Worried about an Air Canada pilot strike? Be careful about cancelling or rebooking your flights

A strike by Air Canada’s AC-T pilots could disrupt travel for hundreds of thousands of passengers in the coming weeks, but consumers may regret rushing to cancel or rebook their flights ahead of any potential work stoppage, experts say.

Air Canada said on Sept. 9 it is preparing to suspend most of its operations as negotiations with its pilots union remain at a standstill. Sept. 18 is the earliest a strike or lockout could begin, with flight cancellations possible as soon as Sept. 13 for some international destinations, the carrier said.

The airline is allowing passengers who might be affected to rebook their flights free of charge within certain dates and awarding travel credits for those who cancel non-refundable fares. But consumers should keep in mind that by doing so they might forfeit some of their travel insurance coverage and rights to refunds or compensation under air passenger protection rules, insurance experts and consumer advocates warn.

Trip interruption and cancellation insurance covers a variety of unforeseen travel disruptions, including those arising from work stoppages, said Martin Firestone, president of Toronto-based insurance brokerage Travel Secure.

Coverage usually includes compensation for anything from extra hotel nights while you’re stranded away from home to the cost of a cruise you missed because of a flight cancellation, Mr. Martin said.

While some insurers started excluding an Air Canada labour disruption from coverage under new policies in mid-August, others continued to provide it until Air Canada warned on Sept. 9 it was preparing for a possible shutdown, Mr. Firestone said.

Still, no insurer will reimburse passengers for extra costs incurred because they rearranged their travel plans on their own, he added. Travellers must wait until their flights are cancelled to be eligible for coverage, he said.

The same holds for any trip interruption and cancellation coverage Canadians might get through their credit card insurance, said Barry Choi, a personal finance and travel expert.

Cancelling or rebooking flights on your own will also make you ineligible for protections afforded to consumers under air passenger protections rules in case of travel disruptions.

For example, airlines are fully within their right to provide travel credits, rather than a cash refund, to travellers who cancel non-refundable bookings, said Gabor Lukacs, president of consumer advocacy group Air Passenger Rights.

“They want passengers to cancel first because then they can avoid paying passengers compensation,” he said.

On the other hand, if a carrier cancels a flight during a strike, passengers would be entitled to choose between two options under Canada’s Air Passenger Protection Regulations, according to Mr. Lukacs.

If they want to continue with their travel plans, they have a right to a free rebooking, including on flights operated by other airlines, or they can opt for a refund. Consumers who chose the latter and have already started their trip are also entitled to a flight home if the disruption has compromised the purpose of their travel.

Those journeying outside Canada may also be entitled to additional compensation under international air travel rules, Mr. Lukacs said.

Passengers should also pay attention to whether the airline cancelled the flight after a strike has begun, or in the days leading up to it, he said.

Mr. Lukacs argues that any flight cancellations airlines implement in preparation for a strike constitute travel disruptions that should be deemed to be under the carrier’s control, according to Canada’s air passenger rules.

Under such a categorization affected passengers might be entitled to cash compensation as well as reimbursement for meals and overnight accommodation, among other things. Air Passenger Rights has brought the matter before the Supreme Court of British Columbia in a case involving WestJet, Mr. Lukacs said.

For now, Air Canada is operating flights as scheduled and has said its operations have not been affected.

The airline has been in talks with the Air Line Pilots Association, which represents 5,200 member at Air Canada and its low-cost subsidiary, Air Canada Rouge, for more than a year.

Air Canada Express carriers Jazz and PAL Airlines are not part of the current negotiations.

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