Minister of Transport Marc Garneau responds to a question during Question Period in the House of Commons in Ottawa, Tuesday, Nov. 3, 2020. THE CANADIAN PRESS/Adrian Wyld

Minister of Transport Marc Garneau responds to a question during Question Period in the House of Commons in Ottawa, Tuesday, Nov. 3, 2020. THE CANADIAN PRESS/Adrian Wyld

Airline watchdog ordered to develop new rules for flight cancellation refunds

At least 3.9 million passengers have been affected by cancelled flights due to COVID-19

The federal government is directing the Canadian Transportation Agency to strengthen rules that require airlines to refund passengers for cancelled flights.

In a statement Monday, Federal Transport Minister Marc Garneau said the pandemic has highlighted a gap in Canada’s protections for airline passengers, which weren’t designed to cover such lengthy delays.

“In the event of a future situation that causes similar large-scale flight cancellations, this gap needs to be closed so that travellers are treated fairly,” Garneau said.

Existing CTA rules don’t require airlines to offer refunds if they can get passengers to the destination within a reasonable time period — for example, offering a next-day flight if a snowstorm grounds planes. But passenger advocates say that doesn’t work for the indefinite delays ticket-holders currently face and are lobbying the government to mandate that airlines issue cash refunds, rather than travel vouchers, for flights that were cancelled due to COVID-19.

At least 3.9 million passengers have been affected by cancelled flights due to COVID-19, according to Gabor Lukacs, the founder of Air Passenger Rights, one of the groups advocating for airlines to issue refunds.

Scott Streiner, chair and chief executive officer of the CTA, said the agency’s goal is to have the new regulations in place by next summer.

One of the biggest details to be worked out between now and then include how long customers have to wait after a cancelled flight before they are entitled to a refund, Streiner said.

The agency is launching a public consultation between now and Jan. 28 to help determine the answer to that and other questions.

“This is a major priority for us,” Streiner said.

The new rules would apply to future cancellations only and will not be retroactive.

Garneau said the updated regulations should be “fair and reasonable” to passengers and should not impose an undue burden on airlines “that could lead to their insolvency.”

Airline passenger refunds have emerged as a point of contention between airlines and the government, which are currently negotiating the terms of an aid package for the struggling travel sector.

The federal government has said that any aid to the sector would be contingent on giving passengers full refunds for cancelled flights.

Airlines maintain that they are not legally required to issue refunds and have criticized Ottawa for its delay in issuing more assistance to the sector.

Lukacs says he warned the government in an in-person meeting and written communications in 2019 that Canada’s protections for airline passengers were weak and could be misinterpreted by airlines to avoid issuing refunds.

Air Passenger Rights’ communications with both Transport Canada and CTA cast doubt on the government’s claim that it discovered this issue as a result of the pandemic, Lukacs said.

In response to a question about whether the government was aware of regulation gaps prior to the pandemic, Transport Canada spokeswoman Allison St-Jean didn’t answer directly. “We are encouraged by recent efforts by air carriers to provide options for cancelled flights and refunds in some cases,” she said.

The CTA said it has only now received legal authority to develop regulations requiring airlines to issue refunds if a flight is cancelled for reasons beyond the airline’s control and passengers can’t complete their itinerary within a reasonable timeframe.

Stephanie Kusie, a Conservative MP and the shadow minister for transport, said in a tweet Monday afternoon that the government’s proposal fails to address the problem of outstanding passenger refunds.

Similarly, Lukacs said the new regulations wouldn’t be of any help to those passengers who have already had their flights cancelled.

“This would provide no relief to passengers who have been shortchanged,” Lukacs said. “Regardless of what they do with the regulations, the law is already that passengers are entitled to a refund.”

Jon Victor, The Canadian Press


Like us on Facebook and follow us on Twitter.

