Air Canada and Transat have decided to keep in their coffers billions of dollars that the passengers had paid in advance for… flights and vacation that the two airlines have cancelled due to the pandemic of the COVID-19.
Instead of a cash refund ringing, the customers of our two major air carriers must make do with a credit for a future trip.
What other canadian carriers are also subject to their customers.
But… In the case of Air Canada and Transat, the refusal to repay the customers appears to me to be especially unacceptable given the very expensive purchase of Transat Air Canada is on the verge of conclude.
Think about it for two minutes : Air Canada has committed $ 720 million $ to the shareholders of Transat, either $ 18 per share, while it is currently trading around $ 7.
It is therefore possible to say that the money advanced by its customers will enable Air Canada to pay the very big price for the shares held by the shareholders of Transat.
Alone, the senior officers and directors of Transat will share approximately $ 48 million, of which a third will go to the CEO, Jean-Marc Eustache. The main shareholder of Transat, Letko Brosseau, will receive 124 million dollars.
NO FEDERAL PROTECTION
Please be aware that this appropriation of the money of the travellers by Air Canada, Transat and other carriers is done with the blessing of the Canadian transportation agency, which federal agency is responsible for enforcing the Law on transport in Canada and the Regulation on the protection of air passengers.
Well, yes ! The Canadian transportation agency is ” appropriate in the current context that the airlines provide to passengers affected vouchers or credits for flights in the future “.
Between hand over hand on our money or put away in the drawer a credit note for a journey unknown in the time, we agree that, in these times of economic paralysis, the cash back would have proven to be a “PROTECTION” much more useful and essential as a credit note trip.
ADVANCES OF $3 BILLION
The airlines have understood that it was better to have the money sounding in their chests that credit notes ! That is why they have rightly decided to maintain deposits or advances from customers in their chests in order to have sufficient liquidity to be able to deal with the sharp drop in income they suffer as a result of the temporary suspension of flights in this period of global war against the coronavirus.
As of march 31, last, the leader of Air Canada had in its coffers $ 2.6 billion as “passenger revenue received in advance” with its customers.
For its part, Transat reported, on 31 January last, to as “customer Deposits and deferred income” in the amount of 809 million $. According to the spokesperson for Transat, it will have to wait to 11 June next to know the total amount of customer deposits related to the cancelled trips that are currently stored in the vaults of Transat for liquidity purposes.
AND OF FEDERAL ASSISTANCE IN ADDITION to
While the airlines refuse to reimburse customers, Justin Trudeau gives them a mountain of financial assistance, which the generous wage subsidy, loan benefits, etc
The travellers themselves ? They are content to dream with their credit ratings !
This that are just because Élise Thériault of Option consommateurs and Gábor Lukács, of the site of passengers ‘ Rights.