Jump to content

AirCanada News / Jazz News / Rouge News


Guest

Recommended Posts

On 5/21/2021 at 6:54 PM, Kargokings said:

The union said that forcing workers to cover their discreet tattoos and remove their additional piercings caused them stress and anxiety

Poor dears

  • Like 1
Link to comment
Share on other sites

Aeroplan Partners with Rocky Mountaineer on Luxury Rail Vacations

lg-rocky-mountain.webp
  • Earn up to 20,000 bonus Aeroplan points for each eligible traveller when booking a trip with Rocky Mountaineer
  • Aeroplan Elite Status members 50K and higher and Aeroplan Premium Co-Brand Cardholders are eligible for a complimentary upgrade to GoldLeaf Service on Rocky Mountaineer
  • Aeroplan members can redeem their points to book a Rocky Mountaineer journey

MONTREAL, May 27, 2021 /CNW Telbec/ – Air Canada announced today a new partnership for Aeroplan members to earn and redeem points, as well as enjoy premium benefits, when booking a new scenic rail journey with Rocky Mountaineer. Aeroplan members can earn up to 20,000 bonus points for each eligible traveller booked with Rocky Mountaineer.

“While spectacular from 30,000 feet above, the Rocky Mountains are even more breathtaking from the ground! Air Canada is pleased to offer Aeroplan members an opportunity to see some of the world’s most stunning natural scenery while riding in luxury aboard Rocky Mountaineer,” said Mark Nasr, Senior Vice President, Products, Marketing and eCommerce, Air Canada. “Aeroplan takes great pride in offering members unique and compelling travel rewards and, at a time when many Canadians plan to spend their summer holiday closer to home, our partnership with Canada’s Rocky Mountaineer opens the door to one of the world’s leading luxury experiences, right in our own backyard.”

“With this partnership we’re bringing together two leaders in Canadian travel,” said Peter Armstrong, Founder and Interim CEO for Rocky Mountaineer. “We are delighted to introduce our iconic luxury travel experience to Aeroplan members. Our train journeys are an enthralling way to explore the breathtaking scenery of western Canada and the southwest USA from our glass-domed trains. We know Aeroplan members are looking for epic travel experiences and we look forward to welcoming them on board our trains.”

Aeroplan members will be able take advantage of a special introductory offer to earn up to 20,000 bonus points for each traveller with a valid Aeroplan number when booking travel for 2021 with Rocky Mountaineer. Members can also redeem Aeroplan points for vacation packages and, through their Aeroplan Elite Status or Aeroplan Premium Co-branded credit cards, upgrade their onboard Service Level or hotel accommodation. Key features include:

  • Members can earn 20,000 bonus Aeroplan points per customer for booking in Rocky Mountaineer’s GoldLeaf® Service and 10,000 bonus Aeroplan points per customer for SilverLeaf® Service bookings for travel in 2021;
  • Aeroplan Elite Status members 50K and above receive an upgrade from Rocky Mountaineer’s SilverLeaf to GoldLeaf Service, and two nights of upgraded hotel accommodations while travelling;
  • Aeroplan Premium Co-Brand Cardholders will earn up to an additional point per dollar spent for a total of two points per dollar spent. Plus, they will receive an upgrade from Rocky Mountaineer’s SilverLeaf to GoldLeaf Service, and two nights of upgraded hotel accommodations while travelling;
  • Aeroplan Elite Status 25K and 35K members receive two nights of upgraded hotel accommodations while travelling;
  • Members can redeem Aeroplan points on the Aeroplan eStore for either dollar eVouchers starting at $50, or entire Rocky Mountaineer vacation package eVouchers.

For more information on Aeroplan and Rocky Mountaineer’s partnership and full details on the available offers please visit: www.aircanada.com/rockymountaineer.

Link to comment
Share on other sites

2 hours ago, Kargokings said:

Aeroplan members can redeem their points to book a Rocky Mountaineer journey

That's on the bucket list.

Link to comment
Share on other sites

Air Canada granted special stock awards and $10-million in bonuses while negotiating government bailout

Quote

“We’re disappointed the company was finding ways to keep paying bonuses to executives, while at the same time cutting off a lifeline for thousands of my members … [they] were left out to dry, and the federal government stood by and let it happen.”

Mon May 31, 2021 - The Globe and Mail
by David Milstead

Unprofitable Air Canada gave its executives and managers $10-million in “COVID-19 Pandemic Mitigation Bonuses” and handed out other special stock awards that were designed to compensate them for salary cuts the airline announced publicly during 2020.

