax leaders are under increasing pressure to add strategic value. Deloitte reveals six tax trends

New Deloitte research reveals that tax leaders are under increasing pressure to add strategic value as companies accelerate business model transformation, from undergoing digital transformations to rethinking their supply chains or investing in green initiatives.

According to Phil Mills, Deloitte Global Tax & Legal Leader, to “truly deliver value to the business, the tax function needs to rethink its resourcing model and transform its technology infrastructure to create capacity and control costs”.

And the good news, according to Mills, is that tax and business leaders have more options at their disposal to achieve this.

Reflecting the insights of global tax and finance executives at global companies, Deloitte’s Tax Operations in Focus study reveals the six issues at the top of tax and finance leaders’ agenda.

Trend 1: Businesses seek more strategic counsel from tax

Companies are being pushed to develop new digital products and distribution channels and accelerate sustainable transformation and this is taking them into uncharted tax territory. Tax leaders say their teams must have the resources and skills to give deeper advisory support on digital business models (65%), supply chain restructuring (49%) and sustainability (48%) over the next two years. This means redrawing the boundaries of what tax professionals focus on, and accelerating adoption of advanced technologies and lower-cost resourcing models to meet compliance requirements and free up time.

According to Joanne Walker, Group Tax Director, BT Group PLC, "There’s still a heavy compliance load today, but the vision for the future would be that much of that falls away, and tax people become subject matter experts who help program the machine, ensure quality control, and redirect their time to advisory activity.”

Trend 2: Tipping point for resourcing models

Business partnering demands in the tax department are on the rise, but 93% of tax leaders say their department’s budget is remaining flat or falling. To ensure that the tax function can redefine itself as a strategic function at the pace that is required, leaders are choosing to move increasing amounts of compliance and reporting to a combination of shared service centers, finance departments, and outsourcing providers that have invested in best-in-class technology.

Trend 3: Digital tax administration is moving faster than expected

in addition to the rising focus of the corporate tax department partnering with their business counterparts, transformative changes to the way companies share tax information with revenue authorities is also creating an imperative to modernize operations at a faster pace. Nine in 10 (92%) respondents say that shifting revenue authority demands on digital tax administration will have a moderate or high impact on tax operations and resources over the next five years—and several heads of tax said the trend is moving faster than expected.

"It’s really stepped up in the last couple of years," says Anna Elphick, VP Tax, Unilever. "Tax authorities don't just want a faster turnaround for compliance but access into a company’s systems. It's not unreasonable to think that in a much shorter time than we expect, compliance will be about companies reviewing a return that's been drafted by the tax authorities."

Trend 4: Data simplification and lower-cost resourcing are top priorities

Tax leaders said that simplifying data management (53%) and moving to lower-cost resourcing models (51%) must be prioritized if tax is to become more proactive at delivering strategic insights to the business. Many tax teams are ensuring that they have a seat at the table as ERP systems are overhauled, which is paying dividends: 56% of those that have introduced NextGen ERP systems are now highly effective at supporting the business with scenario-modeling insights. Only 35% of those with moderate to low use of NextGen ERP systems said the same.

At Stryker, “we automated the source P&L process for transfer pricing which took a huge burden off of the divisions," says David Furgason, Vice President Tax. "Then we created a transfer price database to deposit and retrieve data so we have limited impact on the divisions. We are moving to a single ERP platform which will help us make take the next step with robotics.”

Trend 5: Skillsets are shifting

Embedding a new data infrastructure and redesigning processes are critical for the future tax vision. Tax leaders are aligned — data skills (45%) and technology process experience (43%) are ‘must have’ skills in a tax department of the future, but more traditional tax specialist knowledge also remains key (40%). The trick to success will be in tax leaders facilitating the way these professionals, with their different backgrounds, can work together collectively to unlock lasting value.

Take Infineon Technologies, which formed a VAT technology and governance group "that has the right knowledge about how to change the system to ensure it generates the right reports", according to Matthias Schubert, Global Head of Tax. "Involving them early was key as we took a greenfield approach, so we could think about what the optimal processes would look like and how more intelligent systems could make an impact 

Trend 6: 2020 brought productivity improvements

Improved productivity (50%) and accelerating shifts to remote working (48%) were cited as the biggest operational benefits to emerge from COVID-19-driven disruption. But, as 78% of leaders now plan to embed either hybrid or fully remote models in the tax function long term, 34% say maintaining productivity benefits is a top concern. And, as leaders think about building their talent pipeline and strengthening advisory skill sets, 47% say they must prioritize new approaches to talent recognition and career development over the next two years, while 36% say new processes for involving tax in business strategy decisions must be established.

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