Regulator opens door to chance of more refunds on cancelled flights

The Canadian Transportation Agency is backing away from an earlier statement on flight vouchers, saying its initial position on airlines’ right to issue travel credits instead of a refund for cancelled trips is “not a binding decision.”

The latest statement could open the door to more refunds from carriers that have cited the agency’s stance in denying passenger requests to get back cash for services not rendered.

Last month, the regulator said the passenger rights charter does not oblige airlines to refund customers for flights cancelled due to the COVID-19 pandemic.

A post Tuesday from the agency reiterates that position, but also stresses customers’ right to demand a refund based on the “tariff” — the contract between passenger and carrier.

“The statement on vouchers suggests what could be an appropriate approach in extraordinary circumstances, but doesn’t affect airlines’ obligations or passengers’ rights,” the agency said in the FAQ section of its website.

“Some airline tariffs might not provide for a refund and others might include force majeure exceptions to refund provisions.”

The CTA further notes that travellers who are denied a refund can file a complaint — a word left out of the regulator’s original statement on vouchers.

The clarification comes less than one week after the Air Passenger Rights advocacy group launched a legal action in the Federal Court of Appeal seeking to have the voucher statement removed from CTA’s website.