Consumer rights advocates are demanding compensation from Air Canada for the hundreds of thousands of passengers whose summer flights are canceled — but the airline’s intentions on the matter remain unclear.
The country’s largest carrier announced on Wednesday evening that it would cut more than 15% of its flights in July and August, amid the country’s flight network awash in an overwhelming upsurge in travel.
The move will see more than 9,500 flights, or 154 a day on average, cut from the airline’s schedule – which is already operating at just 80% of pre-pandemic levels. Flights primarily connect the airline’s hubs in Toronto and Montreal and use domestic or Canada-US routes. No international flights other than those to the United States were among the cancellations.
“This Canada Day weekend will be tough,” CEO Michael Rousseau told employees in a Thursday memo obtained by The Canadian Press.
“I wish I could promise you that the steps we are taking will result in an easy summer. While they will certainly bring some relief, it will take time and effort and we probably won’t see the full benefits until the latter part of July. »
Sylvie De Bellefeuille, a lawyer with the Quebec group Option consommateurs, says customers are “absolutely” liable for compensation under the Canadian Passenger Bill of Rights.
The Air Passenger Protection Regulations (APPR), which came into effect in 2019, require compensation — separate from refunds — of between $400 and $1,000 for a cancellation or delay “in the control of the carrier,” if the traveler chooses not to rebook, and in some cases even if they agree to do so.
“I believe it was Air Canada’s decision to cancel the flights,” said De Bellefeuille. Therefore, people should be entitled to compensation. »
While Mr Rousseau apologized for flight cancellations and “customer service failures”, the big boss also said in an email to travelers that the reduced schedules stemmed from tensions on the “global aviation system — which would be beyond Air Canada’s control — calling them “unprecedented and unforeseen”.
Air Canada says it will abide by APPR
Gabor Lukacs, president of the advocacy group Travelers Rights, said airlines had “oversold capacity” in a bid to claw back as much as possible from two years of negative results.
“Even though there were seats physically available on the plane, there was no pilot, there were no flight attendants, there were no gate agents” , he said, adding that a shortage of federal security and customs officers posed even more problems.
“These are cancellations that are under the control of the carrier […]. Airlines may claim otherwise, but these claims do not hold water. »
Air Canada explained in an email that customers would be automatically notified of cancellations, “and that process is ongoing.”
“We are able to rebook immediately in some cases, while in others we will continue to research alternatives and advise them if options become available,” spokesman Peter Fitzpatrick said.
Customers can request a refund at any time, he said.
Air Canada did not respond to questions about whether the cancellations were within its control, but said it would “meet its obligations under the APPR.” »
The sudden withdrawal of flights contrasts with the approach of WestJet Airlines, whose chief executive told The Canadian Press that it had gradually reduced its summer schedule throughout the spring to finally offer 32% fewer trips. to and from Toronto Pearson Airport in July than in 2019.
Air Canada shares fell $1.03, or 6%, to close Thursday at $16.04. It was worth more than $21 at the start of the month.
Jacques Roy, professor of transport management at the HEC Montreal business school, pointed out that the Montreal company’s revenues would suffer, even if grouping passengers on fewer flights would increase its efficiency.
“This is definitely not good news for Air Canada. It’s their high season — it’s the most lucrative quarter of the year, and for three years it’s been negative,” he said.
At least 400,000 passengers are likely to be affected, he added.
Stress for travelers
Cathy Gray booked for a family trip to Scotland months ago and has already had her flight postponed once.
“We have booked and paid for car hire and accommodation and are dreading what might happen to our August and September flight schedules and the domino effect on our plans,” she explained.
“All of this could have been avoided if the airlines hadn’t been so greedy. It’s a shame. »
The volume of passenger angst was evident on Air Canada’s website, which was inundated with requests from travelers wanting to check the status of their summer flight.
“We are currently experiencing technical problems which may prevent you from retrieving your reservation online,” said an alert on Wednesday evening at the top of the airline’s homepage.
Under federal regulations, passengers are entitled to alternative travel arrangements or a refund — at the option of the traveler — if they were notified more than two weeks in advance that their flight was canceled or delayed by three hours or more for reasons beyond the carrier’s control.
If the trip was canceled in 14 days or less, passengers should receive $1,000 for a cancellation or delay of at least nine hours, and between $400 and $700 for delays between three and nine hours.
Regardless of the notice period, a passenger who chooses to decline a rebooking should receive $400 in compensation, in addition to a refund.
The airline must endeavor to rebook passengers on a flight in its network that departs within nine hours of the original departure time. If he cannot, he must offer to make the reservation on another air network “as soon as possible”, and free of charge, according to the charter of passenger rights.