Air Canada agrees to $4.5M settlement over delayed U.S. passenger refunds

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Air Canada has agreed to a $4.5 million settlement to resolve a U.S. authorities investigation into claims hundreds of air passenger refunds have been delayed, the Transportation Division stated.

The proposed settlement, which nonetheless have to be authorized by an administrative legislation choose, would resolve the U.S. Transportation Division investigation into what it stated have been “excessive delays in offering refunds to hundreds of shoppers for flights to or from the USA that the service canceled or considerably modified.”

Of the $4.5 million settlement, $2.5 million can be credited to Air Canada for refunding passengers and $2 million can be paid to the U.S. Treasury.

Learn extra:
Air Canada pulls out of federal help program as enterprise rebounds

In June, the division stated it was searching for a $25.5 million positive from Air Canada over the service’s failure to supply well timed refunds.

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Air Canada didn’t instantly remark, however stated in a U.S. authorities submitting it agreed to the settlement “to keep away from protracted litigation, because it focuses along with all stakeholders on rebuilding itself and doing its half to assist the restoration of the airline business.” Air Canada added it didn’t admit any violation as a part of the settlement.

The division alleged in June Air Canada continued its no-refund coverage in violation of U.S. legislation for greater than a 12 months.

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Air Canada stated in June it has been refunding non-refundable tickets as a part of the Canadian authorities’s monetary package deal.

The Transportation Division in June disclosed it was additionally “actively investigating the refund practices of different U.S. and overseas carriers flying to and from the USA” and stated it could take “enforcement motion” as applicable. It reiterated these feedback Monday.

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Learn extra:
U.S. seeks $25.5M from Air Canada over sluggish refunds amid COVID-19

In Might, a commerce group advised U.S. lawmakers that 11 U.S. airways issued $12.84 billion in money refunds to clients in 2020 because the coronavirus pandemic upended the journey business.

(Reporting by David Shepardson; further reporting by Allison Lampert in Montreal; Modifying by Alex Richardson)

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