Air Canada has responded to a claim by the Canadian airline regulator, stating that it did not meet its rebooking obligations during a labor dispute last summer. The airline has indicated that it will challenge the formal penalty it received as a result.
Last August, approximately 10,000 Air Canada flight attendants went on strike after failing to reach a contract agreement with their union. The Canadian government intervened, ordering the employees back to work, but numerous flights were still canceled during the disruption.
The Canadian Transportation Agency (CTA) recently announced that it had imposed an administrative monetary penalty of $426,000 on Air Canada for its handling of passenger rebookings during the labor unrest. The CTA’s enforcement officers have issued notices of violations in various cases over the past year, and Air Canada’s penalty is the highest among them.
According to the CTA, Air Canada violated subsection 18(1.1) of the Air Passenger Protection Regulations by not meeting the requirements for flight cancellations due to reasons beyond the airline’s control. The agency’s investigation identified 71 violations by Air Canada, resulting in the $426,000 fine.
Air Canada has stated that it rebooked 200,000 passengers during the peak travel season, emphasizing that it made significant efforts to assist customers. The airline plans to contest the penalty, arguing that the regulator’s expectations were unrealistic given the circumstances.
The CTA has given Air Canada until April 18 to request a review before the Transportation Appeal Tribunal of Canada (TATC). The airline has filed for a review, asserting that the CTA should consider airlines’ diligence and real-world challenges in its enforcement actions.
While TATC confirmed Air Canada’s review request, a hearing date has not yet been determined due to scheduling constraints. Notably, Air Canada has previously had penalties reduced or dismissed by the tribunal in recent years, demonstrating a history of contesting regulatory decisions.