The US Department of Transportation plans to impose a fine on Air Canada of $25.5 million for ‘extreme delays’ in refunding customers for cancelled trips.
The DOT’s Office of Aviation Consumer Protection filed a complaint against the airline and said it impacts thousands of customers.
The DOT warned airlines a year ago over timely dispersal of refunds but gave them some leeway due to the financial hit airlines were suffering.
However, it says Air Canada has flouted US law for more than a year with some now waiting 13 months for a refund.
Air Canada has 15 days to respond and has already said it will fight the complaint which is says ‘has no merit.’
The airline says it has refunded more than $1.2 billion to customers, including some from the US.
Air Canada has long faced complaints in Canada for long delays in refunding customers and only secured a billion-dollar government bailout on the condition it refunded all customers.
