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Traveller in airport regarding the new refund regulations to protect passengers

Citing continued fallout from the ongoing coronavirus pandemic, the federal government reportedly announced that it will be developing new flight refund regulations designed to protect passengers, not the airlines.

CBC News reports that Transportation Minister Marc Garneau pivoted the agency’s messaging recently, focusing on passenger rights, rather than preserving the airline industry. According to a recent statement by the agency, airlines will face new regulations in situations where flights are cancelled for reasons outside of the airline’s control and a passenger’s itinerary cannot be completed “within a reasonable time.”

“The ongoing COVID-19 pandemic has highlighted a gap in the air passenger protection framework, which did not foresee the potential for large-scale and lengthy flight cancellations and groundings of air carrier fleets not only in Canada but globally,” said Garneau in a recent statement.

Passengers Face Cancellations Amid COVID, But No Flight Refunds

As the reality of COVID-19 hit in the spring of 2020, air travel declined precipitously. As airlines cancelled thousands of flights to help stop the spread of the virus, they reportedly left many Canadians with much less than they expected.

Indeed, many reported that airlines, including WestJet and Air Canada, refused to provide refunds. Instead, passengers said they were offered travel vouchers. In some cases, the vouchers included an expiration date and passengers say that, as the coronavirus pandemic continues, they may be left with hundreds or even thousands of dollars in worthless travel credits.

Airlines Hit With Flight Refund Class Action Lawsuits

A massive class action lawsuit was filed against five major airlines by passengers demanding cash refunds for their flights cancelled due to the coronavirus. The complaint contends that passengers who were unable to travel due to no fault of their own during the initial spread of COVID-19 are due refunds under the terms of the tickets they booked.

Additionally, the class action lawsuit Canada contends that, in the aftermath of coronavirus cancellations and continued travel restrictions, airlines changed their policies to further deny passengers refunds.

In November, a judge concluded that the class action lawsuit was outside of the Federal Court’s jurisdiction, sending the claims to provincial court.

Canadian Government Initially Worried About Airline Finances

The announcement of new flight refund regulations designed to protect passengers is a change from how the federal government initially responded to the effects coronavirus had on the airline industry. According to CBC News, Transport Minister Garneau told Canadians that forcing airlines to refund COVID cancelled flights could tank some companies.

Angry passenger regarding the new refund regulations Indeed, the Transportation Agency reportedly posted a “Statement on Vouchers” that noted flight refunds may not be provided to passengers whose flights are cancelled in certain situations. The agency has reportedly received blowback concerning this statement by passengers and advocacy organizations alike who say that it violates Air Passenger Protection Regulations, making consumers believe that they can only accept a travel voucher when they may be due a refund.

Recently, the Supreme Court of Canada refused to hear a case brought by the advocacy group, Air Passenger Rights, demanding that the Transportation Agency remove its “Statement on Vouchers.” According to the Times Colonist, the advocacy group’s broader claims in their lawsuit concerning passenger refunds will proceed, however.

Canada Transportation Agency Changes Its Tune on Flight Refunds 

In November, the Transport Minister reportedly changed his stance on flight cancellation refunds, demanding that airlines commit to passenger refunds before receiving federal aid.

Now, Garneau has reportedly directed the Transportation Agency to implement new regulations that would force airlines to refund passengers in the event of cancelled flights.

“This updated regulation should be made in a manner that is fair and reasonable to passengers, and to the extent possible not impose an undue financial burden on air carriers that could lead to their insolvency,” said Garneau in his recent statement.

CBC News reports that the proposed new regulations may not help those already seeking refunds for trips cancelled due to coronavirus.

“The sector still requires a plan that puts airlines in a position where they can provide refunds to passengers who deserve them,” a conservative MP reportedly pointed out on Twitter.

CBC News reports that airlines have received $1.4 billion from the federal government to shore up employee wages. Despite this assistance, Canada’s airlines report devastating losses as the coronavirus pandemic drags on.

Reportedly, Air Canada was forced to cut its workforce in half in June of this year and suspend dozens of domestic regional routes. The airline reported an 88% drop in passenger traffic since the beginning of the pandemic, along with an 86% drop in revenue.

Xavier Barsalou-Duval, Bloc Québécois Transport Critic, reportedly said that the law is clear about companies reimbursing customers if a service is not provided adding that, “the minister must be firm and demand that companies respect consumer rights.”

What do you think about the proposed flight refund regulations? Will it change the way you travel? Are you still waiting for an airline to provide you a refund for a cancelled trip? Tell us about it in the comment section below!

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5 thoughts onNew Flight Refund Regulations Developed to Protect Passengers

  1. Robin & Carol Jones says:

    My new wife and I (77 & 78 years old respectively) booked a honeymoon trip scheduled to fly with Sunwing to Jamaica for March 30,2020. This particular booking through Vision Travel was specifically to spend time with Johnny Reid the musician in Negril. The package was called Johnny in Paradise.
    Even though we purchased travel cancellation insurance, we have received nothing in compensation either from the insurance company (Manulife) or Vision Travel, Sunwing etc. We are owed almost $10,000 in total. Our federal government has done nothing to help us.

  2. Colleen Zimmer says:

    Our Family (of 4) booked a vacation package March 5/20 (flight & hotel) with Sunwing to Los Cabo’s to depart April 4-18/20. Due to COVID restrictions on travel, the flight had to be cancelled. We contacted Sunwing for a refund, as we know that when travel is possible again a trip likely won’t suit our needs or health/age!
    – our trip cost is $5130. They denied a refund and offered credit voucher. We reached out again as we needed the money back ( COVID is expensive!) and we offered for Sunwing to even keep $1000 and to refund us back the remaining 4130 as a reasonable offer and they refused – more than fair as they could keep some money for expenses. Completely unfair

  3. MICHAEL WHALEN says:

    May ’20, 66 yr old couple, both with pre-existing health issues, chose LIFE instead of travel to New York City, prior to travel agent deadline announced. Tickets booked months in advance.
    Air Canada refused to hear, Travel Agent ignored us.
    I said we’d accept vouchers but still ‘NO’,
    This is unfair.

  4. Pam Masse says:

    West jet will not reimburse me my vacation package to Cuba because it is a package deal and they only reimburse flights. My flight left to go to Cuba but we were told not to fly due to covid. This was March 17 th. How do I get my money back. I spent $4300.00.

    1. Cath Leblanc says:

      They haven’t reimbursed me either. My trip to Mexico was supposed to leave March 31st 2020

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