Decision No. 70-C-A-2020

SUMMARY

[1] Dianne Joyce Leung filed an application with the Canadian Transportation Agency (Agency) against Delta regarding the CAD 1,296.27 she was charged to change the date of her flight from New York, USA, to Vancouver, British Columbia, via Seattle, USA, originally scheduled for March 24, 2019. Ms. Leung seeks compensation for this amount.

[2] The Agency will address the following issue:

Did Delta properly apply the terms and conditions set out in its Canadian General Rules Tariff No. CGR-1, NTA(A) No. 241 (Tariff) as required by subsection 110(4) of the Air Transportation Regulations, SOR/88‑58 (ATR)? If Delta did not properly apply the terms and conditions set out in its Tariff, what remedies, if any, should be ordered?

[3] For the reasons set out below, the Agency finds that Delta properly applied the terms and conditions set out in Rule 255 of its Tariff. The Agency, therefore, dismisses the application.

BACKGROUND

[4] Ms. Leung booked a round-trip ticket with Delta for CAD 605.23 to travel as follows:

• March 14, 2019: From Vancouver to New York via Toronto, Ontario;
• March 24, 2019: From New York to Vancouver via Seattle.

[5] The original ticket was purchased on January 23, 2019. On March 15, 2019, Ms. Leung’s husband, Mr. Leung, phoned Delta to inquire if Ms. Leung could travel to Vancouver the next day, March 16, 2019, as opposed to the originally scheduled return date of March 24, 2019. Delta rebooked Ms. Leung on a flight departing from New York on March 16, 2019. Two weeks after her arrival in Vancouver, Ms. Leung discovered the charge of CAD 1,296.87 for the rebooking on her credit card which she claims was not authorized.

THE LAW AND RELEVANT TARIFF PROVISIONS

[6] Subsection 110(4) of the ATR requires that an air carrier operating an international service properly apply the terms and conditions of carriage set out in its tariff.

[7] If the Agency finds that a carrier has failed to properly apply its tariff, section 113.1 of the ATR empowers the Agency to direct the carrier to:

a) take the corrective measures that the Agency considers appropriate; and

b) pay compensation for any expense incurred by a person adversely affected by its failure to apply the fares, rates, charges, or terms and conditions set out in the tariff.

[8] The relevant provisions of Delta’s Tariff are set out in the Appendix.

POSITIONS OF THE PARTIES AND FINDINGS OF FACT

Ms. Leung

[9] Ms. Leung alleges that when her husband telephoned Delta to request an earlier flight he was advised that such a change would involve a “minimum penalty” of CAD 200. She submits that Mr. Leung acknowledged and accepted this penalty. Ms. Leung also alleges that Delta first proposed a rebooking option with a cost of CAD 600 which Mr. Leung declined because it was too expensive. Ms. Leung claims that her husband then accepted a rebooking for the following morning, March 16, 2019, and provided her credit card information without being told the cost of the change.

[10] Ms. Leung claims that two weeks after she arrived in Vancouver she discovered a charge on her credit card from Delta for CAD 1,296.27 which she contends was not authorized and which she describes as unacceptable. She alleges that she complained to both Delta and her credit card company, but claims that she was ignored by Delta and was unable to come to an agreement with her credit card company.

Delta

[11] Delta asserts that when Mr. Leung telephoned to request an earlier flight he was advised of the fee to change the ticket before Delta collected the necessary credit card information. Delta claims that upon the change being made it immediately sent Mr. and Ms. Leung an e-mail confirmation with a receipt showing the ticket change and the fee collected.

[12] In an e-mail to Ms. Leung, which was filed by both parties, Delta indicates that Ms. Leung’s original ticket was non-refundable and that by changing the date of travel the ticket was upgraded to a higher fare class. Accordingly, Delta indicates that the ticket was reissued and both the change fee and the additional fare were collected.

Findings of fact

[13] The passenger ticket record filed by Ms. Leung and the contemporaneous business record evidence filed by Delta confirm that Ms. Leung’s original ticket was non‑refundable.

