Home / Business / Canada OKs travel vouchers for cancelled flights while U.S. and EU say passengers deserve a refund

Canada OKs travel vouchers for cancelled flights while U.S. and EU say passengers deserve a refund

While the Canadian Transportation Agency states airways solely have to supply passengers travel vouchers for cancelled flights as a result of COVID-19 pandemic, each the European Union and the U.S. have declared that — beneath their guidelines — passengers are entitled to refunds.

“Canadians should have the same rights to get their refund,” mentioned passenger Olinda Vieira of Toronto. Although Sunwing initially promised her household a refund after cancelling their March 17 journey to Cuba, the airline issued a credit score for future travel as a substitute, she mentioned.

“In my view, they’re keeping [my money] hostage.”

Vieira is one in all dozens passengers who complained to CBC News after receiving a credit score or voucher as a substitute of a refund for flights cancelled by Canadian airways through the pandemic. 

Due to a enormous decline in air travel, airways worldwide have been pressured to cancel many flights or, in some circumstances, droop operations totally.

On March 18, the European Commission clarified that airways should provide refunds for cancelled flights, as specified by its EU passenger rights laws

On April 3, the U.S. Department of Transportation (DOT) additionally ordered airways to provide refunds through the pandemic. 

“The obligation of airlines to provide refunds … does not cease when the flight disruptions are outside of the carrier’s control,” mentioned DOT in a assertion.

Canadian airways affected

DOT mentioned its guidelines additionally apply to overseas airways cancelling flights to and from the U.S. That means a Canadian airline cancelling a round-trip flight from, say, Toronto to Miami should provide passengers full refunds. 

According to EU guidelines, Canadian airways cancelling flights departing from Europe, together with the U.Ok., should provide up refunds. 

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On their web sites, main Canadian airways Air Canada, WestJet, Air Transat and Sunwing state they’re at the moment offering credit score for cancelled flights which have to be redeemed inside 24 months. 

CBC News requested all 4 airways if they are going to concern refunds for flights that fall beneath U.S. and EU guidelines.

Only Sunwing responded, saying solely its cancelled flights to Florida are affected, and that it is ready on recommendation from its U.S. attorneys on how one can proceed.

Air passenger rights professional Christian Nielsen mentioned airways are obligated to pay up, however as a result of their revenues have plummeted through the pandemic, passengers could face issue gathering refunds beneath EU and U.S. guidelines right now.

“Remember that you have this right to a refund and claim it a little later when that airline’s cash situation improves,” suggests Nielsen, chief authorized officer with AirAssist, a firm that pursues compensation claims for passengers for a payment. 

Passengers also can file a criticism with DOT or a European enforcement physique for EU passenger rights. 

CTA says it is placing a steadiness

The Canadian Transportation Agency (CTA) issued its place on March 25, stating airways solely want to supply travel vouchers for flights cancelled as a result of pandemic. 

The airline watchdog mentioned that Canada’s air passenger laws — which cowl flights to, from and inside Canada — solely require that airways guarantee passengers full their journey for flight cancellations attributable to causes outdoors of their management.

Olinda Vieira, left, her sister Ligia Mais and Mais’s son Noah on a earlier trip. The household desires a refund for their cancelled Sunwing journey to Cuba in March. (submitted by Olinda Vieira)

The company mentioned in an electronic mail to CBC News that its place “strikes a balance” between passengers’ rights and airways, that are struggling financially through the pandemic. 

But passenger Vieira mentioned she feels her rights have been violated as a result of Sunwing initially dedicated to refunding her cancelled $3,413 March trip package deal for herself and two relations. On March 16, the household additionally noticed a message Sunwing posted to Instagram — since deleted — saying that it was issuing refunds.

On the identical day, the airline introduced in a information launch that passengers whose flights had been cancelled “will be eligible for a full cash refund.” 

Even so, Vieira by no means acquired a refund. Instead, she mentioned she realized on March 30 that Sunwing was now providing solely travel credit.

“They’re going back on their word,” she mentioned. “It’s very concerning that during these times … they’re trying to keep people’s money.”

We needed to make changes

Sunwing needed to regulate its coverage resulting from “changing circumstances,” mentioned spokesperson Jacqueline Grossman in an electronic mail to CBC News. 

“We understand that some customers would have preferred a refund, but are confident that during the next two years they will be able to take the flights or vacations they had planned.”

Grossman added that Sunwing’s coverage is in step with different Canadian airways and the CTA’s assertion approving credit score for cancelled flights.

But passenger rights professional Nielsen argues that the company’s place is not an official ruling on the matter.

“It’s not legally binding on consumers,” he mentioned. “You could take it further — and we actually see a class action already.”

In late March, a proposed class-action lawsuit was filed in federal courtroom, focusing on Canada’s main airways over issuing credit for journeys cancelled as a result of pandemic. It must be licensed by a choose earlier than it might probably proceed.

The CTA declined to touch upon the proposed lawsuit and mentioned its present place “provides guidance in a situation without precedent.”

The company added that dissatisfied passengers can file a criticism with the CTA. Vieira’s household has accomplished simply that. 

“It’s very unfair,” she mentioned. 

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