The extra compensation – revealed in Air Canada’s annual proxy circular to shareholders – came as the airline negotiated a multibillion-dollar bailout with the Canadian government. The $5.9-billion federal rescue plan, announced in April, included limits on executive compensation in the future. During COVID-19, Air Canada also took $656-million from the federal government’s Canada Emergency Wage Subsidy program in 2020, a larger number than any other company has publicly disclosed.

Air Canada’s board explained the compensation decisions by saying the company’s senior executives “reacted urgently, decisively and skillfully to mitigate the impact of the COVID-19 pandemic on the company,” taking measures that included reducing its staff by 20,000. “And with equal vigour, the leadership team played offence,” Air Canada said in the circular, including “industry-leading personal safety and sanitary measures” and investments in technology and aircraft.

Chief executive Calin Rovinescu and deputy CEO Michael Rousseau waived 100 per cent of their salaries last April, May and June, and 50 per cent of their salaries for the remainder of 2020. The three other top executives whose compensation is disclosed took a 50-per-cent pay cut for three months, then 20 per cent for the remainder of the year. The cuts effectively reduced salaries for the five by $766,723 in total, including $490,000 for Mr. Rovinescu.

However, on Dec. 31 – the last day of the 2020 pay cuts – Air Canada handed out special “stock appreciation units” to the affected executives, giving them “the opportunity to recuperate their foregone salary.”

The board also explained in the circular that it realized in the early days of the pandemic that the goals in its existing annual cash bonus program – including a heavy emphasis on profitability – “were no longer applicable nor pertinent,” so it scrapped the plan “early” in 2020. The program was replaced by a new one based on pandemic goals of customer service, maintaining the airline’s liquidity and cost-cutting.

Air Canada says “management’s exceptional performance” resulted in the board approving $20-million in bonuses to management compared with the potential bonus pool of $45-million from the scrapped program. However, it paid out $10-million in bonuses, including $1.84-million to the top five executives.

The company also said it realized the pandemic’s big losses would eliminate the payouts for performance-based share units and stock options granted from 2017 to 2020 in its long-term incentive plan, so it decided to drop 2020′s results from the formula.

“Having three years of performance-based [awards] not paying out ... could potentially create an important ‘retention’ issue thereby putting the organization at-risk at a time when we most need our key talents to ensure our survival and future recovery for the benefits of our shareholders,” the company explained.

To offset the benefit to executives from the formula change, Air Canada said, it cancelled one-third to one-quarter of the awards for each year.

All told, Air Canada reported total compensation for Mr. Rovinescu of $9.26-million last year, down from $12.87-million in 2019. The figure includes a salary of $910,005, down from $1.4-million in 2019, and a bonus of $723,000, down from just under $3.5-million in 2019. Air Canada valued Mr. Rovinescu’s share, option and stock-appreciation awards at $6.66-million, down from $7.1-million in 2019.

Air Canada says Mr. Rovinescu, who retired from the top job in February, 2021, would have received $7.7-million in stock awards in 2020 had the pandemic not occurred. Mr. Rousseau succeeded Mr. Rovinescu as CEO on Feb. 15 of this year.

The recuperative stock-appreciation units allow for a payout based on the increase in Air Canada’s share price from $22.90, the stock’s average price on the final trading days of 2020, to Dec. 31, 2022. If the stock falls below that level, there will be no payout.

Mr. Rovinescu received 21,398 stock-appreciation units, which Air Canada estimated to be worth $168,396.

Air Canada’s revenue fell by 70 per cent in 2020 and the flag carrier lost $4.6-billion as it eliminated 67 per cent of its seat capacity and laid off more than half its work force. In a bid to reduce its cash expenses of $13-million a day, Air Canada shed 79 planes and cancelled orders for 22 aircraft. Air Canada also pulled out of several regional airports and suspended routes to several small cities, blaming the pandemic and government travel restrictions.

As part of the bailout deal reached in April, Ottawa provided $5.375-billion in repayable loans to Air Canada, including a $1.4-billion credit facility the airline can use to refund customers for flights cancelled because of the pandemic. Under the rescue package, Air Canada will not be able to use the money to buy back its own shares, and compensation for executives will be capped at $1-million a year.

Stock ownership records filed with securities regulators show that on April 16, Air Canada took away tens of thousands of stock options and share awards it gave to executives on March 1 of this year.

