Decision No. 66-C-A-2019

SUMMARY

[1] In Decision No. 37-C-A-2019, the Canadian Transportation Agency (Agency) determined that, when Air Canada refused to transport Mrs. Lyell from Mexico City, Mexico, to Toronto, Ontario, on March 12, 2017, it properly applied the terms and conditions related to refusal to transport set out in Rules 75 and 100 of its International Passenger Rules and Fares Tariff, NTA(A) No. 458 (Tariff), as required by subsection 110(4) of the Air Transportation Regulations, SOR/88-58, as amended (ATR). However, the Agency also directed Air Canada to demonstrate that it complied with the terms and conditions of its Tariff in calculating the exchange value of the original tickets when the replacement tickets were purchased by the applicants.

[2] Air Canada provided a clear and satisfactory explanation of how it calculated the value of the original unused tickets. The Agency, therefore, finds that Air Canada applied the exchange value of the original tickets to the purchase of the replacement tickets in accordance with its Tariff. The application is dismissed.

THE LAW AND RELEVANT TARIFF PROVISIONS

Rule 85 of the Tariff states :

RULE 85 – VOLUNTARY CHANGES AND REROUTING

A. When change can be made at the passenger’s request and subject to payment of any fee set out in applicable fare rule, carrier will effect a change in the routing (other than the point of origin), destination carrier(s), class of service, flight coupon(s), travel dates, or will cancel a reservation provided that such carrier issued the ticket.

B. Method of effecting change the change requested by the passenger shall be effected by:

(1) Endorsement or coupon control of such unused ticket or flight coupon(s) or,
(2) Reticketing of the passenger.

C. Applicable fare

(1)  The fare, fees, charges and surcharges applicable as a result of any such change in routing, destination, or carrier shall be the new fare, taxes, fees, charges and surcharges available at the time the change is made, plus applicable change fee or penalty, per applicable fare rule provided that:

1. 1. Additional passage at the through fare shall not be permitted unless request has been made prior to arrival at the destination named on the original ticket and
   2. After the carriage has commenced, a one way ticket shall not be converted into a round trip or circle trip ticket at the round trip or circle trip discount for any portion already flown; and
   3. After carriage has commenced a round trip ticket can be converted into a circle trip ticket, or vice versa provided that request is made prior to the passenger’s arrival at the destination named on the original ticket or miscellaneous charges order.

(2) Any difference between the fare, taxes, fees, charges and surcharges applicable under subparagraph (a) above, and the fare, taxes, fees, charges and surcharges paid by the passenger will be collected from the passenger by the carrier accomplishing the rerouting, who will also refund any amount per refund RULE 100 - REFUNDS.

D. Expiration date
     The expiration date of any new ticket issued will be the same as the expiration date of the old ticket.

E. Time limits on cancellations and charges for late cancellations will be applicable to revised routings requested by passenger.

POSITIONS OF THE PARTIES

Air Canada

[3] Air Canada clarified that the value of the applicants’ original tickets was applied to their replacement tickets in accordance with Rule 85 – VOLUNTARY CHANGES AND REROUTING, which allows Air Canada to change to an itinerary at the passenger’s request, subject to the applicable change fee or penalty.

[4] According to Air Canada, the applicants purchased non-refundable tickets for transportation on March 12, 2017, at a total cost of CAD 277.12 per ticket. This price represents a fare of USD 100 plus the applicable taxes. Air Canada’s fare rules allow changes to be made at a cost of USD 75 per ticket. When Mrs. Lyell was refused transportation in Mexico City, Air Canada applied the value of the applicants’ original tickets—USD 100 per ticket—towards the cost of the replacement tickets and charged a change fee of USD 75 per ticket.

[5] Air Canada indicates that the new fare was USD 318 per ticket. After the exchange value of the original tickets was applied, the applicants were charged USD 218 per ticket for the replacement tickets. There was no difference in taxes because the applicants travelled the same route as set out in their original itinerary.

[6] All charges were converted from US Dollars into Mexican Pesos when the applicants purchased their replacement tickets.

The applicants

[7] In response, the applicants maintain that Air Canada did not adjust the cost of their trip to reflect the difference in price between their original tickets and replacement tickets. They refer to the bank statement that indicates that they paid CAD 843.57 for the two replacement tickets. The applicants submit that they should not have to pay for their original flights as well as their replacement flights.

ANALYSIS

[8] Three currencies are involved in the applicants’ purchase of their replacement tickets: the original costs were calculated in US Dollars. The applicants were charged ticket prices and change fees in Mexican Pesos. They paid these amounts using a credit card, which converted the costs into Canadian Dollars at the exchange rate of 0.070546 at the time of the statement (March 2017).

[9] The Agency accepts Air Canada’s evidence that it applied an exchange value of USD 100 for each original ticket towards the cost of the replacement tickets, and that there was no difference in the taxes charged per ticket.

[10] The Passenger Name Record and replacement tickets provided by Air Canada confirm that MXN 4,492 (USD 218) was charged per replacement ticket for a total of MXN 8,984 (USD 436). The applicants’ credit card statement confirms this charge, for a total of CAD 633.79 (MXN 8,984).

[11] The Passenger Name Record and Airport fee receipts provided by the applicants show that a change fee of MXN 1,485 per ticket was paid. Two charges of $104.89 (MXN 1,485) on the applicant’s credit card statement reflect these change fees.

[12] Therefore, the Agency finds that Air Canada has demonstrated that it complied with the terms and conditions of Rule 85 of its Tariff in calculating the exchange value of the unused portion of the original tickets and the change fee when the replacement tickets were purchased by the applicants.

CONCLUSION

[13] The Agency dismisses the application.