CRYING FOUL

Canada’s Airlines Push Back Against New Refund Rules to Go Into Effect in SEP

Plane at airportNew rules protecting passengers on Canadian flights come into effect 08SEP - and Canada’s airlines say they are unfair and come at the wrong time.

Open Jaw reported on the new Regulations Amending the Air Passenger Protection Regulations on 22JUN, when Canada’s Transport Minister unveiled the federal government’s new playbook designed to "ensure Canadians' interests are protected when they travel by air."

The new slate of rules were tabled as unprecedented chaos overwhelmed operations in Canada’s (and many global) airports, resulting in devastating levels of delays, cancellations, lineups, and lost luggage.

Key among the new regulations developed by the Canadian Transport Agency (CTA) is a provision that pax will receive full refunds from airlines regardless of whether the cancellation or delay of a flight is within the airline’s control. 

Previous consumer protections applied only to situations within the airline’s control. The new requirements will apply to all delays and cancellations even beyond an airline’s control.

The new regulatory requirements apply to flights to, from and within Canada, including connecting flights, and:

  • Require airlines to provide a passenger affected by a cancellation or a lengthy delay due to a situation outside the airline's control with a confirmed reservation on the next available flight that is operated by them or a partner airline, leaving within 48 hours of the departure time indicated on the passenger's original ticket. If the airline cannot provide a confirmed reservation within this 48-hour period, it will be required to provide, at the passenger's choice, a refund or rebooking;
  • Identify what costs must be refunded (unused portion of the ticket, which includes any unused add-on services paid for);
  • Identify the method to be used for refunds (same as the original payment, e.g., a return on the person's credit card);
  • Require airlines to provide a refund within 30 days.

Airlines Fire Back

But just weeks before those new rules take effect, Canada’s airlines are pushing back.

According to National Airlines Council of Canada (NACC) CEO Jeff Morrison, they unfairly place all the responsibility for delays and cancellations on the airlines.

“Airlines will essentially be required to shoulder the entire burden of responsibility for flight disruptions, despite the fact that so many other partners and players are involved in the air travel experience,” he told the National Post, including security and customs, which the airlines do not control.

WestJet spokesperson Madison Kruger agreed the accountability and financial burden of delays and cancellations should be shared. “Requiring airlines to be the sole provider of reimbursement for delays outside of the airline’s control creates an unbalanced system that does not reflect the responsibility that we collectively hold to the Canadian traveller.”

The airline says any new refund rules should be delayed until pandemic restrictions - including mandatory use of the ArriveCAN app - are no longer in place.

“These new regulations are in place at a time when something like 60 countries in the world have completely done away with pandemic restrictions. We still face them so that’s another concern.”

Disputing Claims

Airlines are not without recourse under the new regulations. They can deny pax’ claims.

As the National Post points out, “even under the current rules passengers have complained that airlines have said issues like crew shortages are beyond their control,” prompting the CTA to recently warn airlines that they must provide evidence to claim a crew shortage is beyond their control.

Pax can then appeal denied claims to the CTA.

Ironically, however, as Open Jaw reported 11AUG, the CTA itself is claiming it is short staffed, resulting in a growing backlog of unresolved air passenger complaints.

According to the regulator, the backlog of complaints grew to more than 15,300 in MAY, and has since risen further "in the last month or so," during a chaotic summer of travel.

It reportedly takes the CTA around 19 business days on average to resolve a complaint once it reaches a staff member’s desk. However, by the CTA’s own admission, complaints can take a year before being processed, as case numbers continue to climb.


Lynn Elmhirst

Contributor

With a background in broadcast news and travel lifestyles TV production, Lynn is just as comfortable behind or in front of the camera as she is slinging words into compelling stories at her laptop. Having been called a multi-media ‘content charmer’, Lynn’s other claim to fame is the ability to work 24/7, forgoing sleep until the job is done. Documented proof exists in a picture of Lynn at the closing celebrations of an intense week, standing, champagne in hand - sound asleep. That’s our kind of gal.

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