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

AirlinesCoronavirus

Just Posted

FILE – Perry Bellegarde, National Chief of the Assembly of First Nations, takes part in an event on Parliament Hill in Ottawa on Tuesday, July 7, 2020. THE CANADIAN PRESS/Sean Kilpatrick
Indigenous Peoples Day must be a ‘call to action’, says Assembly of First Nations chief

Discovery of children at Kamloops residential school site must lead to change, Perry Bellegarde says

A tent housing a mobile vaccination clinic. (Interior Health/Contributed)
Over 5K jabbed at Interior Health mobile COVID-19 vaccine clinics

The clinics have made stops in more than 40 communities since launching last week

Provincial Health Officer Dr. Bonnie Henry talks about B.C.’s plan to restart the province during a press conference at Legislature in Victoria, Tuesday, May 25, 2021. THE CANADIAN PRESS/Chad Hipolito
Interior Health COVID-19 cases falling slower than the rest of B.C.

More than a third of provincial cases announced Thursday came from the Interior

A tent housing a mobile vaccination clinic. (Interior Health/Contributed)
Second dose vaccinations accelerating throughout region: Interior Health

To date, more than 675,000 doses have been administered throughout the region

Okanagan Lake (File photo)
Thompson-Okanagan ready to welcome back tourists

The Thompson-Okanagan Tourism Association expects this summer to be a busy one

The border crossing into the United States is seen during the COVID-19 pandemic in Lacolle, Que. on February 12, 2021. THE CANADIAN PRESS/Paul Chiasson
VIDEO: Border quarantine to soon lift for fully vaccinated Canadians

Eligible travellers must still take multiple COVID-19 tests

Skeena MLA Ellis Ross. (Photo by Peter Versteege)
BC Liberal leadership candidate condemns ‘senseless violence’ of Okanagan church fires

Skeena MLA Ellis Ross says reconciliation isn’t about revenge for past tragedies

A coroner’s inquest will be taking place at the Capitol Theatre in Port Alberni for the next week. (ELENA RARDON / ALBERNI VALLEY NEWS)
Teen B.C. mom who died following police custody recalled as ‘friend to many’

Police sent Jocelyn George to hospital after intoxication had gone ‘beyond the realm’ of normal detox

FILE - In this Nov. 29, 2020, file photo, Las Vegas Raiders defensive end Carl Nassib leaves the field after an NFL football game against the Atlanta Falcons in Atlanta. Nassib on Monday, June 21, 2021, became the first active NFL player to come out as gay. Nassib announced the news on Instagram, saying he was not doing it for the attention but because “I just think that representation and visibility are so important.” (AP Photo/John Bazemore, File)
Nassib becomes first active NFL player to come out as gay

More than a dozen NFL players have come out as gay after their careers were over

Penticton Indian Band Chief Greg Gabriel speaks to the Sacred Hearts Catholic Church burning down early Monday morning, June 21, 2021. (Monique Tamminga Western News)
Penticton band chief condemns suspicious burning of 2 Catholic churches

Both Catholic church fires are deemed suspicious, says RCMP

COVID-19 daily cases reported to B.C. public health, seven-day moving average to June 17, 2021. (B.C. Centre for Disease Control)
B.C.’s COVID-19 infections drop to 90 on Sunday, 45 Monday

Pandemic spread dwindles as 77% of adults receive vaccine

By protesting uninvited in First Nations’ territories, conservationists are acting in a neocolonial or paternalistic manner, says Huu-ay-aht Chief Robert Dennis. Photo by Heather Thomson
A closer look: do Vancouver Island First Nations support the war in the woods?

First Nations/environmentalist old growth alliance uneasy, if it exists at all

A blood drive in support of 1-year-old Rielynn Gormley of Agassiz is scheduled for Monday, June 28 at Tzeachten First Nation Community Hall in Chilliwack. Rielynn lives with type 3 von Willebrand disease, which makes it difficult for her to stop bleeding. (Screenshot/Canadian Blood Services)
Upcoming blood drive in honour of Fraser Valley toddler with rare blood condition

The Gormley family has organized a blood drive in Chilliwack on June 28

One Reconciliation Pole and two Welcome Figures were unveiled during a ceremony in honour of truth and reconciliation on National Peoples Indigenous Day at the Vancouver School District in Vancouver, B.C., on Friday, June 21, 2019. THE CANADIAN PRESS/Chad Hipolito
Horgan marks Indigenous Peoples Day by urging recognition of systemic racism

National Indigenous Peoples Day has been marked in Canada since 1996

Most Read