Decision No. 20-C-A-2021

SUMMARY

[1] Lisa White filed an application with the Canadian Transportation Agency (Agency) against WestJet regarding changes to a reservation, refunds and cancellation of a reservation.

[2] The Agency will address the following issue:

Did WestJet properly apply the terms and conditions set out in its Local Domestic Tariff (Tariff), relating to changes to a reservation, refunds and cancellation of a reservation, as required by subsection 67(3) of the CTA?

[3] For the reasons set out below, the Agency finds that WestJet properly applied the terms and conditions set out in Rules 40(C) and 40(E) of its Tariff. Consequently, the Agency dismisses the application.

BACKGROUND

[4] Ms. White purchased a round-trip ticket with WestJet departing on August 12, 2019, from Edmonton, Alberta, to Winnipeg, Manitoba, and returning on August 18, 2019.

[5] Ms. White attempted to change her reservation with WestJet to depart on August 10, 2019, but was unable to do so given that she had purchased a “Basic” fare ticket. She therefore purchased a new ticket to travel on August 10, 2019.

[6] Ms. White did not inform WestJet that she would not be travelling on the outbound flight of her original ticket or that she intended to use the return portion of the ticket.

[7] On August 18, 2019, Ms. White attempted to check in for the return portion of her original ticket, but learned that her entire reservation had been cancelled since she did not show up for her flight on August 12, 2019. Ms. White then purchased another return ticket to Edmonton for CAD 493.63.

[8] Ms. White seeks reimbursement in the amount of CAD 600 broken down as follows: CAD 100 for the return portion of her original ticket and CAD 500 for the additional ticket she had to purchase to return to Edmonton.

THE LAW AND RELEVANT TARIFF PROVISIONS

[9] Subsection 67(3) of the CTA requires the carrier to apply its tariff:

The holder of a domestic licence shall not apply any fare, rate, charge or term or condition of carriage applicable to the domestic service it offers unless the fare, rate, charge, term or condition is set out in a tariff that has been published or displayed under subsection (1) and is in effect.

[10] Section 67.1 of the CTA sets out the available remedies if the Agency finds that the carrier did not properly apply its tariff:

If, on complaint in writing to the Agency by any person, the Agency finds that, contrary to subsection 67(3), the holder of a domestic licence has applied a fare, rate, charge or term or condition of carriage applicable to the domestic service it offers that is not set out in its tariffs, the Agency may order the licensee to

1. 1. apply a fare, rate, charge or term or condition of carriage that is set out in its tariffs;
   2. compensate any person adversely affected for any expenses they incurred as a result of the licensee’s failure to apply a fare, rate, charge or term or condition of carriage that was set out in its tariffs; and
   3. take any other appropriate corrective measures.

[11] The relevant provisions of the Tariff are set out in the Appendix.

POSITIONS OF THE PARTIES AND FINDING OF FACT

Ms. White

[12] Ms. White submits that the return portion of her original ticket was cancelled without WestJet informing her or asking her if she intended to use the ticket.

[13] Ms. White argues that she paid for seats on both the outbound and the inbound flights and that she should be entitled to those seats regardless of whether she shows up for a flight.

[14] Ms. White adds that cancelling a reservation if a passenger does not show up for a portion of the itinerary should be illegal. She argues that this is a poor industry practice that should be outlawed and that legislation should be put in place to ensure that passengers are guaranteed to have access to the seats for which they paid.

WestJet

[15] WestJet submits that Ms. White was unable to change her original reservation because she purchased a “Basic” fare ticket. WestJet states that the terms and conditions of the “Basic” fare do not allow changes to be made to a reservation more than 24 hours after booking and that all tickets purchased under the “Basic” fare are non-refundable. Therefore, if an itinerary change is required, a new ticket must be purchased, and the passenger is not entitled to a refund of the original ticket.