ANALYSIS AND DETERMINATIONS

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

[15] Ms. Leung admits that Mr. Leung accepted a rebooking for March 16, 2019, and provided credit card information without asking for the full cost of the new booking. This was an unfortunate oversight, as frequently the fare for transportation increases, sometimes significantly, the closer to the departure date that the booking is made. This is illustrated in the difference between the cost of the ticket purchased on January 23, 2019, and the cost of the new ticket purchased the day before the return travel.

[16] As a matter of contract law, a passenger remains bound by the terms and conditions of carriage and any incorporated fare rules once payment for a ticket has been provided. These terms remained in effect despite Mr. Leung not asking for the full cost of the new ticket prior to providing credit card information.

[17] Rule 255(I)(A)(1) of Delta’s Tariff sets out that, unless otherwise specified in the fare rule, a passenger may change the date of travel specified on an unused ticket in accordance with Rule 255(I)(A)(2). Rule 255(I)(A)(2) provides that the fares and charges applicable, when a rerouting is made at a passenger’s request prior to arrival at the ultimate destination named on the ticket, shall be the applicable fare and charges for the entire revised itinerary in effect on the date that the rerouting or change in ultimate destination is entered on the passenger’s new ticket. By changing the date of travel, Mr. Leung was purchasing a new ticket and he was charged the difference between the applicable fares and a change fee.

[18] Ms. Leung’s original ticket was non-refundable. Rule 255(II) regarding ticket reissue procedures provides that, for non-refundable fares, if the value of the new ticket is equal to or higher than the ticket being reissued, the change fee and any difference will be collected at the time of reissue.

[19] Contemporaneous business record evidence filed by Delta and Ms. Leung’s passenger ticket record show that the base fare for Ms. Leung’s new ticket, departing from New York on March 16, 2019, and purchased the day before departure, including taxes, was CAD 1,834.80. Her original ticket, purchased several weeks before her travel, cost CAD 605.23. Ms. Leung was charged CAD 1,296.27, the difference being attributable to the change fee and the remaining value of Ms. Leung’s original ticket.

[20] Consequently, the Agency finds that Delta properly applied the terms and conditions of carriage set out in Rule 255 of its Tariff when it charged the applicant the change fee and the difference between the new ticket and the original ticket, as required by subsection 110(4) of the ATR.

CONCLUSION

[21] The Agency dismisses the application.

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APPENDIX TO DECISION NO. 70-C-A-2020

Canadian General Rules Tariff No. CGR-1, NTA(A) No. 241

Rule 255DL REROUTING

I. General Provisions

A. FARE APPLICABLE TO REROUTING OR CHANGE IN DESTINATION

1) Unless otherwise specified in the fare rule, a passenger may change the routing, destination, carrier(s), class of service or date of travel specified on an unused ticket or flight coupon(s) in accordance with (2) below, provided that, after transportation has commenced, a one-way ticket will not be converted into a round-trip, circle-trip or open jaw trip ticket.

2) Except as otherwise provided in Rule 240 (Flight Delays / Cancellations), the fares and charges applicable, when a rerouting or change in ultimate destination is made at passenger’s request prior to arrival at the ultimate destination named on the original ticket, shall be the applicable fare and charges for the entire revised itinerary in effect on the date that the rerouting or change in ultimate destination is entered on the passenger’s new ticket.

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II. Ticket Reissue Procedures

Unless otherwise specified in a fare rule, the following procedures will apply to DL ticket reissues. The value of the new ticket can be lower than, equal to, or higher than the original ticket.

For non refundable fares:

- If the value of the new ticket is lower than the ticket being reissued, the difference in fare, less the change fee, will be provided to the passenger in the form of a non‑refundable Delta travel voucher at the time of reissue. If the value of the new ticket is equal to or higher than the ticket being reissued, the change fee and any difference will be collected at the time of reissue.

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