Wednesday, June 21, 2023

"Protecting your wallet against lost, delayed baggage more important than ever"/ "How to get compensated if your flight is cancelled in Canada"

Aug. 9, 2022 "Protecting your wallet against lost, delayed baggage more important than ever": Today I found this article by Leah Golob on BNN Bloomberg:


On July 8, Aaliyah Corbin landed at Toronto's Pearson International Airport after a fun and relaxing vacation with friends in Portugal. The good times quickly ended, however, when her luggage was nowhere to be found.

Instead, she discovered an airport employee had accidentally attached her bag tag to her friend’s luggage. Among the four friends she was travelling with, Corbin’s was the only bag lost. To make matters worse, this was the day that Rogers had a network outage, so it felt extra chaotic at the airport, the 26-year-old said.

“I was very emotional and very upset to walk into such a disorganized disaster. It felt overwhelming … All I could do was think about the belongings that were memorable to me.”

Reports about delayed and lost baggage have been making headlines alongside news of cancelled or postponed flights. Last month, an Ipsos poll conducted on behalf of Global News, revealed that 58 per cent of Canadians are avoiding airports until the situation improves and 70 per cent call the problems an embarrassment to Canada.

“There’s a lot of chaos around the world with regards to travelling as people are picking it up after a few years of not travelling,” said Natasha Macmillan, director of everyday banking at Ratehub.ca, an online platform that compares financial products. 

A credit card with delayed baggage insurance can help if your checked bag doesn’t arrive at your destination on schedule. 

You can be reimbursed for some or all of the costs of essential items, such as clothing and basic toiletries, that you need to purchase in the meantime, Macmillan said. 

You might also be eligible to be reimbursed for a certain amount of your personal belongings. Coverage varies between cards and can extend to a spouse and any depending children travelling with you.

Cardholders will want to read the terms and conditions of any credit card they choose carefully, because there can be exclusions such as losses when returning home to your province or territory or for unchecked luggage, Macmillan said, and certain items such as prescription glasses, sporting equipment and cameras may not be covered.

Since Canadians can buy travel insurance on their own, it’s worth weighing whether a credit card with these types of insurance is needed. 

According to Barry Choi, a personal finance and travel expert in Toronto, it all comes down to costs.

“A typical travel insurance policy that comes with medical and extended coverage — including delayed and lost baggage and trip delay insurance — can cost about $300 a year. This would cover you for an unlimited number of trips for about two weeks of consecutive travel at a time,” he said.

“Credit card travel insurance can offer similar polices while their annual fees may only be $120 to $250 a year. 

Now if you only travel once a year for a short period, it may be cheaper to just buy a separate travel insurance policy as needed.”

In Corbin’s case, she went with insurance through a travel agent. It covered up to $1,500 but since her luggage and belongings were worth closer to $2,500 she decided to wait for the airline rather than putting in a claim in the hope of recouping the full amount and more for the hassle.

Both Choi and Macmillan recommend the TD Aeroplan Visa Infinite card for those looking for a credit card with travel insurance. The annual fee is $139 per year, but it’s typically waived the first year, Choi said. The card also has Air Canada benefits, such as the ability to check your first bag for free.

Choi also recommended The American Express Gold Rewards Card, which has an annual fee of $250, and Macmillan suggested the American Express Cobalt Card, which has a monthly fee of $12.99. All of these cards allow users to collect points that can go toward travel.

Choi warns to keep in mind that there are specific conditions to qualify for credit card insurance. Usually, cards require that you charge a certain percentage, and sometimes the entire amount, of your flights for baggage insurance to apply. If you’re paying partially with points, the conditions might be even more strict.

It’s also important to note that getting a credit card with travel insurance doesn’t always mean you’ll get to bypass dealing with the airline. 

“Some credit card providers will only cover you for the portion of the replacement cost of lost personal property that is not paid by the common carrier or other insurance,” Macmillan said.

“So, while it’s a valuable insurance to have, it may not allow you to entirely avoid filing a claim with the common carrier.”

In a response to a request for comment about Corbin's case, a spokesperson for Air Transat said, “the operational issues currently affecting baggage handling service providers at several airports are unfortunately impacting some of our clients’ travel experience. Regarding this specific case, we are doing everything in our power to find the client’s luggage and sincerely apologize for the inconvenience. 

"We have sent all the information about her luggage, including photos, to both Lisbon and Toronto airports, which send us regular updates. We are also in contact with the client directly to inform her of available recourses.”

Shortly after The Canadian Press contacted Air Transat about Corbin's case, Corbin received a reply to an email she had sent inquiring about next steps. The email stated if she shared the contents of her bag, Air Transat would be “happy to compensate.” Since it’s been more than 30 days, she is entitled to claim the content of her baggage, though the airline tracing is still occurring and her baggage will be sent to her once it’s found.

