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
Is the cost of refunds for US flights really that high compared to the legal fees to defend their position?
Take their slots, let them burn
Source: Canadian. Happy Canada Day!
DOT to Air Canada:
And we don’t have to let your planes fly to, or over, the United States.
Happy Canada Day!
I will never fly with Air Canada ever again… unless it’s the cheapest option available to me… like I do with literally every single flight ever.
Rather than making these kinds of “NEVER AGAIN!” declarations, I’ll just wait for law enforcement to start enforcing the law. If I actually never again flew with an airline that did something wrong, at this point I would have zero airlines left to fly with. All of the airlines are terrible in their own unique ways.
DoT is just like other US department that DOES NOT ENFORCE THE LAW!
That’s a bold strategy, let’s see if it pays off. Probably not a good idea to upset the agency that can revoke your landing and gate privileges, not to mention the absolute horrible optics of playing hardball during a worldwide pandemic. Way to burn up all your accumulated goodwill, Air Canada!
Air Canada: “We’ve got your money, and we’re keeping it.”
Ban them. All of them. What will the Canadian government do, ban all US airlines with no pretext?
Any legally-enforceable suggestions? Somehow I don’t think “Ban them. All of them.” will hold up in court. But I’m not a legal expert, lol.
Yeah, they only gave me travel credit… I need my cash refund smh.
I will not fly with AC. They cancelled my flights and would not issue full refund (I even disputed through DoT). Luckily I bought those tickets with Amex platinum, and after several weeks of investigation, Amex gave me the full refund. Got to love Amex here!
Since you got the credit from Amex, did you see if you also got the credit with AC as well?
Booked a flight with Air Transat last October for June this year. Flight was canceled May 7 but I was only offered a voucher good for 24 months; no cash refund. The hotels and train tickets I booked in Canada were all promptly refunded back in cash (even though some were booked as non-refundable). I complained to the US Department of Transportation about the lack of a cash refund and they did respond that yes, I was legally required to get a cash refund from Air Transat and no they can’t enforce or do anything about it. (Really? Why am I paying taxes to employ these people? But I digress.) What a waste of time…I called American Express yesterday and disputed the charge for a product I never received and less than 24 hours later AmEx is refunding my money. Thank you American Express! Great customer service!
I feel bad for the situation but Canada’s government should be providing assistance to its airlines to help them get through this. It is ABSURD for the airlines’ customers to be financing operations during the shut down. Airlines use cash they receive to finance ongoing operations so it’s not like they have all the money lying around in a vault until the day someone flies. I’m sure they would like to refund customers’ cash but they just don’t have it. However, that is not a customer’s issue. If the customer paid for a product and they never received it, they are due a full refund; to not do so is the very definition of theft.
The other issue with the 2 year voucher I was offered is that it was issued on Air Transat which never began service to the city I was departing from (they were suppose to begin in June) so who knows if I will ever have a flight from where I live in the next two years… AND Air Transat is in the process of being bought by Air Canada currently. Do I trust Air Canada to honor an Air Transat voucher in the future? Heck NO!