How pandemic-grounded Air Canada customers can get their money back

Air Canada has started offering refunds to customers who bought non-refundabletickets for flights and vacations they didn't take as a result of the coronavirus pandemic.

Thousands of peoplesawtheir holiday plans upended when travel restrictions imposed to limitthe spread of COVID-19 causedwidespread flightcancellations. Others choseto cancel trips on their own in accordance with public health warnings that discouraged domestic and international travel.

Until this week, Air Canadawas refusingtorefund many ofthose customers andinstead offeredvouchers or other forms of credit that could be used to purchase future flights.

But ensuring those customers get their money back was a key condition of anagreement announced between the federal government and Air Canada yesterday. Under the deal, the federal government will provide $5.9 billion in financial support to the company through a mix of low-interest loans and equity financing.

In exchange for the support,Air Canada has agreed to refundcustomers, restoreregional routes and setlimits on executive compensation, share buybacks and dividend payments.

"We want to make sure that every passenger who bought a ticket within [the agreed-upon] dates will get refunded," said Transport Minister Omar Alghabra in an interview withCBC's Power & Politics today.

Here is whattravellers need to know about the changes.

Who qualifies for a refund?

As of today, Air Canada has amended its COVID-19 refund policy. The newpolicy applies to anyone who bought a non-refundable ticket or vacation package before Apr.13, 2021 for travel on or after Feb. 1, 2020.

Customers with tickets purchasedduring this period that werecancelled by the airline or cancelled voluntarily by the customer for any reason will have the option to receive a refund intheir original form of payment.

How do you apply for a refund?

How you apply for a refund depends on how you bought your ticket or vacation package.

Customers who purchased directly from Air Canada must apply online using the airline's website. Air Canada will accept online refund requests from eligible customers until June 12 at www.aircanada.com/refund.

Customers who booked through a travel agency or travel booking website must contact those companies directly. If the agency is no longer open forbusiness, customers have to call Air Canada's customer service line so that the airline can verify the company has permanently closed its doors before starting the refund process.

As part of the agreement between Air Canada and the federal government, travel agencies and booking sites get to keep any commissions they made on the ticket sales.

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What if you've already converted the ticket to a travel voucher or Aeroplan points?

Air Canada said customers who already haveaccepted an Air Canada travel voucher or Aeroplan points as recompense will have the option to exchange these for a refund in their original form of payment.

This includes customers who have used a portion of their travel voucher orhave received onlypartial refunds, the airline said.

How long will it take to get the refund?

Air Canada said it can take from one to threemonths for refunds to be processed, depending on the individual'sfinancial institution.

"We are committed to processing refunds as fast as possible," Lucie Guillemette, executive vice-president and chief commercial officer at Air Canada, said in a media release today.

Air Canada said it tracks bookings by passenger name records (PNRs), which could be for an individual traveller or fora group. The airline estimates it could have more than two million PNRs to process, although some passengers may be content withvouchers or Aeroplan points instead ofrefunds.

The airline said it already haspaid $1.2 billion to customers with refundable tickets.

What about future travel bookings?

Air Canada has amended its booking policy for all future travel.

Starting today,all customers will have the option to receive a refund, a travel voucher or the equivalent value in Aeroplan points in cases where the airline cancels or reschedules a flight for more than three hours. Those who opt for points can receive a 65 per cent bonus.

"This new policy will provide more certainty and flexibility, so customers can book their future travel with greater confidence, and we look forward to welcoming you back on board," said Guillemette.

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Transport Minister Omar Alghabra says the federal government is "very confident" that the deal reached with Air Canada will lead to a jump in employment beyond the jobs formally secured in the deal: "We know there will be a bigger number."

Which regional routes will be restored?

Under the deal with the federal government, Air Canada has agreed to restore flights on 13 regional routes no later than June 1, 2021.

Air Canada service at the following suspended airports will resume as long as public health advice permits:

• Bathurst
• Comox
• Fredericton
• Gander
• Goose Bay
• Kamloops
• North Bay
• Penticton
• Prince Rupert
• Saint John
• Sandspit
• Sydney
• Yellowknife

What if you'rea customer of another airline?

Deputy Prime Minister and Finance Minister Chrystia Freeland said Monday that the federal government is still in negotiations with other airlines on possibleaid packages.

Freeland describedtalks with Calgary-based WestJet the country's second largest airline as "constructive."

"The basic general requirements of the government of Canada, of course, will be the same the importance of refunds, the importance of restoration of regional routes, the importance of maintaining employment, the importance of restrictions on executive compensation," she said. "But the precise shape of an agreement will depend on the specific needs of each airline."

In October,WestJet announced it would start a six- to nine-month process of refunding passengers with refundable and non-refundable tickets for flights cancelled by the airline duringthe pandemic. Passengers with non-refundable tickets who cancelled their flights on their own are not eligible.

In a statement issued Monday, WestJet said it plans torestore service to all 42 airports it served before the pandemic "at our earliest opportunity" and that its refund policy is "industry-leading" in Canada.

Applying for a refund from Air Canada? Tell us about it:Ask@cbc.ca.