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Transport Committee Looks to Regulate Refunds, Pax Rights and Airline Financial Support

The Parliamentary Standing Committee on Transport, Infrastructure and Communities
The Parliamentary Standing Committee on Transport, Infrastructure and Communities

The Standing Committee on Transport, Infrastructure and Communities has some strong opinions about how Canada’s aviation industry should operate coming out of the COVID-19 pandemic.

It issued a report Wednesday, and according to The Star, it called for a slew of recommendations that both pax and airlines may welcome - although it doesn’t suggest giving Canada’s airlines any free rides.

The committee acknowledged the sector would need continued financial support - beyond current subsidies - and recommended that, “programs like wage subsidies and rent relief must continue past the summer for airlines and airports.”

“There is no doubt that the air transport sector is critical to Canada’s economic recovery and to the connectivity of the entire country,” said Liberal MP Vance Badawey, who is chair of the committee.

In addition to “more monetary relief for airlines and airports,“ recommendations also included “better protections for the rights of air travellers, and immediate refunds for customers.”

The Canadian parliamentary committee report comes in the wake of news, reported by Open Jaw, that the U.S. Department of Transportation (DOT) is seeking USD $25.5 million in penalties from Air Canada, saying the airline did not promptly issue refunds to customers who could not fly due to the pandemic. The airline says it will defend itself against those DOT allegations in the U.S.

Meanwhile here at home, a $6 billion federal government bailout has enabled Air Canada to start the refund process. Other airlines have also received financial assistance from Ottawa and have also used portions of that funding to refund their customers for unused tickets.

Moving forward, the Transport Committee wants to ensure any federal government funding or relief is conditional on the restoration of regional air routes across Canada, many of which were suspended during COVID, as well as “immediate” refunds to consumers whose flights were cancelled during the pandemic.

However, the committee does appear to be on board with the airline industry in its calls for “a detailed aviation restart program,” to allow the industry to “develop a clear plan for the coming months,” which echoes the same demands airlines and operators have been making of the government.

The committee also called on the government to consult with public health authorities to determine if self-quarantine requirements can be lowered to seven or 10 days from the current 14-day requirement, which the industry says is preventing travel from restarting in a meaningful way in Canada.


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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