Frustration mounts over lack of choice for flight refunds
Petition argues travel credits too restrictive
OTTAWA • A growing chorus of voices is demanding Ottawa force airlines to reimburse cash-strapped travellers the cost of trips that were cancelled because of the pandemic, rather than offering a 24-month travel credit.
Just on Wednesday, support for a House of Commons petition demanding the federal government require airlines to refund trips jumped from 500 in the morning to well nearly 5,900 by late afternoon.
The petition was initiated by Marie-Ève Dumont of Option Consommateurs, a consumer rights advocacy group in Montreal, and sponsored by Bloc Québécois MP Xavier Barsalou-Duval.
They say thousands of Canadians have had trips cancelled because of border closures put in place to limit the spread of COVID-19, and they are now being forced to take credits instead of refunds by airlines and tour operators.
“These travel credits come with restrictive terms and conditions, including that they must be used within 24 months, that they are non-transferable or that they do not provide any price guarantee,” the petition reads.
“Many consumers will not be able to use these credits within the time limits imposed by air carriers due to financial or health problems or the fact that the risks related to COVID-19 have not yet been eliminated,” it continues.
Border shutdowns around the world over the past two months have hammered Canadian airlines’ bottom lines. In a memo last Friday, Air Canada told employees it planned on slashing at least half its workforce after reducing its flight schedule by 95 per cent.
But a recent report by the Journal de Montréal says that Air Canada is sitting on $2.6 billion in “prepaid passenger income” as of March 31.
In an interview, Barsalou-Duval said that Canadian airline customers’ money has been “confiscated” by companies who refuse to issue refunds in a time when millions of workers are unemployed because of the COVID-19 pandemic.
“I don’t think that it’s up to the average citizen to put up $5,000, $10,000 or even $15,000 to keep a company afloat when they’d like to be able to pay their mortgage or buy groceries after possibly having lost their job. It’s not a simple situation for many people,” the Bloc’s transportation critic said. According to the Canadian Transportation Agency, the use of vouchers to compensate cancelled travel “could be a reasonable approach in the extraordinary circumstances resulting from the COVID-19 pandemic.”
But that approach doesn’t seem to be resonating with consumers.
Option Consommateurs lawyer Élise Thériault says her organization has been flooded with complaints from Quebecers furious about not being reimbursed the full value of their travel during the pandemic.
While the non-profit usually receives about 20 calls from consumers every day, that average has jumped to roughly 100 calls over the past two weeks, she said. Nearly every single one is regarding travel refund issues.
The Canadian Transportation Agency says it’s received nearly 5,100 complaints between March 11 and May 19. It can’t say how many of those were specifically about refunds, but most flights in Canada were grounded during that time so complaints about issues such as punctuality would presumably be down.
Option Consommateurs sent a letter to the transportation agency and Transport Minister Marc Garneau’s office early last week saying that it is “unacceptable” that cancelled flights weren’t fully reimbursed and asking the minister to intervene.
She has yet to receive a response.
“We think the current situation was illegal, considering that Quebec’s civil code says airlines must reimburse in cases like this. We are not against travel vouchers, we just think that a refund must be available like in Europe on in the United States,” Thériault explained in an interview.
Garneau’s office did not respond to questions sent by email on Wednesday.
But on Tuesday, the Bloc Québécois asked Garneau during a session of virtual Parliament if he would ensure that airlines reimbursed clients who requested their money back.
“I understand the frustration of people who would have preferred a refund right now. However, the industry is going through very difficult times,” Garneau responded.
He also reminded MPs that Ottawa has already helped airlines, notably through the Canadian Emergency Wage Subsidy program.
“Several airlines have used it, including Air Canada. There is also the program that is there to make loans to large companies. This program has just been launched and we will see how it progresses in the days to come,” Garneau said.