Air Canada Refuses to Reveal State of Passenger Refunds Despite Seeking Bailout Package: Advocacy Group

One consumer advocacy group suggests that Air Canada has not been forthright about its customer refunds, despite still requesting financial aid from the federal government.

Over the past several months, a number of Canadian airlines have been locked in talks with the federal government regarding the terms of a bailout for the sector. A key issue that has been at the forefront of discussions is been the subject of passenger refunds, with the government saying that all public financial support would be contingent on travelers receiving refunds for cancelled flights. However, according to consumer rights group Air Passenger Rights, Air Canada has yet to reveal the status of its customer refunds to the public, all meanwhile requesting vital financial support from Ottawa.

The head of Air Passenger Rights, Gabor Lukacs, said that Air Canada has not been transparent about the number of passengers that have not received refunds. He insists that the airline should be required to reveal such information, and that it should be a condition for receiving a publicly funded bailout. “If they want public money, they have to cough up information,” Lukacs said. “You cannot have it both ways.”

Conversely however, Air Canada managing director for government and community relations, David Rheault, stated that reporting such information could be commercially sensitive to the company. Air Canada has thus far maintained that it is not required to issue refunds, and instead must use the cash to preserve liquidity for when air travel demand picks up following the pandemic. However, Rheault did note to Ottawa MPs on Thursday that the airline will issue refunds only if it receives a federal bailout.

Back in December, Canada’s federal government advised the Canadian Transportation Agency, which is in charge of dealing with issues related to passenger rights, to bolster rules that force airlines to refund customers for cancelled flights. However, the conditions would not apply to previously cancelled flights, and instead only be applicable to forthcoming cancellations.

Information for this briefing was found via The Canadian Press. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.