[16] WestJet adds that Ms. White would have agreed to the terms and conditions associated with a “Basic” fare because she booked her original ticket herself. It explains that the “Econo” fare, which permits changes, is automatically selected as the default fare when booking online and that to purchase the “Basic” fare, the passenger must unselect the “Econo” fare. WestJet further explains that the passenger must explicitly agree to the “Basic” fare’s terms and conditions, which indicate that flight changes or cancellations after 24 hours of booking are not available and that:

By choosing the Basic fare, I understand that I cannot:

• • change or cancel my booking without a total loss of funds…. [emphasis in original]

[17] WestJet provided copies of the dialog boxes that show up during the online booking’s fare selection process. These dialog boxes require an acknowledgement from the passenger of the above terms and conditions, in order to continue with a “Basic” fare booking. Passengers are given the option to either agree to these terms and conditions or return to the “Econo” fare, which permits flight changes or cancellations after 24 hours of booking for a fee.

[18] WestJet further submits that, since Ms. White did not show up for her flight on August 12, 2019, her entire reservation was cancelled. In this regard, WestJet states that its terms and conditions, along with its Tariff, inform passengers that if they do not show up for their flight, their entire remaining reservation will be cancelled.

[19] WestJet states that an exception to retain the return flight could have been granted to Ms. White if she had informed one of its agents that she still required her return flight but would not be travelling on her original flight. However, it was not given the opportunity to grant an exception.

[20] WestJet adds that its “Basic” fare is its most competitively priced and most restrictive fare. It can offer this low fare because it does not include added services, such as itinerary changes.

Finding of fact

[21] Both parties agree that Ms. White’s reservation was cancelled after she did not show up for her flight on August 12, 2019.

ANALYSIS AND DETERMINATIONS

[22] The onus is on the applicant to establish, on a balance of probabilities, that the carrier failed to properly apply the terms and conditions of carriage set out in its tariff.

[23] Ms. White purchased a “Basic” fare ticket, which, according to Rule 40(C) of WestJet’s Tariff, does not permit reservation changes or cancellations and is non-refundable. The Agency therefore finds that WestJet properly applied its Tariff when it did not allow Ms. White to modify her reservation.

[24] The Agency further finds that WestJet properly applied Rule 40(E) of its Tariff when it cancelled Ms. White’s reservation after she did not show up for her flight on August 12, 2019.

[25] In accordance with Rules 40(C) and 40(E), Ms. White is not entitled to a refund for the return portion of her original itinerary or the reimbursement of the cost of the new ticket that she had to purchase because her original “Basic” fare ticket was cancelled.

CONCLUSION

[26] In light of the above, the Agency finds that WestJet properly applied the terms and conditions set out in Rules 40(C) and 40(E) of its Tariff relating to changes to a reservation, refunds and cancellation of a reservation. Therefore, the Agency dismisses the application.

---

APPENDIX TO DECISION NO. 20-C-A-2021

Local Domestic Tariff

RULE 40 – RESERVATIONS

(C) Changes and cancellation of reservations

(4) Guests cancelling a reservation

...

The chart found in the Tariff states in part:

	Basic
Cancel within 24 hours of booking (excluding flights departing within 24 hours)	$0
Cancel for travel departing in more than 60 days	Non-Refundable, no changes are permitted, any unused ticket amount is not available for future travel credit.
Cancel for travel departing within 60 days and same-day flight changes at check-in	Non-Refundable, no changes are permitted, any unused ticket amount is not available for future travel credit.
Cancellations (balance refunded to original form of payment)	Not Available and any unused ticket amount is not available for future travel credit.

(iii) For a Basic fare will not be eligible for a refund through Travel Bank or original form of payment for Reservations made after 24 hours of booking. The Basic fare, taxes and fees are nonrefundable.

...

(E) Failure to occupy seat If the Guest does not occupy space which has been reserved by/for him/her and the Carrier is not notified of the cancellation of such Reservation up to and until the scheduled departure of that particular Flight, the Carrier will cancel all continuing or return Reservations held by the Guest and will not be liable for doing so other than to refund the Guest’s Ticket in accordance with the applicable Fare rule.

...