Wesley Lesosky, president of the Canadian Union of Public Employees’ Air Canada component, said his members who were laid off didn’t benefit from CEWS, which was meant to allow Canadian companies to keep workers on the payroll.

“We’re disappointed the company was finding ways to keep paying bonuses to executives, while at the same time cutting off a lifeline for thousands of my members … [they] were left out to dry, and the federal government stood by and let it happen.”

  • Sad 1
Link to comment
Share on other sites

“reacted urgently, decisively and skillfully to mitigate the impact of the COVID-19 pandemic on the company”

I would have thought this was part of the job description of senior executives…not typically something “above and beyond” worthy of bonuses especially when your employees are facing hardships that they aren’t.

  • Like 1
Link to comment
Share on other sites

Employment contracts are wonderful things.  When the Bonus structure is written into the contract there isn't much wiggle room.

Executives get bonuses based on performance.  That is a fact of life.  If you have never worked outside a unionized environment, you wouldn't understand performance based compensation.

The overall performance of the company rests squarely on the CEO.  HE is the one that takes the punches when things go awry ANYWHERE in the company. with that heap of responsibility comes compensation commensurate with it.  Ultimately it is his / her decisions that shape the company whether you want to admit that or not.

AC weathered the storm very well long before the government finally got involved to provide LOANS to keep them going.  The only thing that the so called "bail out" actually accomplished was getting cash into the hands of the non-refundable ticket holders who were given vouchers.  nothing more.

 

  • Like 2
Link to comment
Share on other sites

1 hour ago, boestar said:

When the Bonus structure is written into the contract there isn't much wiggle room.

lol, right - 'cut to desired length'

Quote

The board also explained in the circular that it realized in the early days of the pandemic that the goals in its existing annual cash bonus program – including a heavy emphasis on profitability – “were no longer applicable nor pertinent,” so it scrapped the plan “early” in 2020. 

 

Link to comment
Share on other sites

Airlines pull back on summer plans for P.E.I. in light of reopening dates

From CBC News – link to source story

Charlottetown airport expects ‘significant reduction in capacity’ compared to previous plans

CBC News · Jun 01, 2021

doug-newson.jpg Doug Newson, CEO of the Charlottetown Airport Authority, said he is now expecting fewer summer flights than he was anticipating earlier in the month. (CBC)

The chief executive officer of the Charlottetown Airport Authority says Prince Edward Island’s reopening plans are having a negative impact on the number of flights being scheduled for at least the early part of the summer.

Doug Newson told CBC News that talks have been taking place with Canada’s two major carriers, Air Canada and West Jet.

Newson said uncertainty around when the Island will actually welcome visitors without them having to isolate and monitor for signs of COVID-19 for two weeks have led to a scaling-back in some tentative plans for the 2021 summer schedule.

“It is a significant reduction in capacity,” he said. 

Only a single Air Canada flight — to and from Montreal — has been scheduled at P.E.I.’s main airport for several months as the pandemic brought air travel to a near-halt.

“Air Canada is still planning to add a flight to Toronto later in June, so as of June 17 we will have two flights: one Toronto, one Montreal,” Newson said. 

airport.jpg The Charlottetown airport has been operating at a fraction of its normal pace during the COVID-19 pandemic. (Kirk Pennell/CBC)

“WestJet is still planning to return on June 25, but they had originally planned to do 11 flights a week … that will be reduced down to four flights per week. 

“Air Canada had originally planned to double their flight numbers in July, so two Montreal flights as well as two Toronto flights, and that’s been cut in half.” 

Newson said August schedules for the airlines are not finalized.

The Charlottetown airport CEO said some of the other provinces are opening up to the rest of Canada earlier than P.E.I. plans to, and that will likely impact summer vacation booking plans. 

Newson agrees that safety is the top priority, but as COVID-19 vaccination rates go up he’s hoping P.E.I. officials will decide to move up the reopening schedule as well. 

 

Related

 
Link to comment
Share on other sites

16 hours ago, vanishing point said:

“reacted urgently, decisively and skillfully to mitigate the impact of the COVID-19 pandemic on the company”

I would have thought this was part of the job description of senior executives…not typically something “above and beyond” worthy of bonuses especially when your employees are facing hardships that they aren’t.

As much as I'm not a huge fan of AC management they did do the right thing and take the pay cuts early on. Calin was in Garneau's and Omar's face for over a year when many other Airline CEOs were pretty quiet.

