This enactment amends the Canada Transportation Act in order to add a declaratory provision specifying that the carrier who cancels an air service must refund the passenger for the air service not received.

Preamble

Whereas air passengers have a legitimate right to be refunded when they do not receive the carrier’s air services for reasons beyond their control;

Whereas the law has always recognized the importance of protecting consumers by, among other things, providing for a refund to consumers when merchants cannot meet their primary obligation to provide the agreed-to goods or services, which includes the duty for parties to act in good faith even when faced with extraordinary circumstances;

And whereas it is important to recognize passengers’ rights, including the right to a refund when air services are cancelled;

Now, therefore, Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada enacts as follows:

Cancellation of Air Services

Providing refund — cancelled air service

85.‍2 (1) For greater certainty and despite any provision of this Act or any regulation made under this Act, the carrier who cancels an air service, for reasons beyond or within their control, must refund the passenger the costs, fees, charges and taxes that the passenger has paid for the air service not received.

Method used for refund

(2) The refund provided for in subsection (1) is to be made using the manner of payment that the passenger used to purchase the air service.

Tariff

(3) The carrier’s obligation under subsection (1) is deemed to form part of the terms and conditions set out in the carrier’s tariffs in so far as the carrier’s tariffs do not provide more advantageous terms and conditions of carriage than those obligations.‍

No exemption

(4) Despite any provision of this Act or of any other Act of Parliament or any regulation made under this Act, no exemption from the obligation to provide a refund under subsection (1) may be granted to a carrier, except as provided for in an Act of Parliament enacted after the coming into force of this section.