FILE PHOTO: An Air Canada Airbus A320-200 airplane prepares to land at Vancouver's international airport in Richmond, British Columbia, Canada, February 5, 2019. REUTERS/Ben Nelms/File Photo
The U.S. Department of Transportation is seeking $25.6 million in fines from Air Canada for allegedly failing to provide timely refunds to U.S. customers after flights were canceled or significantly delayed, the agency announced on Tuesday.
The department’s Office of Aviation Consumer Protection said it received more than 6,000 complaints from consumers alleging Air Canada denied them refunds for flights that were canceled or delayed. In the complaint filed with an administrative law judge, the agency said it is seeking the civil penalty "for Air Canada’s extreme delays in providing the required refunds.”
The agency said the large penalty is "intended to deter Air Canada and other carriers from committing similar violations in the future.”
"When a carrier cancels or significantly changes a flight to or from the United States, the airline is responsible for providing refunds, upon request, according to U.S. law,” the agency said in a statement.
Airlines have seven days to refund passengers from the date of the request for flights purchased with a credit card and 20 days for flights purchased with cash, according to the agency.
Air Canada did not immediately respond to respond to a request for comment. The airline is required to file an answer to the complaint within 15 days, according to the Transportation Department.
