After a huge public outcry, and in an effort to drum up sales and to generate revenue, Air Canada seems to have copied the strategy of Qatar Airways to offer generous rebooking options guised as refunds.
However this move by Air Canada falls short – and if you read the fine print, it shortchanges the passengers. I am referring specifically to the option where you can convert the value of your commercial fare into Aeroplan miles.
I am referring to:
Aeroplan Miles – Convert and transfer the remaining value of all tickets and associated services in a booking, minus any taxes, into Aeroplan Miles, and get an additional 65% bonus miles.
So its not the full amount you paid – its only the base fare and it can be quite a bit depending on the sector. Lets have a look below.
Even before we discuss that, note how complicated it is with the dates.
A. For bookings that are cancelled on or after June 1, 2020 and for travel after March 1, 2020, you will be able to immediately access the new cancellation options including the Air Canada Travel Voucher and Aeroplan Miles.
B. For bookings cancelled prior to June 1, 2020 and for travel after March 1, 2020, you will be able to access our new cancellation options as of June 15, 2020.
C. If you have a booking cancelled by Air Canada for travel prior to March 1, 2020, there are different rules.
However, the fine print of “minus any taxes” is where they get you.
And it will impact you more if the province you are in, or that of your address on your Aeroplan account is in a province where the sales tax is high.
So, if you are in Ontario where the GST is 13% and if a ticket you are refunding was say $1000, then the amount of Aeroplan miles you would get back is on the amount you would have paid and not on the GST to get it.
i.e. 1000/1.13 = $884.
Meaning if you purchased Aeroplan miles for $884 you would have paid 13% taxes on that. So the aeroplan points you will get is on the amount of $884 at 3cpp and then a 65% bonus on that. (All figures rounded up).
So, be forewarned thats its not a 100% “refund”. Be wary of all these “refund” options and always insist on nothing less than a refund to the original form of payment.
If you need any specific information to assist you in your attempt to obtain a refund, feel free to join the facebook group Air Passenger Rights (Canada).
Stay safe and keep the money in your wallet.
Written by Dominic Fernandes aka CanadaPointsGuy.
Image Photo by Jack Hodges on Unsplash
Thanks for this. Do you know if the new voucher format will return funds if we later decide to cancel again?
AC has not explicitly said this for rebookings – but this flexibility is limited to all new or existing bookings made through June 30, 2020 for original travel between March 1, 2020 and June 30, 2021.
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