Scott Streiner, Chairman & CEO of the Canadian Transportation Agency (CTA) and Marc Garneau, Minister of Transport, launch the final provisions of the Air Passenger Protection Regulations during a press conference at the Ottawa International Airport in Ottawa on Friday, Dec. 13, 2019. Steiner says Canada may need to rethink its passenger protection rules after hundreds of thousands flight cancellations prompted by the COVID-19 pandemic left travellers out of pocket. THE CANADIAN PRESS/Sean Kilpatrick

Watchdog says flight refund rules may need reworking to address possible ‘gaps’

Most Canadian airlines have offered credits for a cancelled flight that are valid for at least two years

Passenger protection rules may need to be revised after hundreds of thousands of flight cancellations prompted by the COVID-19 pandemic left travellers out of pocket, the head of Canada’s transportation regulator said Wednesday.

Scott Streiner, who heads the Canadian Transportation Agency (CTA), said officials should ask “the obvious question” of why airlines do not have to refund passengers when flights are cancelled for reasons beyond the carrier’s control — such as a global virus outbreak.

“The situation that we’ve encountered over the past several months was unprecedented, it was completely unanticipated,” Streiner said in a phone interview.

“And as a result of it we may need to collectively take a look at the framework that we’ve put in place for air passenger protection and ask ourselves whether there are lessons learned and whether there are any gaps that we need to address.”

READ MORE: Travel will have to wait, despite calls from Canada’s business leaders, Trudeau says

A new passenger rights charter, which fully came into effect on Dec. 15, requires airlines to ensure that customers can complete their itineraries, but does not demand reimbursement.

“I think the question we now have to ask is, what happens if that’s not possible?” Streiner said, referring to completion of itineraries.

Most Canadian airlines have offered credits for a cancelled flight that are valid for at least two years and have kept billions in advance ticket sales amid a collapse of the travel industry.

Advocates say passengers have the right to a refund for services that were never rendered, with some in urgent need of cash amid a recession that pushed the unemployment rate to nearly 14 per cent, the highest rate in at least 45 years.

“The law has always been clear that passengers are owed a refund,” said passenger rights advocate Gabor Lukacs, citing four CTA rulings. “The deficiency is in the failure to codify this obligation in the new regulations.”

The absence of a refund rule forms part of a larger problem of enforcement in the Air Passenger Protection Regulations, he said.

A February 2019 report by Air Passenger Rights, an advocacy group run by Lukacs, found that criteria for monetary compensation are extremely tough to meet, often requiring passengers to present evidence that is in the hands of the airline.

“It’s heaven for lawyers and class action litigation,” Lukacs said Wednesday.

Since February, passengers have filed a handful of proposed class-action lawsuits claiming airlines have unfairly denied customer refunds. A trio of petitions — two presented in the House of Commons last month — that garnered more than 109,000 signatures have called for customer reimbursement of flights cancelled due to the coronavirus.

The CTA has received a “tsunami of complaints” about airlines in recent months, with more than 93 per cent filed since mid-December, though many came in before the pandemic struck, Streiner said.

READ MORE: Airlines face MPs’ frustration over health concerns, lack of refunds

The watchdog will receive additional funding and hire 34 new staff to its current team of 50 dealing with air travel complaints, he said. The agency has also streamlined its complaints process, introducing a more user-friendly complaint form online along with increased automation.

“We’re not going to be able to get through 14,000, 15,000 complaints in two months, but we are going to throw ourselves into it and we are going to dig through them as quickly as we can,” Streiner said.

The CTA had suspended adjudications on air travel complaints to allow airlines to concentrate their resources on a pandemic response, but hearings will resume officially in early July, he confirmed.

Streiner said customers are entitled to refunds where stipulated in the contract of carriage or “tariff” but identified “ambiguity” in the contracts as an issue.

Multiple airlines have cited statements from the regulator in March and April to justify offers of credit rather than cash back.

“A lot of this has been following guidance of the CTA, where they had come down and said that it was acceptable to issue a travel credit during the time of pandemic,” Swoop president Charles Duncan said in an interview.

Christopher Reynolds, The Canadian Press


Like us on Facebook and follow us on Twitter.

Want to support local journalism during the pandemic? Make a donation here.

Air TravelCoronavirus

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Surrey students paint mural, paying homage to First Nations, at SkyTrain station

Artwork to showcase ‘positivity and racial inclusivity in the city’

PHOTOS: Residents showcased as ‘companion’ sculpture unveiled

Amica White Rock welcomes bronze guardian, celebrates resident talent

More than 50,000 checks: Surrey COVID-19 compliance, enforcement team’s role has ‘evolved’

Joint bylaw, RCMP team created to help with coronavirus education, support

Homemade explosives detonated in South Surrey

Police asking public for help identifying those responsible

White Rock highrise on hold after workers exhibit ‘severe’ overexposure symptoms

WorkSafeBC issued stop-work order at 1588 Johnston Rd. site on July 24

‘Don’t kill my mom’: Ryan Reynolds calls on young British Columbians to be COVID-smart

‘Deadpool’ celebrity responds to premier’s call for social influence support

Captain Horvat’s OT marker lifts Canucks to 4-3 win over Blues

Vancouver takes 2-0 lead in best-of-7 NHL playoff series with St. Louis

PHOTOS/VIDEO: Wings and Wheels set for weekend lift-off in Abbotsford

Fundraiser to raise money for Crystal Gala Foundation and the fight against breast cancer

Undercover video shows alleged animal abuse at Fraser Valley egg farm

One employee wearing logo of Chilliwack chicken-catching company already facing abuse charges

Widow of slain Red Deer doctor thanks community for support ahead of vigil

Fellow doctors, members of the public will gather for a physically-distanced vigil in central Alberta

Protesters showcase massive old yellow cedar as Port Renfrew area forest blockade continues

9.5-foot-wide yellow cedar measured by Ancient Forest Alliance campaigners in Fairy Creek watershed

Taking dog feces and a jackhammer to neighbourhood dispute costs B.C. man $16,000

‘Pellegrin’s actions were motivated by malice …a vindictive, pointless, dangerous and unlawful act’

Racist stickers at Keremeos pub leaves group uneasy and angry

The ‘OK’ hand gesture is a known hate-symbol

Most Read