US authorities are seeking more than $25 million in damages from Air Canada, arguing that Air Canada was unable to immediately compensate customers whose flights were canceled or significantly delayed.
• Read also: Tickets in English have been paid for by Air Canada
The US Department of Transportation has filed a formal complaint against Air Canada and is seeking at least $25.5 million on behalf of thousands of travelers whose flights have been canceled or delayed in the United States in the wake of the pandemic.
The amount of civil penalty is based on a variety of factors, such as the problems caused by infractions to consumers [à la politique de remboursement américaine]. The department said in a statement that the penalty was also aimed at ensuring that neither Air Canada nor other airlines would comment on similar violations in the future.
Under US law, the air carrier usually has one to three weeks to refund a canceled or significantly changed ticket.
The Ministry of Transport announced in May 2020 that it would tolerate certain delays in reimbursement requests, due to the pandemic, provided that airlines act in “good faith”.
“Air Canada did not act in good faith. On the contrary, almost a year after the May 2020 announcement, Air Canada maintains a non-repayment policy in violation of US law,” according to US authorities.
The US government said it had received more than 6,000 complaints against Air Canada for refusing to refund money 1he is March 2020.
The air carrier said on Tuesday that it intends to appeal the “baseless” measure taken by the Department of Transportation.
“As stated in [Foire aux questions (FAQ)] Pascal Deere, a spokesperson for Air Canada, said that these documents are only guidance documents from the agency and are not properly defined rules under the Administrative Procedure Code.”
Besides, the department’s reimbursement FAQ on COVID-19 recognizes that it “does not have the force of law and is not designed to obligate regulated entities in any way,” she added.
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