Air Canada has approved a $ 4.5 million settlement for delayed U.S. passenger refunds

By David Shepardson and Allison Lampert

WASHINGTON / MONTREAL (Reuters) – Air Canada has agreed to a $ 4.5 million settlement to settle a U.S. government investigation into allegations that thousands of returns for air passengers have been delayed, the Department of Transportation said.

The proposed agreement, which has yet to be approved by an administrative law judge, would resolve the U.S. Department of Transportation investigation, saying it was “a huge delay in providing carriers with refunds or refunds to thousands of consumers for U.S. flights.” has changed significantly “.

Of the $ 4.5 million settlement, $ 2.5 million will be paid to Air Canada to return passengers and $ 2 million to the U.S. Treasury.

Air Canada said it agreed to resolve it without finding any flaws “to avoid lengthy litigation, as Air Canada, along with all stakeholders, is focused on rebuilding after the pandemic.”

Air Canada said $ 730.4 million ($ 575 million) in refunds for flights significantly changed since March 2020 and more than $ 10 million for passengers who are not eligible for a refund under U.S. law.

In June, the department said it was seeking a $ 25.5 million fine https://www.reuters.com/business/aerospace-defense/us-seeks-255-million-fine-air-canada-over-delayed-refunds-2021 -06-15 Air Canada failed to provide punctual refunds to carriers, alleging that Air Canada continued with a no-refund policy for more than a year in violation of U.S. law.

The U.S. Department of Transportation said it intends to soon propose formal rules to codify interpretations by airlines that provide immediate refunds, including when carriers cancel or make a major change, including when the purchased ticket is not refundable. The rules will also address “additional protections for consumers who are unable to travel due to government restrictions.”

Air Canada said in June that non-refundable tickets were being returned as part of the Canadian government’s financial package.

The Department of Transportation announced in June that it was “actively investigating the return practices of other U.S. and foreign carriers to the United States and those flying,” saying it would take “enforcement measures” as appropriate. He repeated those comments on Monday.

($ 1 = 1.27 Canadian dollars)