U.S. DoT Seeks $25.5 Million Civil Penalty From Air Canada Over COVID-19 Refunds

U.S. Department of Transportation’s Office of Aviation Consumer Protection has announced that it has filed a formal complaint with Air Canada due to the carrier failing to provide timely refunds for consumers flying to/from the United States that the carrier canceled or significantly changed. It is seeking a civil penalty of $25,550,000.

Air Canada only began offering full cash refunds for these flights in April 2021, covering flights from February 2020. The DoT issued airlines two enforcement notices (1, 2) and Air Canada then stated they didn’t need to provide refunds. At the time I stated it was disappointing that the DoT hadn’t followed up on the enforcement notices so it’s good to see this. A civil penalty of $25.5 seems laughably small given the amount of refunds involved.

 

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Chuck
Chuck (@guest_1207590)
June 16, 2021 11:42

Want to fly into the US? Play by US rules. Don’t want to play by US rules, don’t fly into US. Why they were/are still allowed into US airspace considering they directly told the DOT to pound salt doesn’t make sense.

Kim Jong Un
Kim Jong Un (@guest_1207393)
June 16, 2021 07:09

Delta was the same. They canceled my flight without even telling me and they kept the money “for my convenience”. Had to do a chargeback from the credit card.

Frank
Frank (@guest_1207159)
June 15, 2021 22:16

What is this “seeking” BS? Ban them from flying until they pay all the refunds and the fine. Joke penalties = joke results

Joe
Joe (@guest_1207069)
June 15, 2021 20:20

Airasia did the same as well. Bought the tix with capital one and they sided with them. 2 trash companies

foobar
foobar (@guest_1207030)
June 15, 2021 19:11

A lot of airlines dragged their feet with refunds, but reading the post and the comments, I feel that I got off easy with my experience trying to get refunds from IcelandAir. They also dragged their feet but at least I got my refund within 2 months (and after only 1 DOT complaint).

Angela
Angela (@guest_1207025)
June 15, 2021 18:59

I hope they issue fines to Avianca as well. I made a formal complaint from a cancelled flight from them during March of 2020 (airline cancelled it, not me), and they did not issue me a refund for over 6 months and only after I filed a formal DoT complaint.

nits
nits (@guest_1207017)
June 15, 2021 18:46

DoT should look into Air India. they held refunds for several months, charged cancellation fees clearly violating DoT guidelines, offered credits expiring in ridiculously short time (I was offered a credit expiring in sept’2020 for cancelling a flight initially planned for May’2020).