Decision No. 3-C-A-2022

January 7, 2022

APPLICATION by Muhammad Islam against Oman Air, pursuant to subsection 110(4) of the Air Transportation Regulations, SOR/88-58 (ATR), regarding compliance with an order to refund.

Case number: 
21-04431

[1] Muhammad Islam held a round-trip ticket to travel on March 5, 2019, from Islamabad, Pakistan, to Toronto, Ontario, via Muscat, Oman, and London, United Kingdom, arriving in Toronto on March 6, 2019. Following the carrier’s refusal to transport Mr. Islam on his connecting flight from Muscat to London on March 6, 2019, he purchased a replacement ticket from Muscat to Toronto, via London, for CAD 548.88.

[2] In Decision No. 109-C-A-2020 (Decision), dated December 9, 2020, the Agency considered whether Oman Air properly applied the terms and conditions set out in its International Passenger Rules and Fares Tariff No. WY-1 Containing Local and Joint Rules, Fares and Charges on Behalf of Oman Air (SAOC) Applicable to the Transportation of Passengers and Baggage Between Points in Canada and Points in Area 2, NTA(A) No. 560 (Tariff). The relevant provisions of the Tariff are set out in the Appendix. An erratum, dated December 6, 2021, was subsequently issued, correcting an error that misidentified the specifically applicable Tariff rule.

[3] Subsection 27(1) of the Canada Transportation Act, SC 1996, c 10 (CTA) allows the Agency to “make any order or grant any further or other relief that to the Agency considers appropriate”.

[4] In the Decision, the Agency found that Oman Air properly applied the terms and conditions set out in Rule 25(A) of its Tariff with respect to its refusal to transport Mr. Islam. However, the Agency also found that Oman Air failed to properly apply the terms and conditions set out in Rules 25(H) and 90(B)(2)(b) of its Tariff when it did not reimburse Mr. Islam the unused portion of his ticket. The Agency ordered Oman Air, pursuant to section 113.1 of the ATR, to:

  • refund Mr. Islam the residual amount, if any, of the unused portion of the ticket for travel on March 6, 2019, as per Rules 25(H) and 90(B)(2)(b) of its Tariff;
  • provide Mr. Islam and the Agency with a detailed summary of how the amount was calculated; and
  • notify the Agency once the refund of the unused portion of the ticket has been tendered to Mr. Islam, to be done as soon as possible and no later than January 25, 2021.

[5] Following issuance of the order, Oman Air informed Mr. Islam that there was no residual value to refund, stating that Mr. Islam’s ticket was reissued and used for his replacement flight as per the Virtual Coupon Record. Oman Air also stated that the one-way fare had a greater value than the return ticket. Eventually, Oman Air offered to refund the unused taxes, in the amount of CAD 101.69.

[6] Oman Air did not provide a detailed summary of its calculations as ordered by the Agency in its Decision. Furthermore, there was no supporting evidence to explain how Rules 25(H) and 90(B)(2)(b) of the Tariff were applied. The Agency is not satisfied that the refund proposed by Oman Air was calculated according to Rule 90(B)(2)(b) of its Tariff, and, therefore, finds that Oman Air failed to comply with the order.

[7] In light of the above, it would not be just and appropriate for the Agency to speculate about the refund amount that Mr. Islam is entitled to based on Rule 90(B)(2)(b) of the Tariff. Consequently, the Agency finds that, on a balance of probabilities, Mr. Islam has established that the value of the replacement ticket is reasonable in this case.

ORDER

[8] Accordingly, pursuant to subsection 27(1) of the CTA, the Agency orders Oman Air to compensate Mr. Islam in the amount of CAD 548.88, as soon as possible and no later than February 18, 2022.


APPENDIX TO DECISION NO. 3-C-A-2022

International Passenger Rules and Fares Tariff No. WY-1 Containing Local and Joint Rules, Fares and Charges on Behalf of Oman Air (SAOC) Applicable to the Transportation of Passengers and Baggage Between Points in Canada and Points in Area 2, NTA(A) No. 560

RULE 25 – REFUSAL TO TRANSPORT

WY may refuse to transport any passenger, and may remove any passenger from its aircraft at any time, for any of the following reasons:

(A) Government request or regulations

Whenever such action is necessary to comply with any government regulations, directives or instructions; or to comply with any governmental request for emergency transportation in connection with the national defense, or whenever such action is necessary or advisable by reason of weather or other conditions beyond its control (including but without limitation, acts of God, force majeure, strikes, civil commotions, embargoes, wars, hostilities or disturbances) actual, threatened or reported.

….

(H) Recourse of passenger

All passengers are prohibited from engaging in any conduct that would authorize WY to refuse transport under this Rule. The sole recourse of any person refused carriage or removed en route for any reason specified in this Rule shall be recovery of the refund value of the unused portion of his or her ticket as provided in Rule 90(B).

RULE 90 – REFUNDS

….
(B) Involuntary refunds

The amount the carrier will refund upon surrender of the unused portion of the passenger’s ticket pursuant to Rule 25 (Refusal to transport) or Rule 80 (Flight delays/cancellations) will be:

….
(2) If a portion of the ticket has been used and termination/interruption occurs:

….
(b) Within a fare component – The refund will be an amount equal to the carrier’s published one way fare for the same class of service or 50 percent of the published comparable roundtrip fare, from the point of termination/interruption to the destination or next stopover point named on the ticket, or to the point at which transportation is to be resumed. If the carrier does not publish comparable fares between such points, the refund will be an amount equal to any carrier’s direct one way unrestricted fare, less the same rate of discount that was applied in computing the original fare….

Member(s)

J. Mark MacKeigan
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