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Air Canada agrees to settle $ 4.5 million on late refunds for U.S. passengers

Air Canada has agreed to a $ 4.5 million settlement to resolve a US government investigation into delayed refunds for thousands of air passengers, the Transport Bureau said.

A settlement that requires administrative law judge approval was “cancelled or significantly changed by the airline,” according to a U.S. Department of Transportation investigation.

Of the $ 4.5 million settlement, $ 2.5 million will be credited to Air Canada for passenger refunds and $ 2 million will be paid to the US Treasury.

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In June, the ministry said it was seeking a $ 25.5 million fine from Air Canada for the airline’s failure to provide a timely refund.

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Air Canada did not comment immediately, but said in a U.S. government filing that it had agreed to a settlement “to avoid protracted proceedings.” Air Canada added that it did not admit the breach as part of the agreement.

In June, Air Canada’s alleged division continued its non-refundable policy for over a year in violation of US law.


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Air Canada said in June that it was refunding non-refundable tickets as part of the Canadian government’s financial package.

The June Transport Bureau said it was “actively investigating refund practices of other US and foreign airlines to and from the US” and would take “enforcement measures” as necessary. .. It repeated those comments on Monday.

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US seeks $ 25.5 million from Air Canada with late refund in COVID-19

In May, an industry group told US lawmakers that in 2020, 11 US airlines would give customers $ 12.84 billion in cash refunds as the coronavirus pandemic disrupted the travel industry.

(Report by David Shepardson, Additional Report by Allison Lampert in Montreal, Edited by Alex Richardson)



Air Canada agrees to settle $ 4.5 million on late refunds for U.S. passengers

Source link Air Canada agrees to settle $ 4.5 million on late refunds for U.S. passengers

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