Dec 13 (Reuters) - Air Canada ( ACDVF ) 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 ( ACDVF ) 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 ( ACDVF ) 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 ( ACDVF ) 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 ( AAL ) 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.