New rules for refunds to air passengers

The Canadian Transportation Agency (CTA) said Wednesday that the new regulations, which will take effect September 8, will require carriers to either refund passengers or rebook them, at the traveler’s option, if a flight is canceled or significantly delayed.

Until now, the Air Passenger Protection Regulations only required reimbursements for flight disruptions that were attributable to the airline, which excluded situations ranging from storms to unforeseen mechanical problems.

These regulations will fill the gap in Canada’s air passenger protection regime highlighted by the COVID-19 pandemic and ensure that even in the event of cancellations and extended delays due to circumstances beyond the control of the airline, passengers will be protected if the airline cannot ensure that they complete the planned itinerary within a reasonable timesaid the president of the agency, France Pégeot, in a press release.

Thousands of Canadians are facing a slew of long flight delays and cancellations these days, as airlines and security and customs agencies struggle to manage a staff shortage amid the recent wave of travel, a problem that is expected to continue for much of the next two months. The new rules won’t protect summer travellers, however, as they don’t come into effect until the fall.

The regulations will require airlines to offer a rebooking or refund within 30 days if they cannot provide a rebooking within 48 hours of a flight cancellation or long overdue.

Any unused portion of the ticket must be refunded, including any additional services purchased but not usedsaid theOTC. And the method of refund must be the same as the original payment. This means that a credit card purchase could not be refunded in cash – or by travel voucher, as most Canadian airlines did for almost a year from March 2020, when the pandemic was forcing the cancellation of hundreds of thousands of flights.

Airlines challenge settlement

Despite their tightening, the new rules don’t go far enough for some. Gabor Lukacs, chairman of the Travelers Rights Group, called the new framework aimposture.

Requiring a refund or rebooking only if the airline can’t guarantee another seat on a plane that leaves within two days of the original departure time doesn’t meet travellers’ needs, according to Lukacs.

” Whether you are traveling for a weekend, vacation or business, traveling 48 hours later defeats the purpose of your trip. “

Canada is the only western country where airlines can keep passengers’ money for canceled flights. The United States, the European Union, Israel or even Turkey have clear rules that when a flight is canceled for any reason, the passenger must be reimbursed – even if the airline can offer an alternative a few hours more late.

The airlines, for their part, argue that the Air Passenger Protection Regulations, which came into force in 2019, already go too far.

Canadian carriers asked a Federal Court of Appeal panel in April to strike down rules that strengthen compensation for passengers who suffer from delayed flights and damaged baggage.

Air Canada and Porter Airlines, along with 16 other callers, including the International Air Transport Association — IATA has about 290 member airlines — claimed the passenger bill of rights violated global standards and should be struck down for international flights.

Launched in 2019, the lawsuit argues that the scheme exceeds the powers of the Canadian Transportation Agency. It would also contravene the Montreal Convention, a multilateral treaty, by imposing more onerous compensation requirements in the event of flight cancellations or lost luggage.

Ottawa denies it

Ottawa maintains that there is no conflict between the passenger protection rules and the Montreal Convention.

Under federal rules put in place three years ago, passengers must be compensated up to $2,400 if they were denied boarding because a trip was overbooked, and receive up to $2,100 for lost or damaged baggage. Delays and other payments for canceled flights warrant compensation of up to $1,000.

The problem came to the fore after a 2017 incident in which two Air Transat planes bound for Montreal were diverted to Ottawa due to poor weather conditions and were held on the tarmac. until 6 a.m., causing some passengers to call 911 for rescue.

The issue took on new importance for thousands of Canadians beginning in March 2020, as the COVID-19 pandemic, travel restrictions and border closures led to mass flight cancellations and grounded fleets. airlines.