TORONTO -- The U.S. Department of Transportation’s Office of Aviation Consumer Protection will settle with Air Canada for US$4.5 million after filing an action against the airline for its extreme delay in providing refunds for flights to and from the United States that were cancelled or adjusted early in the pandemic.Part of the settlement is a US$2 million fine to be paid directly to the U.S. Treasury.and OACP was at first seeking a penalty of US$25 million.
U.S. law states that airlines must provide refunds upon request if they significantly change a flight, and that refunds must be delivered within seven days of the request if the customer paid with credit, and 20 days if they paid with cash. The original filing action also stated that Air Canada failed to make a good faith effort to process refunds when OACP announced that they were giving airlines more time to deal with the high volume of refund requests.
In the release announcing the agreement to settle, OACP stated that US$2.5 million will go towards refunding passengers who purchased a non-refundable ticket for a flight to or from the United States.
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