Flight Pass Class Action Lawsuit Proceeds Against Air Canada

The Quebec Court of Appeal has authorized an Air Canada class action lawsuit that challenges the airline’s policy of imposing an expiration date on the Flight Passes it sells.

The appeals court has authorized the Air Canada class action lawsuit to proceed on behalf of all Canadian consumers who, since Aug. 16, 2013, purchased, received and/or acquired at least one Air Canada consumer Flight Pass with a specified number of flight credits.

What Is the Air Canada Flight Pass Program?

Air Canada offers prepaid flight passes that include credits corresponding to one-way flights. These credits may correspond to a fixed number or unlimited number of credits for flights that can be used in a specific geographic area during a specified period of time. The Air Canada class action lawsuit challenges only the Flight Pass packages that include a fixed number of credits.

Consumers can choose to purchase an Air Canada Flight Pass that only they can use, or they can choose certain travel companions who can also use the pass. The travel companions must be specified at the time of purchase, but it is possible to change the name of the travel companion for an additional cost.

Consumer Flight Pass Class Action Lawsuit Allegations

Plaintiff Joseph Benamor says he purchased an Air Canada Sun Pass – Florida Flex. This Air Canada Flight Pass package allegedly consisted of eight flight credits that could be used to travel between Montreal, Ottawa or Toronto and certain cities in Florida between March 6, 2015 and March 6, 2016.

Benamor reportedly did not use all of the flight credits during the specified timeframe and had to pay additional fees to use the remaining credits. He also says he paid additional fees to allow someone other than his designated travel companion to use the credits.

According to the Air Canada consumer flight pass class action lawsuit, the terms of the Air Canada Flight Passes violate portions of the Consumer Protection Act and the Gift Card Regulation of Alberta by imposing an expiration date and by requiring the payment of additional fees to allow another passenger to use a flight credit.

Appeals Court Overturns Superior Court Decision

In allowing the Air Canada flight pass class action lawsuit to move forward, the appeals court reverses a Jan. 30, 2019 judgment by the Superior Court.

The Superior Court judge rejected the plaintiff’s request to authorize the Air Canada class action lawsuit after determining that the Air Canada Flight Passes do not qualify as a prepaid gift card under the applicable law. The judge reportedly concluded that the purchase of flights is made at the time the consumer acquires the Flight Pass, and that the Flight Pass does not hold monetary value that allows the consumer to acquire a good or service.

Benamor subsequently appealed the decision, arguing that the Superior Court judge erred when he determined that the Flight Pass must have a monetary value to be considered a prepaid card. Air Canada argued that the judge correctly concluded that the Flight Passes do not constitute prepaid cards under the applicable law, and that this determination was appropriate at the authorization stage because it was simply a statutory interpretation.

In its decision to overturn the Superior Court’s ruling, the appeals court found that the Consumer Protection Act definition of a prepaid card does not clearly require the card to have a monetary value and that the judge erred by interpreting it as such.

Benamor initially sought to represent a worldwide Class of consumers who acquired Air Canada Flight Passes with a fixed number of credits, but the appeals court majority determined that the Class should be limited to Canadian consumers.

The Air Canada Flight Pass class action lawsuit will now go back to the Superior Court.

Airline Travel Credits Challenged by Class Action Lawsuits

Air Canada is no stranger to litigation over its consumer flight passes. Earlier this year, the airline was hit with a class action lawsuit accusing it of wrongfully prioritizing active employees over retirees and treating its flight pass perk as a privilege instead of an obligation.

WestJet is also facing a class action lawsuit challenging its policy of issuing travel credits with a one year expiration date.

Have you purchased Air Canada Flight Passes that subsequently expired? Did you pay additional fees to use the flight credits? Tell us your story in the comments section below.

The Air Canada Flight Pass Class Action Lawsuit is Joseph Benamor v. Air Canada, Case No. 500-09-028098-192, in the Quebec Court of Appeal, Canada. 

Read More Lawsuit & Settlement News:

• CPA Canada Class Action Lawsuit Claims Hundreds of Thousands of Customers’ Data Exposed in Breach
• WestJet Class Action Lawsuit Takes Flight Over Travel Credits
• Canadian Bank and Credit Union Overdraft & NSF Fee Lawsuit
• Pandemic Business Interruption Insurance Canada Potential Lawsuit