Refunds Could Cause Canadian Airlines to Fail: Trudeau Government

Canadian airlines “could fail” if forced to give refunds for cancelled flights due to COVID-19, Canada’s Transport Minister says.

Speaking at a press conference in Ottawa on Friday, Minister Marc Garneau delivered his strongest comments yet – and the strongest by anyone in the Trudeau government – on airline refunds. The issue of offering vouchers instead of refunds has captured headlines across Canada the past couple months and sparked heated, and often angry, debatesS

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"I have said many times that I have enormous sympathy for those who would have preferred to have a cash refund in these difficult circumstances. It is far from being an ideal situation," Garneau said on Friday.

"At the same time, if airlines had to immediately reimburse all cancelled tickets, it would have a devastating effect on the air sector, which has been reeling since the COVID 19 pandemic started."

Garneau said the government of Canada has a responsibility to help Canadian airlines survive the worldwide coronavirus crisis.

"It is so essential for this country," he said. "This is the second largest country on Earth, with its distances and remote areas, and we expect and need an airline industry in this country."

Trudeau a few days ago said the government has to balance the interests of airlines with the public’s desire for refunds. But Garneau’s comments are far stronger and clearly come down on the side of Canada’s aviation industry.

Trudeau addressed the issue again today in his regular appearance outside Rideau Cottage in Ottawa, the CBC reports.

"I hear clearly the concerns that Canadians have around their air tickets," the Prime Minister said. "We will continue to work with the industry and with concerned groups of Canadians to ensure that we find a fair way through this.

"But I know Canadians at the same time want to make sure we continue to have an airline industry after this very difficult pandemic."