 

Calin's performed well ( and paid well) as the CEO of AC for quite a long time now. COVID-19 for many, many industries is the equivalent of United in Sioux City, Iowa for a pilot. We are trained to act urgently, decisively, and skillfully too but no one could ever train for something like that. The world has never seen anything like COID since the Spanish flu almost a century ago. AC is still alive and ready to expand when demand increases. I'm sure id anyone knew we'd still  e dealing with this 15 months later they'd have done things a little differently ie pilot and aircraft resource management, but we all would have laughed at you if you said the 3rd wave would be the worst and happen 12 months into this..

  • Like 1
  • Thanks 1
Link to comment
Share on other sites

Air Canada Offers Fly to Rome on government-approved, COVID-tested flights starting July 2

air-canada-b787-9-e1530565751532.jpg?w=1


Starting July 2, 2021, Air Canada will begin operating government-approved, COVID-tested flights to Rome, Italy from Toronto and Montréal.

We are the only Canadian carrier participating in the program, offering Canadians the ability to travel to Italy without the need to quarantine. Passengers will only be required to provide a negative COVID-19 antigenic or molecular (RT PCR) test taken within 48 hours of departure and take another one on arrival.

rome-FCO.jpg

U.S. customers transiting through Canada to Italy on one of our direct flights to Rome can also benefit from this program.

Learn more about COVID-tested flights.

Link to comment
Share on other sites

Air Canada Clarifies and Updates 2020 Compensation Programs

Additional Actions Taken Voluntarily by Senior Executives

air_canada_logo.jpg?w=1024

MONTREAL, June 6, 2021 /CNW/ – Air Canada is providing updates  regarding its 2020 compensation outcomes and announcing additional actions being taken by its Senior Executives.

Summarized below are the key facts about the 2020 bonus payments and share appreciation units. Additional details about Air Canada’s and its Board of Directors’ practice and approach to executive compensation are contained in the company’s Management Proxy Circular dated May 6, 2021 and available at www.sedar.com.        

Calin Rovinescu's statement (CNW Group/Air Canada) Calin Rovinescu’s statement (CNW Group/Air Canada)

Link to view statement above in PDF

GENERAL:

  • The 2020 compensation outcomes for all Air Canada employees were among the many important decisions made during the pandemic in the best interest of Air Canada and its stakeholders.
  • These compensation outcomes were approved by the Board of Directors in mid-2020 in consultation with external advisors, and in conformity with the Corporation’s governance principles and best practices.
  • They were consistent with compensation outcomes at companies that also suffered significantly during the pandemic and comply with all of the company’s agreements and any applicable filing or other requirements.
  • Air Canada worked hard to preserve as many jobs as possible through the pandemic, with employee retention being a critical priority to enable continued operations through this extended crisis and to prepare for sustainable emergence from the pandemic.

2020 COMPENSATION PROGRAMS:

  • The $10 million bonus program was designed to provide relief and retention amounts for over 900 Air Canada employees. It is worth highlighting that more than $8 million of this amount was awarded to middle management (excluding executives). These amounts were in recognition of their work at a time of great dislocation and high risk for the organization.
  • In 2020, Air Canada raised through private sector sources some $8 billion to help stabilize its finances during the pandemic. No taxpayer dollars or funds from the Canadian government sector support package are being used to fund these bonus arrangements for Air Canada employees or executives.
  • In early 2020, senior executives and 3,200 management employees voluntarily agreed to total reductions of $11.5 million in their base salaries, subject to compensation through share appreciation units that might allow employees to recover some of the foregone salary if – and only if – the share price is higher by December 2022 as compared to December 2020.

CONCLUSION AND ADDITIONAL ACTIONS:

Every step of the way, management and the Board have acted in the best interests of Air Canada and its stakeholders and have been mindful of their role in mitigating the consequences of the pandemic. Throughout 2020, Air Canada has accordingly sought to do its part, such as by flying repatriation flights to bring stranded citizens home, operating cargo flights to bring much needed PPE to Canada and leading the way in Bio-safety medical studies and protocols, and it will continue to do so. 

Unfortunately, there is now public disappointment around the actions relating to these 2020 executive compensation outcomes. As an acknowledgement of this, and in order to help address this unintended consequence, the current Executive Vice-Presidents and the President and CEO of Air Canada have chosen to voluntarily return their 2020 bonuses and share appreciation units. In addition, former Air Canada President and CEO Calin Rovinescu who retired in February 2021 will be donating the value of his 2020 bonus and share appreciation units to the Air Canada Foundation. Read Mr. Rovinescu’s full statement attached.

