Air Canada strike: TICO posts guidance for ACV bookings, clarifies role in labour dispute

With a potential pilot strike at Air Canada on the horizon, the Travel Industry Council of Ontario (TICO) has posted guidance for consumers who booked trips with Air Canada Vacations (ACV) – either directly or through a TICO-registered travel retailer.

The guidance, posted Tuesday (Sept. 10), specifically addresses ACV because it’s a TICO-registered tour operator.

TICO regulates travel agencies and tour operators in Ontario, while airlines are regulated at the federal level by the Canadian Transportation Agency (CTA). 

As for rules around delays and compensation, those are outlined in the Air Passenger Protection Regulations.

Regulations for ACV bookings (Ontario only)

Should a labour disruption begin with flight cancellations at Air Canada, TICO says the following regulations will apply:

Under Ontario law, if a travel retailer or wholesaler acquires rights to travel services for resale to other registrants or consumers (ie: Air Canada Vacations) and is unable to provide the travel services purchased due to the failure of a supplier(s) to provide the service (ie: a flight to destination), then the consumer must be offered their choice of:

• A refund;
• Comparable alternate travel services acceptable to the customer or;
• A voucher or similar document that is acceptable to the customer for future redemption towards travel services.

If a consumer prefers a full refund for a travel package sold, or otherwise provided by ACV, Ontario’s consumer protections laws require a refund be provided within a reasonable timeframe.

READ MORE: Air Canada preparing to suspend operations as union talks near impasse

“Large-scale travel cancellations can be challenging, not just for travellers whose plans and expectations are disrupted, but also for travel advisors who work hard to support their clients through stressful times,” said TICO's CEO Richard Smart, in a statement. “While no one wants to see their travel plans cancelled, consumers can rest assured knowing they have flexibility, including getting their money back, if a component of their package can’t be provided.”

READ MORE: Six things to know about Air Canada’s potential pilots’ strike; airline needs to “get serious,” says union

While Air Canada flights have yet to be cancelled (although, disruptions to holiday packages could start as soon as this Friday, Sept. 13), ACV is offering a goodwill policy, which allows consumers with imminent travel to change their plans or receive a future travel voucher.

Thousands will be impacted

Air Canada on Monday (Sept. 9) revealed that it was finalizing plans to suspend most of its operations, likely beginning Sunday (Sept. 15), as talks with its pilot union, the Air Line Pilots Association (ALPA), near a deadlock over "inflexible" wage demands.

Air Canada and Air Canada Rouge, together, operate about 670 flights per day. Unless they reach a deal with the ALPA, the shutdown could affect up to 110,000 passengers daily.

Wages remain a key sticking point in the negotiations, which have been active for more than a year now. Air Canada's more than 5,000 pilots are seeking compensation in line with what their U.S. counterparts make.

"Air Canada continues to post record profits — and reward its executives handsomely — while expecting pilots to accept below-market compensation," First Officer Charlene Hudy, chair of the Air Canada master executive council for ALPA, told CBC News on Monday. "Now, because of their corporate greed, Air Canada is preparing to disrupt flights and inconvenience passengers."

What’s TICO’s role?

While Air Canada has also posted a goodwill policy, which currently allows passengers to change their flight for free if they’re travelling between Sept. 15-23, consumers are (arguably) still at risk if they book an Air Canada flight.

With that in mind, where does TICO’s role – as Ontario’s travel regulator, overseeing consumer protection – start and end?

Shouldn’t TICO, at the very least, be telling Ontario travel agencies to warn passengers about a potential Air Canada strike, before selling a ticket?

PAX emailed this question, and others, to TICO on Tuesday (Sept. 10). In an emailed response, Richard Smart wrote that TICO “does not have the authority or jurisdiction to mandate travel agencies related to commercial decisions, unless they are not in compliance with Ontario’s consumer protection laws.”

Smart went to say that under Ontario’s regulations, travel agencies are required to inform clients of information that “may impact the client’s decision to travel."

“This could include anything from major renovations at a resort to a potential air travel disruption on the planned travel dates,” Smart wrote.

Does TICO have a policy in place for Ontario travel agencies for situations like this?

Smart says that, historically, TICO has addressed the consumer protection available when a component of a travel service package is cancelled or otherwise unavailable where the travel seller is responsible for the risk.

“The regulation specifically addresses situations where a component of a package can’t be provided [such as a flight] and the options that must, by law, be presented to the consumer,” he wrote.  

As for the Ontario Travel Industry Compensation Fund (which compensates consumers in Ontario who paid for, but did not receive travel services), that only applies to situations where a travel agency, tour operator, airline or cruise line is bankrupt or permanently ceases operations.

Labour disruptions, like Air Canada’s potential pilot strike, are not covered.

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