Ottawa says federal support for airline industry contingent on refunding customers

New federal support for Canada's pandemic-battered airline industry will be contingent on carriers providing refunds to passengers whose flights were cancelled, the government announced on Sunday. Transport Minister Marc Garneau laid out the requirement as he announced that Ottawa is ready to respond to the sector's desperate pleas for federal assistance by launching talks later this week. Canada's commercial airlines have been hit hard by COVID-19, with passenger levels down as much as 90% thanks to a combination of travel restrictions and fear of catching the illness. That has prompted airlines to furlough hundreds of pilots and technicians and discontinue dozens of regional routes since March. They have also cancelled numerous pre-booked trips, offering passengers credits or vouchers instead of refunds. Many Canadians have since expressed anger over not getting their money back. The Canadian Transportation Agency received 8,000 complaints between mid-March and the end of August, most of which are believed to be related to refunds. Passengers have also filed a handful of proposed class-action lawsuits and three petitions garnering more than 100,000 signatures that call for customer reimbursement. Garneau acknowledged the challenges facing the sector as he revealed the pending talks. "The air sector cannot respond to these challenges on its own, given the unprecedented impacts on its operations," Garneau said. "We are ready to establish a process with major airlines regarding financial assistance which could include loans and potentially other support to secure important results for Canadians... We anticipate beginning discussions with them this week." Yet Garneau also made clear what the government would be demanding from airlines, starting with refunds of what is believed to be millions of dollars in prepaid flight tickets and a curb on cancelled routes."<br/>