Pressure is mounting on the federal government to make it mandatory for Canadian airlines to refund passengers for flights cancelled due to pandemic travel restrictions if those companies are receiving aid from taxpayers.
Pressure is mounting on the federal government to make it mandatory for Canadian airlines to refund passengers for flights cancelled due to pandemic travel restrictions if those companies are receiving aid from taxpayers.
The minister of transport’s office is being hit with a growing number of complaints from MPs, consumer groups and travellers arguing that it’s unfair for Canadian airlines to issue travel credits rather than full refunds.
Shona Chapman said COVID-19 forced her out of work. She said she’s had to temporarily close her salon in Barrie, Ont. after 25 years in business, and has been deferring car payments to get by. A travel credit from WestJet for her Mexico vacation won’t pay her mounting bills, she said.
“It’s very unfair,” said Chapman, who is seeking a $1,400 refund. “It makes you angry … It’s like we’re giving them a mass interest-free loan.”
Hard-hit airlines are burning through cash. Most of Canada’s airline fleet is sitting idle due to a pandemic that has led to widespread travel restrictions and a dramatic drop in demand. Major airlines have tapped into Canada’s wage subsidy program to hire back workers; they’re also considering accessing a new loan program for big companies.
CTA says pandemic doesn’t erase travellers’ rights
Airlines say the Canadian Transportation Agency gave them the green light to compensate grounded travellers with vouchers by issuing a statement that cited “these extraordinary circumstances, when flights are cancelled for reasons outside airlines’ control.”
The CTA later clarified its position and said the pandemic doesn’t negate passengers’ rights. People who believe they are entitled to a refund can still request one from the airline; if they’re turned down, they can file a complaint with the CTA. The agency told CBC News it has received more than 5,100 air travel complaints since mid-March.
Yesterday, Prime Minister Justin Trudeau said the government is working with airlines and concerned Canadians on the issue.
“Getting the balance right will be delicate, but it’s something we’re working on,” he said.
Watch: Prime Minister Justin Trudeau on air travel refunds
Prime Minister Justin Trudeau spoke with reporters on Thursday. 2:03
That “balance” amounts to finding a way to compensate customers while protecting airlines from bankruptcy.
Minister of Transport Marc Garneau said that while he understands Canadians are frustrated, airlines have lost 95 per cent of their revenue in Canada and still have fixed costs to pay.
“They’re in a world of hurt at the moment,” Garneau told Chris Hall, host of CBC Radio’s The House, on May 15. “So we have to take that into consideration, given the fact we want the industry to survive and rebuild and resume operations.”
Garneau’s office adjusted that response yesterday to echo the prime minister’s call for a balanced approach.
Air Canada offers ‘options’
Today, Air Canada announced