Judge orders Air Canada to pay passengers $10M in damages in class action

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MONTREAL — The Quebec Court of Appeal has ordered Air Canada to pay passengers more than $10 million in damages in a class-action lawsuit that alleged they were charged more than the ticket price advertised.

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In a ruling Tuesday, Justice Judith Harvie wrote that Air Canada showed “ignorance and laxity” when the airline concluded it was exempt from a provincial Consumer Protection Act provision because air transport generally falls under federal jurisdiction.

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“The fault is serious, deliberate and affects a significant number of consumers,” the decision states in French.

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“Air Canada preferred its own commercial interests, which demonstrates recklessness and serious negligence towards consumers. It is necessary to award punitive damages to denounce this behaviour.”

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It overturns a lower court decision that found Air Canada had breached the law but that no harm resulted, eliminating the need for damages.

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The 15-year-old case was brought forward by a consumer advocacy group and Montreal resident Michael Silas who said the airline did not include all extra fees, such a fuel surcharge, in the price listed online, violating a consumer protection law passed weeks before his ticket purchase in 2010.

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Silas said he was charged $124 more in taxes, fees and surcharges than the fare price shown during the first step of the ticket-buying process on Air Canada’s website.

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In their initial claim, the plaintiffs argued the airline undermined customers’ ability to make informed choices and had to reimburse sums that were charged above the advertised price, not including taxes.

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The judge said Air Canada “no longer disputes” that it breached provincial law, while adding that “the evidence does not demonstrate that a specific consumer was misled.”

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Air Canada said it is reviewing whether to try to appeal this week’s decision.

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Spokesman Peter Fitzpatrick said the ruling is based mainly on a difference of interpretation over the meaning and “interaction of federal and provincial laws” before February 2012, since clarified by case law.

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“The circumstances that gave rise to the decision therefore have not existed since 2012,” he said in an email.

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The appeal court ruling comes amid a debate about whether growing airline charges and fare classes amount to so-called junk fees or offer greater choice for travellers.

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In January, Air Canada began to charge its lowest-tier customers a fee on trips within North America and to sun destinations to check duffel bags, rolling suitcases and large backpacks — $35 for the first, $50 for the second. Those luggage types are no longer allowed in the overhead bin for travellers in the “basic” fare class.

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The moves mark a shift toward a budget airline-style offering from the country’s largest carrier, which along with rivals has relied increasingly on ancillary fees for formerly bundled services that range from checked bags to onboard snacks and Wi-Fi access.