CANADIAN flag carrier air Canada has agreed with US aviation regulators to pay US$4.5 million in settlements over not properly giving refunds to US travellers when flights were cancelled or altered during the Covid crisis, reports Bloomberg.
The settlement would be the largest ever by the agency's Office of Aviation Consumer Protection. The airline would pay $2.5 million to passengers, with the remaining $2 million going to the US Treasury.
'Today, the US Department of Transportation's OACP is holding airlines accountable by ensuring that they treat passengers fairly when flights are significantly changed or cancelled.' said Department of Transportation (DOT) deputy secretary Polly Trottenberg.
The penalty is for Air Canada's delays in providing refunds to thousands of consumers for flights to or from the United States.
Said Air Canada representative Peter Fitzpatrick: 'Air Canada and the DOT have agreed to settle this matter without prejudice or any finding of wrongdoing,'
'This agreement was entered into to avoid protracted litigation as Air Canada focuses, together with all stakeholders, on rebuilding following the pandemic.' said Mr Fitzpatrick.
Under US law, airlines must offer refunds to passengers if a flight is cancelled, or the carrier significantly changes the schedule.
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The settlement would be the largest ever by the agency's Office of Aviation Consumer Protection. The airline would pay $2.5 million to passengers, with the remaining $2 million going to the US Treasury.
'Today, the US Department of Transportation's OACP is holding airlines accountable by ensuring that they treat passengers fairly when flights are significantly changed or cancelled.' said Department of Transportation (DOT) deputy secretary Polly Trottenberg.
The penalty is for Air Canada's delays in providing refunds to thousands of consumers for flights to or from the United States.
Said Air Canada representative Peter Fitzpatrick: 'Air Canada and the DOT have agreed to settle this matter without prejudice or any finding of wrongdoing,'
'This agreement was entered into to avoid protracted litigation as Air Canada focuses, together with all stakeholders, on rebuilding following the pandemic.' said Mr Fitzpatrick.
Under US law, airlines must offer refunds to passengers if a flight is cancelled, or the carrier significantly changes the schedule.
SeaNews Turkey