Air Canada’s leadership team is completely focused on Air Canada’s recovery from the COVID-19 pandemic and preparations to welcome back furloughed colleagues and travelling customers as soon as possible. The airline looks forward to continuing to work with all stakeholders, notably the Government of Canada on many fronts, including the safe re-start of our industry.

ABOUT AIR CANADA

Link to comment
Share on other sites

2 hours ago, Kargokings said:

In early 2020, senior executives and 3,200 management employees voluntarily agreed to total reductions of $11.5 million in their base salaries

That bit made me laugh. I was told by quite a few of the junior managers in cargo that they were told they were taking a pay cut or they were out the door. I guess technically it is true. "Fred, we will have to let you go unless you take a pay cut"

Most of them starting looking for work elsewhere and I know of 2 that found better positions.

Link to comment
Share on other sites

Air Canada says senior executives to voluntarily return 2020 bonuses

Published Sunday, June 6, 2021 9:31PM EDT
Air Canada is facing a public relations debacle over bonuses to top executives. Glen McGregor has the reaction.
 

MONTREAL -- Air Canada says its senior executives have chosen to return their 2020 bonuses in response to "public disappointment."

The airline company says in a news release the president and CEO, as well as executive vice-presidents of Air Canada, have volunteered to return their bonuses and share appreciation units.

Former president and CEO Calin Rovinescu, who retired in February 2021, says he will also donate his share to the Air Canada Foundation.

The statement does not include middle managers, whose bonuses made up more than $8 million of the $10-million bonus program, among those who are volunteering their bonuses.

Finance Minister Chrystia Freeland signalled her displeasure Wednesday over the multi-million dollar packages handed out to the airline's executives as the company negotiated a federal bailout, calling the bonuses "inappropriate."

The airline last Monday disclosed its annual proxy circular to shareholders that gave the bonuses to people the investor document called instrumental in the airline's survival over the past year as air travel plunged during the COVID-19 pandemic.

"Air Canada's leadership team is completely focused on Air Canada's recovery from the COVID-19 pandemic and preparations to welcome back furloughed colleagues and travelling customers as soon as possible," Sunday's statement says.

"The airline looks forward to continuing to work with all stakeholders, notably the Government of Canada on many fronts, including the safe re-start of our industry."

In April, the airline and government agreed to a $5.9 billion loan package that includes money to help refund passenger tickets, but also capped executive compensation at $1 million until 12 months after the loan is fully repaid.

The government also paid $500 million for a six per cent stake in the country's biggest airline, which Freeland said was done to ensure taxpayers could benefit once Air Canada's revenue rises when regular travel resumes.

In early 2020, senior executives and 3,200 management employees voluntarily agreed to total reductions of $11.5 million in their base salaries, subject to compensation through share appreciation units that might allow employees to recover some of the forgone salary if the share price rises higher in December 2022 than December 2020, the company says.

Freeland and Transport Minister Omar Alghabra said Canadians "re right to expect responsible corporate behaviour -- particularly with respect to executive compensation -- from companies receiving government financial support during the pandemic."

"While this situation could have been entirely avoided by Air Canada, we acknowledge this step in the right direction by the top five executives to repay 2020 bonuses and share appreciation units they received," they said in a joint statement Sunday night.

This report by The Canadian Press was first published June 6, 2021.

Link to comment
Share on other sites

On 6/6/2021 at 8:38 PM, Kargokings said:

Finance Minister Chrystia Freeland signalled her displeasure Wednesday over the multi-million dollar packages handed out to the airline's executives as the company negotiated a federal bailout, calling the bonuses "inappropriate."

Has Freeland had her salary reduced at all, ever?

  • Like 2
Link to comment
Share on other sites

Air Canada set to recall 2,600 workers as demand for travel rebounds

From The Globe and Mail – link to source story

MONTREAL, THE CANADIAN PRESS | JUNE 10, 2021

L2WIMPQ4NZOPRNCPEJMXJOC54I.jpg Air Canada planes sit on the tarmac at Pearson International Airport during the COVID-19 pandemic in Toronto on April 28, 2021. Air Canada says it will recall more than 2,600 employees who were furloughed during the COVID-19 pandemic. NATHAN DENETTE/THE CANADIAN PRESS

Air Canada AC-T -1.11% decrease says it will recall more than 2,600 employees as it prepares for an increase in demand for flights.

The airline says those being recalled will include employees in various roles, including flight attendants, and will be brought back in stages in June and July.