Protecting your wallet against lost, delayed baggage more important than ever - BNN Bloomberg


Aug. 17, 2022 "How to get compensated if your flight is cancelled in Canada": Today I found this article by Hannah Logan on the Financial Post:


With COVID-19 restrictions easing up in Canada and abroad, many Canadians are excited to get back to travel. However, the return to summer vacations hasn’t been nearly as smooth as the travel industry and passengers had hoped.

Cancelled and delayed flights, lost baggage, and incredibly long wait times are some of the issues that Canadian travellers are experiencing this summer. Despite Canadian airlines reducing their summer flight schedule at the end of June, many travellers are still having trouble receiving compensation for travel disruptions. If that sounds like you, then here’s what you need to know to get compensated if your flight is cancelled in Canada.

Know your rights

Canadian travellers should familiarize themselves with the Air Passenger Protection Regulations (APPR), which were developed by the Canadian Transportation Agency (CTA) and came into effect in 2019. The APPR covers flights to, from, and within Canada, including connecting flights.

Situations where you may be eligible for filing a complaint include:

  • Flight delays and cancellations
  • Lost luggage
  • Lack of accessible transportation for disabled or elderly
  • Discrimination on the basis of race/religion/gender expression etc.

Should you be in a position where you need to request compensation or a refund from an airline, the first step is to go to the airline themselves. 

If the airline denies your claim, you can then file a complaint with the CTA. These claims do require a lot of paperwork so make sure to keep all documents related to your flight. 

This includes the original flight details (flight number, airline, date and time), and any official notification that your flight has been changed. 

It’s also handy to hold onto any receipts from food or accommodation that you needed to purchase as a result of the cancelled or delayed flight.

Under the APPR you have up to one year to make a claim (in writing) against the airline and the airline then has 30 days to respond by either issuing payment or explaining why compensation is not owed.

The APPR states that compensation is required for flight cancellations or significant delays that are “within the carrier’s control.” For example, for a flight delay of three to six hours, passengers on large airlines are entitled to compensation of $400 . If that delay extends to nine hours or more, passengers are entitled to $1,000.

Loopholes and amendments

However, one of the biggest issues airlines have this summer are crew shortages due to COVID-19. Many airlines are stating that this is beyond their control and as such passengers who have had their flights cancelled or delayed are not entitled to any compensation. This has resulted in a number of problems which have extended past the airlines and onto the CTA.

In an effort to fix this gap in regulations, the CTA has announced upcoming amendments to the APPR that will take effect Sept. 8, 2022. These new amendments will provide additional measures benefitting the passenger in situations that are considered outside the airline’s control.

Until this gap in regulations is bridged, many Canadians are finding themselves denied compensation. In these situations, travel insurance may come in handy. Additionally, travellers to Europe can take advantage of Regulation EC No 261/2004. Under this protective regulation, passengers are legally entitled to 250 to 600 Euros if they are denied boarding, bumped from their flight, have a delayed flight, or if the flight is cancelled.

All travellers should also be aware of the Montreal Convention 1999 (MC99). This treaty establishes airline liability in several cases including flight disruption and delay, damage, or loss of baggage and cargo. 

For your best chance at receiving compensation, make sure to keep all flight and luggage related documents. 

You should also take photographs of your suitcase to have on hand showing the brand and colour. 

If you have receipts for the items in your luggage, submit those with the claim since airlines will always undervalue. That being said, there is a maximum claim of US$1,700 so be mindful of checking any valuables.

MC99 is a universal treaty meant to govern airline liability worldwide, so it is only applicable to international flights between countries that are part of the treaty. 

Again, make your claim with the airline first and emphasize the Montreal Convention. If you still have problems receiving compensation, take the claim to the CTA.

More tips for requesting compensation from airlines

The regulations above help you better understand when you should receive compensation or a refund from the airline. However, travellers and airline employees have a few other suggestions to help with the process.

Be prepared

Some Canadians are lucky in that they learn about their flight delay or cancellation well in advance. However, there are many others who find out that their flight has been cancelled or disrupted right before their time of travel.

Since this is a possibility, it’s best to arrive at the airport prepared for worst-case scenarios. 

This means bringing cash, 

purchasing travel insurance, 

and downloading the airline app with your ticketing information. 

You might also want to consider a tracking device like AirTags in the case of lost baggage.

Be patient

Should you end up in a situation where you are seeking financial compensation, you’ll need to be patient. Erika Lange, who works in customer service for a Canadian airline, shares that generally speaking it should only take 30 days for travellers to receive their reimbursement.

However, each claim is assessed by a specialist based on the APPR criteria. Due to both COVID-19 and the increased volume in claims, it’s taking longer than normal.

Be kind

Cook had flights to Amsterdam to catch Ed Sheeran in concert in July but ended up being bumped off her flight back to Canada. She called Air Canada and nicely asked the assisting agent what had happened and how she could get back home. 

Mike, the airline agent, told them that the original flight was fully booked and asked if they had any flexibility in their return date. Sarah agreed to leave a day later than originally planned and was upgraded to business class as a thank you for her patience and willingness to be flexible.

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

How to get compensated if your flight is cancelled in | Financial Post


No comments: