Ontario Law Mandates Air Canada to Offer Refunds Amid Potential Pilot Strike Disruptions

The Travel Industry Council of Ontario (TICO) has announced that Air Canada must provide refunds for customers on flights affected by a potential pilot strike next week.

This requirement is in line with Ontario law, despite the airline's current policy, which only offers refunds for those who purchased refundable tickets. The strike, which could begin as early as September 18, follows a vote by over 5,000 pilots represented by the Air Line Pilots Association (ALPA) to authorize labor action if a new agreement isn’t reached. Flight disruptions may start as soon as September 13.

Air Canada has introduced a flexible rebooking policy, allowing passengers with flights booked between September 13 and 23 to rebook without any change or fare difference fees. However, for vacation packages, Air Canada Vacations (ACV) is only offering a one-time $50 credit per passenger for date changes or a future travel credit valid for one year, with a strict “no refunds” policy. According to TICO, Ontario law mandates that if flights are canceled due to a labor disruption, passengers must be given the option of a full refund, alternative travel services, or a voucher for future use.

TICO’s statement emphasized that if a travel retailer or wholesaler cannot provide the travel services sold due to a supplier's failure, such as a flight cancellation, consumers have the right to choose their preferred compensation. For those opting for a refund, Ontario’s consumer protection laws require it to be issued within a reasonable timeframe. This legal requirement overrides any internal policies by Air Canada or ACV that might restrict refunds.

Currently, Air Canada flights are operating normally, but if a strike notice is issued—potentially after 12:01 a.m. EDT on Sunday, September 15—the airline will have 72 hours to wind down operations. This could involve canceling certain holiday packages and grounding some aircraft as early as Friday, September 13. This situation could lead to widespread disruptions and cancellations, creating challenges for both travelers and travel advisors working to manage these issues.

TICO CEO Richard Smart highlighted the importance of flexibility in these situations, noting that large-scale cancellations can be highly stressful for both consumers and travel advisors. However, Ontario's consumer protection laws ensure that travelers have options to get their money back if their travel plans are affected by such disruptions. He advised travelers to remain informed and consult with their travel advisors to understand their rights.

Air Canada is preparing for the potential strike and its implications, but travelers should be aware of their rights under Ontario law. As the situation develops, it is crucial for passengers to stay updated on any changes to their flights or vacation packages and to know that they are entitled to a refund if their flights are canceled due to the strike.