Air Canada spokesman Peter Fitzpatrick says the airline moved to recall the workers because it is seeing vaccinations increase, COVID-19 cases decline and governments ease restrictions.

He says the recall is part of its efforts to rebuild the airline’s network and meet the expected demand for travel.

Air Canada laid off tens of thousands of workers as the pandemic swept Canada, including 16,500 last March, when the crisis began.

In April, the airline reached an agreement with Ottawa for a $5.9-billion aid package.

 

Related

 
Link to comment
Share on other sites

Air Canada Extends Deadline of Its COVID-19 Refund Policy by 30 Days

air_canada_logo.jpg?w=1024
  • ligible customers now have until July 12, 2021 to submit a refund request
  • Since April 13, 2021, approximately 40% of eligible customers have requested a refund; 92% of submitted requests have been processed

MONTREAL, June 10, 2021 /CNW Telbec/ – Air Canada announced today a 30-day extension of its COVID-19 refund policy. The policy allows eligible customers who purchased a non-refundable ticket before April 13, 2021 for travel on or after February 1, 2020, but who did not fly for any reason, to submit their request for a refund online or with their travel agent.

“The number of customers who have requested a refund is lower than anticipated and most have kept their travel credit, Air Canada Travel Voucher or Aeroplan points, which we are pleased to see as it is an indication they plan on travelling in the future. We also take this as a vote of confidence from our customers that they intend to fly with us on their next trip, and we are looking forward to welcoming them back onboard,” said Lucie Guillemette, Executive Vice-President and Chief Commercial Officer at Air Canada.

“For customers who want a refund, our employees have been working very hard to process requests as quickly as possible and will continue to do so, including in collaboration with our travel agency partners. We have in place an easy online refund process and we have also reached out to customers directly to advise them of their options. Still, given only approximately 40% of eligible customers have requested a refund, we are extending the initial deadline for requests.”

The COVID-19 refund policy covers tickets and Air Canada Vacations packages purchased for flights cancelled either by the airline or by the customer for any reason was initially due to expire June 12, 2021.

As of April 13, 2021 (the day on which the COVID-19 refund policy came into effect), Air Canada had a total of 1.8 million of its customer bookings eligible for a refund. To date, approximately 40% of these eligible customers have requested a refund, and 92% of those who have submitted requests have had their refund processed. Air Canada customers also have the option of accepting a fully transferrable Air Canada Travel Voucher (ACTV) with no expiry date or converting the value of their ticket to Aeroplan points with a 65% bonus. Customers who have already accepted an ACTV or Aeroplan points also have the option to exchange these for a refund to the original form of payment, including for the unused portion of any ACTV issued or in cases where a partial refund was provided. 

Customers can request a refund online at www.aircanada.com/refund until July 12, 2021. The policy also applies to Air Canada Vacations packages. Customers who booked through a travel agency must contact their agent directly. In support of its travel agency partners, Air Canada is not recalling agency sales commissions on refunded tickets that they process.  

Future travel policy

Air Canada’s new refund policy of offering customers options of refunds, an Air Canada Travel Voucher or equivalent value in Aeroplan Points with a 65% bonus should the airline cancel or reschedule a flight by more than three hours, is applicable to all tickets purchased.

About Air Canada

Link to comment
Share on other sites

https://www.bnnbloomberg.ca/u-s-seeks-us-25-6m-fine-from-air-canada-for-refund-delays-1.1617355

U.S. seeks US$25.6M fine from Air Canada for refund delays

The U.S. Department of Transportation is seeking US$25.6 million in fines from Air Canada for allegedly failing to provide timely refunds to U.S. customers after flights were canceled or significantly delayed, the agency announced on Tuesday.

The department’s Office of Aviation Consumer Protection said it received more than 6,000 complaints from consumers alleging Air Canada denied them refunds for flights that were canceled or delayed. In the complaint filed with an administrative law judge, the agency said it is seeking the civil penalty “for Air Canada’s extreme delays in providing the required refunds.”

The agency said the large penalty is “intended to deter Air Canada and other carriers from committing similar violations in the future.”

“When a carrier cancels or significantly changes a flight to or from the United States, the airline is responsible for providing refunds, upon request, according to U.S. law,” the agency said in a statement.

Airlines have seven days to refund passengers from the date of the request for flights purchased with a credit card and 20 days for flights purchased with cash, according to the agency.

Air Canada did not immediately respond to respond to a request for comment. The airline is required to file an answer to the complaint within 15 days, according to the Transportation Department.

Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
×
×
  • Create New...