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News Release

Travel Way: Canada's Air Travel Complaints Commissioner Intervenes to Help Stranded Air Passengers

OTTAWA - December 19, 2002 - Canada's Air Travel Complaints Commissioner, Liette Lacroix Kenniff, has intervened to help stranded air passengers caught in the middle of an alleged fraud concerning a Toronto-area travel agency, Travel Way Services. Officials of that travel agency are alleged to have taken in $1.5 million for more than 700 tickets sold in October without remitting the money to the airlines involved, which include Air Canada, British Airways, BWIA-West Indies Airways and KLM / Northwest.

The tickets in question were purchased between October 14 and October 21, 2002, and to date Ms. Lacroix Kenniff's Office has received almost 100 complaints. Of the above four airlines, British Airways and BWIA agreed to accept all tickets issued by Travel Way.

Air Canada has agreed to protect seats reserved for Travel Way's customers, and to accept some of the tickets as issued, but not all. For other passengers, the carrier has offered to sell them replacement tickets at the best price currently available. Air Canada says it will then conduct an investigation of each ticket and, if the airline is satisfied that the passenger is an innocent victim, it will process a refund.

"This proposal is not as responsive to the consumer's needs as those of British Airways and BWIA. However, I am hopeful Air Canada will reconsider its position and honour all the tickets. I will continue to monitor the situation to ensure that passengers are treated fairly," Ms. Lacroix Kenniff said.

KLM / Northwest refuses to accept tickets issued by Travel Way, offering only to sell a replacement ticket at the lowest possible price with no hope of a future refund for the cost of the original ticket. Ms. Lacroix Kenniff's discussions with KLM / Northwest were not productive and, as a result, she referred the matter to the Canadian Transportation Agency. The Canadian Transportation Agency is a quasi-judicial administrative tribunal that regulates various modes of transportation under federal jurisdiction, including air, marine and rail.

"I believe KLM / Northwest's position unfairly shifts the financial burden of this unfortunate situation from the airline to individual consumers," Ms. Lacroix Kenniff stated. "These people bought their tickets in good faith from a duly licensed and accredited travel agent."

Ms. Lacroix Kenniff has been in contact with the carriers that are the subject of most of the complaints, as well as other organizations such as the Travel Industry Council of Ontario, the Toronto Police Service and the International Air Transport Association. She wants to find solutions that will protect consumers' interests.

Ms. Lacroix Kenniff invites all consumers who bought tickets from Travel Way that are not honoured by airlines to file complaints with her by mail to: The Air Travel Complaints Commissioner, c/o The Canadian Transportation Agency, Ottawa, ON, K1A 0N9; by fax at (819) 953-5686; or via the Internet at www.cta.gc.ca.

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For further information, please contact:

Jadrino Huot
Senior Communications Adviser
(819) 953-9957

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