Refunds in case of cancellation: CTA tightens the screws on carriers

Airlines will soon be subject to new rules regarding refunds for cancelled or rescheduled flights.

According to the text of the federal legislation that will come into effect on September 8, airlines will be required to provide a reservation for the next available flight within 48 hours of a cancellation.

If this is not possible, airlines will have to offer, at the passenger’s option, either a new reservation or a refund, even when the cancellation is caused by a situation beyond their control.

The previous regulation provided for compensation only in the case of disruptions attributable to the carriers.

Refunds must be made by the same method of payment used to purchase the tickets, so a customer would be entitled to refuse compensation in the form of a travel credit.

The procedure must be completed within 30 days, the regulation states.

Once in effect, travellers will be able to file a complaint with the Canadian Transportation Agency if a carrier refuses to implement the new refund procedures.