WABUSH, N.L. — When Amanda Payne saw online that Air Canada was pulling out of the airport in Wabush she figured it wouldn’t be difficult to get a refund on a $1,700 voucher the airline owed her. Now, she and many others find that Air Canada isn’t offering most people refunds, but flight vouchers instead.
For people living in Labrador City or Wabush, the closest airport now that will have an Air Canada flight is in Happy Valley-Goose Bay, approximately 530 kilometres away.
Payne and her husband had originally booked a flight to Toronto for the end of March, but the COVID-19 pandemic derailed those plans. Air Canada gave them a credit at that time, and when it announced the airline wouldn’t fly out of Wabush anymore, she wanted a refund.
Payne said that when she called Air Canada, the person she spoke to told her no refunds were being issued to passengers, just vouchers for future flights. Payne said the woman didn’t let her explain the situation in Wabush and wouldn’t let her speak to someone else.
“I just didn’t feel they cared at all,” she said. “I understand Air Canada is in a difficult financial situation, as are many Canadians. Some people could benefit from that credit, that money they’re owed, to help with bills they might not have the money for now.”
A couple of days later she saw a post on social media about the issue and found out there were many others in the same situation that she is. Some people have gotten their money back, depending on a variety of factors, but many were having difficulty.
SaltWire contacted Air Canada about the closure and concerns over refunds and was told the airline would contact affected customers, offering them different options. A statement from the airline said COVID-19 has affected them greatly.
“As Air Canada has already stated, we believe it will take a minimum of three years to restore air travel to pre-pandemic levels because we anticipate weaker demand in both domestic and international markets,” the statement read. “The Company is currently losing nearly $20 million per day. Faced with this unsustainable situation, Air Canada has no choice but to take decisive action to reduce its cost structure and slow the depletion of its cash reserves.”
As far as Payne is concerned it’s a breach of contract since the company isn’t able to complete her itinerary without her having to fly or drive to another airport. She contacted the Canadian Transportation Agency to file a complaint, and part of that process is filing a written complaint with the airline. She tried to lodge a written complaint or written request for a refund on the Air Canada website, but it just loops you back to a page telling you to contact customer service, she said.
She has filed a complaint with the agency and encourages others in a similar situation to do the same.
Payne said she is concerned for people who have to travel out of the region for things such as medical appointments, with only Provincial Airlines (PAL) flying out of Labrador West to the island or other parts of the East Coast.
Wabush Mayor Ron Barron echoed Payne’s concerns about refunds and medical travel and said he immediately contacted PAL to see what its plans were, considering the changes announced by Air Canada.
“They assured us that if they need to add more flights here, they will do that,” Barron said. “There were concerns raised about costs, with them being the only game in town now, and all that was relayed was they will charge what they need to charge.”
PAL sent out a news release following Air Canada’s announcement, saying it is committed to servicing the Atlantic region and will “continue to monitor events in the market and progressively enhance scheduled services to meet community requirements.”
Barron said the reality is there is a lot of travel in and out of the region, for business and for pleasure, and Air Canada’s cancellation of its flights will have an impact.
Evan Careen is a Local Journalism Initiative reporter covering Labrador for SaltWire Network
