The U.S. Department of Transport has issued two enforcement notices (1, 2) reminding airlines that they are required to provide cash refunds for cancelled flights and that they must do so in a timely manner. Air Canada is fighting this and saying that they don’t have to provide refunds. Air Canada’s full reasoning as to why can be found here, part of it can be viewed below:
Importantly, both the Enforcement Notice and the Department’s COVID-19 Refund FAQS constitute agency guidance documents, as opposed to properly issued regulations under the Administrative Procedures Act. As mere guidance, they cannot overrule or supersede the
Department’s well-established regulatory framework, as instituting a new regulation33 requires public notice and comment.34 Indeed, the Department’s COVID-19 Refund FAQS document acknowledges that it “does not have the force and effect of law and is not meant to bind the regulated entities in any way.”
For more back and forth I’d recommend reading the well researched and written Paxex Aero article. I’m not a legal expert, but I think the time for kindness has ended. The DoT has given airlines two warnings that these refunds must be provided and Air Canada is refusing to provide them. Airlines are struggling, but so are everyday consumers. If DoT has the power to compel airlines to provide refunds then it’s time to start enforcing that power.
Hat tip to Paxex Aero
