Complaints are piling up at the Canadian Transportation Agency (CTA). Since mid-March, the agency has received over 8,000 complaints as airlines have faced a backlash from customers over their stances on refunds amid a challenging financial year.
A large backlog at the CTA
A report in the Winnipeg Free Press states that the Canadian Transportation Agency has received over 8,000 complaints on airlines since mid-March. This number, while creating a significant backlog, also beat out the total number of complaints from the previous fiscal year. In the fiscal year of 2019-2020, the agency received just under 19,400 complaints, of which over 9,100 were resolved.
Earlier this year, Simple Flying reported that the CTA received 5,500 complaints from March 11th through May 28th– a staggering sum for a period less than three months. This led to a significant backlog in the agency's processing of such issues.
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Refunds were likely on customers' minds
Around the world, customers and airlines alike have been grappling with what to do when it comes to refunds. Early in the crisis, there was some confusion as to whether or not customers were entitled to refunds for canceled bookings due to the ongoing global crisis. The CTA later clarified its stance.
However, there were some lawsuits filed in an attempt to get cash refunds from airlines. It has been a hot button topic in Canada, making it as far up to Prime Minister Justin Trudeau's attention. Canada's Transportation Minister also weighed in, warning that airlines could fail if refunds are mandated.
In the United States, refund complaints were plentiful for foreign and domestic airlines. In fact, Air Canada took the top spot when it came to complaints about refunds from customers in the US Department of Transportation (DOT)'s May report.
Airlines in Canada and around the world have preferred to provide vouchers or flight credits in lieu of refunds. Essentially, an airline holds onto a passenger's money for a specific amount of time, usually about two years amid the current crisis, and gives passengers the flexibility to book travel using those credits. After the expiration of those credits, however, passengers do not get their money back or have access to a flight credit.
About the CTA
The Canadian Transportation Agency bills itself as "an independent, quasi-judicial tribunal and regulator that has, with respect to all matters necessary for the exercise of its jurisdiction, all the power of a superior court."
Its core mandates include ensuring the transportation system in Canada runs smoothly, efficiently, and in the interests of all Canadians; protecting human rights and promoting accessible transportation for persons with disabilities; and, lastly, providing consumer protection for air passengers.
When it comes to getting claims for compensation from airlines, the CTA's Air Passenger Protection page states that passengers are entitled to a refund if a flight is canceled for a reason within the airline's control. However, for reasons outside of the airline's control, such as weather conditions, natural disasters, medical emergencies, war or political instability, labor dispute, manufacturing defects in an aircraft, or requests from a security official, then airlines are not obligated to provide a refund, only rebooking.
Those who do submit a complaint to the CTA can expect the agency to try and facilitate a resolution between passengers and the airline through a dispute resolution process.
Where do you stand in the refunds vs. vouchers debate? Have you filed a complaint with the CTA this year? Let us know in the comments!