TICO: Air Canada Must Pay Refunds for Strike Disruptions

If your client has an Air Canada vacation booked for next week, they might be eligible for a full refund—but only if flights are canceled.  

The Travel Industry Council of Ontario (TICO) released a statement in anticipation of an Air Canada pilot strike next week that says Air Canada must pay refunds for passengers on impacted flights, despite the current offer from Air Canada. Here are the details:

Over 5,000 pilots, represented by the Air Line Pilots Association (ALPA), voted to authorize labor action if a new deal is not reached. A strike could occur as early as Sept. 18, but flight disruptions are expected to start as early as this Friday (Sept. 13). 

Air Canada introduced a flexible rebooking policy ahead of the strike offering guests with flights booked between Sept. 13 to 23 the option to rebook without change or fare difference fees (conditions apply). Under this policy, guests could only request a refund if they had purchased a refundable tickets.

On the vacation package side, Air Canada Vacations (ACV) is currently offering a one-time $50 credit per passenger for those who change their travel date. Customers can also opt for a future travel credit for the full amount, which is good for one year. The most recent travel advisory states, “refunds will not be permitted.” 

According to TICO, if a labor disruption results in flight cancellations, Air Canada and ACV are required by Ontario law to offer a refund if that’s what the customer prefers. 

From the statement:

“Under Ontario law, if a travel retailer or wholesaler acquires rights to travel services for resale to other registrants or consumers (e.g., Air Canada Vacations) and is unable to provide the travel services purchased due to the failure of a supplier(s) to provide the service (e.g., flight to destination), then the consumer must be offered THEIR CHOICE of:

• A refund;

• Comparable alternate travel services acceptable to the customer; or

• A voucher or similar document that is acceptable to the customer for future redemption towards travel services.

Where a consumer prefers a full refund for a travel package sold, or otherwise provided by Air Canada Vacations, Ontario’s consumer protections laws require a refund be provided within a reasonable timeframe.”

Currently, Air Canada operations are not affected and flights are operating as scheduled. If flight suspensions do occur, Air Canada will begin to wind down operations once the 72-hour strike or lock-out notice is issued, which can occur any time after 00:01 EDT on Sunday, Sept. 15.

Based on the airline’s contingency plans, some activities would need to start as early as Friday, Sept. 13, including the cancellation of some holiday packages and the grounding of some aircraft.

“Large-scale travel cancellations can be challenging, not just for travellers whose plans and expectations are disrupted, but also for travel advisors who work hard to support their clients through stressful times,” said TICO CEO Richard Smart. “While no one wants to see their travel plans cancelled, consumers can rest assured knowing they have flexibility, including getting their money back, if a component of their package can’t be provided.”