Dr. Barry Stephenson, Associate Professor and Head of Religious Studies, believes Air Canada is committing fraud after failing to obtain fair and proper refunds. This issue dated back to March 2020.
COVID-19 was declared a global pandemic on March 11th, 2022, which sent the world into freefall- bringing much of the airline industry’s business with it.
As lockdowns commenced and travel advisories were issued, Dr. Barry Stephenson and his wife lived in Prague for a sabbatical. Dr. Stephenson held a research fellowship at Charles University.
However, when Prime Minister Trudeau advised Canadians abroad to return home, the two booked two flights home with Air Canada.
Initially booked on March 18th, 2020 and set to depart on March 29th, 2020. – Stephenson’s two plane tickets totalled $2425.26, but the flights were subsequently cancelled as the severity of the COVID-19 pandemic developed.
The Stephensons returned home at 2 AM on March 24th, 2020. They then received an email notification of the cancellation for the March 29th flight.
The amount charged for the ticket shown was $1647.82 despite the original booking costing $2425.26. The booking reference was the same, but the ticket numbers had changed, resulting in a discrepancy of CAD 777.
Timeline of Inquiries
Dr. Stephenson contacted Air Canada by phone around March 30th, 2020, to inform them of the issue.
He was told there was general chaos, to be patient, and that they (Air Canada) were working through the cancelled flights.
After no change or contact, he filled out an online complaint regarding the situation one month later.
Air Canada responded on May 5th, 2020, stating:
Air Canada is currently working on a self-serve option that allows customers to redeem the remaining value. Unfortunately, it is not ready yet. If you want to make a booking before the self-serve option is available, please let me know, I will be happy to help you create this manually.”
Credit: Dr. Barry Stephenson
Stephenson then called Air Canada again to explain the discrepancy between the price paid and the price shown on the cancelled ticket. He wanted to make sure the total value of the ticket would be recognized.
Air Canada’s response was the same: they are working as fast as they can.
On January 7th, 2021, Air Canada sent a voucher for the Stephenson’s cancelled ticket, not in the original amount of $2425.26, but only $1647.82.
Federal Government forms liquidity agreement with Air Canada
In April 2021, Air Canada and the federal government agreed to allow Air Canada to access up to $5.879 billion in liquidity through the Large Employer Emergency Financing Facility (LEEFF) program.
In the media release, Air Canada agreed to several commitments: service to regional communities, restrictions on the use of the funds provided, employment and capital expenditures, and the agreement were also expected to speed up customer refunds.
As a result, Air Canada would reimburse passengers for cancelled flights due to the previous year’s lockdowns and convert their flight vouchers to cash.
Dr. Stephenson made an application for this and received a refund of $1647.82 on May 10th, 2021.
However, over a year later and over two years since the original flight cancellation, he was still out $777, despite countless efforts to get fully refunded.
Fraud?
Stephenson believes Air Canada is committing fraud.
He says, “given the number of people having trouble obtaining fair and proper refunds. This is especially disturbing, given that some of the public money given to Air Canada to deal with refunds of cancelled flights went to boosting compensation packages.”
The Oxford Languages Dictionary defines fraud as wrongful or criminal deception intended to result in financial or personal gain. However, whether the issue can be determined as fraud on legal grounds depends on if it will reach a courtroom.
As reported on Global News, Members of Parliament from all parties voted unanimously to condemn Air Canada for paying millions of dollars in executive bonuses following their LEEFF Agreement.
Prime Minister Justin Trudeau called the situation “unacceptable,” as 25,000 employees were laid off. The airline has refused to compensate Canadians for flights cancelled because of the pandemic.
CAD 777 is not pocket change for the vast majority of individuals in today’s economy.
Coincidentally Refunded
The Muse reached out to Air Canada’s Media Centre regarding the matter on May 16th, 2022, and has yet to receive a response.
In the meantime, Dr. Stephenson received an email from Air Canada on May 18th, 2022. It stated that his refund of $777 was being processed- this notice came one year and eight days after the previous refund of $1647.82.
A couple of days later, the refund was made on his credit card, promptly settling his case with Air Canada.
However, Dr. Stephenson believes media intervention may have had something to do with it.