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Canadian airlines feel the pressure of flight-shaming and the 'Greta effect' – CTV News

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MONTREAL —
Swedish may not be the lingua franca of the aviation world, but ask any airline executive about the term “flygskam” and they’ll likely know exactly what it means.

Flygskam — Swedish for “flight shame” — is a growing environmental movement that highlights the flight sector’s carbon footprint, putting pressure on Canadian carriers to reduce greenhouse gas emissions while managing the cost of passenger guilt.

“It does seem like a switch has flipped,” says airline expert Seth Kaplan.

“For a while, there was this very incremental recognition of the urgency (of climate change), and then over the past year or so all this has really gotten into the spotlight — aided by Greta Thunberg.”

The Swedish teenage activist, who travelled by racing yacht to a climate summit in New York to avoid flying and its attendant emissions, has focused attention on aviation’s role in global warming, with consequences for travel companies.

The CEO of SAS, one of Scandinavia’s largest carriers, has attributed declining passenger numbers in Sweden to flight shaming. Meanwhile the country’s main train operator, SJ, said it sold 1.5 million more tickets in 2018 than the previous year, thanks to what’s been dubbed the “Greta effect.”

Other European countries are experiencing the same phenomenon. Germany saw a similar decline in domestic flights in 2018, along with a corresponding increase in rail travel.

To combat this trend, airlines are turning to carbon offsets, where they invest in projects such as wind farms and tree planting to compensate for plane-produced carbon dioxide.

Such measures could cost airlines billions, Citigroup Inc. said in a research note last October. The banking conglomerate forecasts that carbon offsetting economy-class flights will cost US$3.8 billion per year within five years.

Carriers could absorb the expense or pass it along to consumers via a higher ticket price, but airlines will struggle in the long run if increased costs deter travellers from flying, Citi said.

If airlines foot the bill themselves, “the cost of carbon offsetting all leisure consumption could be as much as 27 per cent of airlines’ profits by 2025,” wrote analyst Mark Manduca.

Offsetting corporate travel — which Citi defined as business-class seats — will cost another $2.4 billion, reducing airline profits by a further 17 per cent, the report said.

Commercial aviation accounts for about two per cent of global carbon emissions — a far smaller share than that of cars (estimates range between about 15 per cent and 20 per cent) or coal-generated power (30 per cent). “But it emits carbon in a very visible way,” Kaplan said.

“You look up in the sky and you see airplanes flying.”

In Europe, where the European Commission has called for a climate-neutral Europe by 2050, airlines have taken big steps in response.

EasyJet announced in November it would begin to offset emissions immediately, a move that they claim makes them the first major airline to operate net-zero carbon flights.

British Airways followed suit and began offsetting all flights within the United Kingdom as of Jan. 1

New York-based JetBlue unveiled plans to go carbon-neutral on all domestic flights starting in July, the first major U.S. carrier to do so.

Canadian airlines have also made efforts to reduce their carbon footprints, albeit less ambitious ones than their European counterparts.

“Using fuel-efficient aircraft is our best hedge against rising fuel costs and improves our carbon footprint,” WestJet Airlines Ltd. spokeswoman Lauren Stewart said in an email. “We are proud to have one of the youngest and most fuel-efficient fleets in North America.”

Air Canada has committed to carbon-neutral growth starting this year, meaning Canada’s biggest airline plans to cap net emissions, regardless of expansion.

Other efforts by the airline include more fuel-efficient aircraft and biofuel investment, said spokesman Peter Fitzpatrick.

However, the proliferation of budget carriers and a robust tourism sector is resulting in more emissions even as aircraft become increasingly fuel efficient.

A recent study by the International Council on Clean Transportation found that airplane emissions are increasing as much as 50 per cent faster than forecast by the United Nations, whose aviation body predicts aircraft fuel consumption will more than double by 2045.

Europe’s keen awareness and aggressive efforts around climate change may justify a little “tagskryt” — “train-boasting” in Swedish — but travellers on a densely populated continent have a built-in advantage.

“There’s no high-speed rail network here like there is in Europe. The cities are not as closely located as they are in Europe or in Japan. And if I have to go to meetings in Montreal or the West Coast of the United States, flying is my only option due to time and cost concerns,” said Brandon Graver, the Washington D.C.-based airline researcher behind the clean transportation council study.

A lack of investment in high-speed rail by governments in North America is also to blame, experts say, with flights between Montreal and Toronto more appealing in the absence of bullet trains.

Even if Canadian airlines were to proclaim carbon neutrality, its effectiveness remains up in the air.

“There’s been a lot of talk lately that, ‘Look, it’s nice to go and plant trees, but it’s not truly a one-for-one offset — that there’s not enough tree-planting in the world you could do to truly offset the impact of emissions,”‘ airline expert Kaplan said.

Nor do carbon offsets address the issue of fossil fuel dependence, according to a recent paper by the David Suzuki Foundation and the Pembina Institute.

“It’s not the silver bullet … to reducing their emissions, but it’s one option of many — while others would call them modern-day indulgences where you’re paying for your sins,” Graver said.

“We’re hopeful that industry and governments together can come together and come up with a climate goal, an actual action that is beyond just lip service.”

This report by The Canadian Press was first published Jan. 19, 2020.

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Dollarama keeping an eye on competitors as Loblaw launches new ultra-discount chain

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Dollarama Inc.’s food aisles may have expanded far beyond sweet treats or piles of gum by the checkout counter in recent years, but its chief executive maintains his company is “not in the grocery business,” even if it’s keeping an eye on the sector.

“It’s just one small part of our store,” Neil Rossy told analysts on a Wednesday call, where he was questioned about the company’s food merchandise and rivals playing in the same space.

“We will keep an eye on all retailers — like all retailers keep an eye on us — to make sure that we’re competitive and we understand what’s out there.”

Over the last decade and as consumers have more recently sought deals, Dollarama’s food merchandise has expanded to include bread and pantry staples like cereal, rice and pasta sold at prices on par or below supermarkets.

However, the competition in the discount segment of the market Dollarama operates in intensified recently when the country’s biggest grocery chain began piloting a new ultra-discount store.

The No Name stores being tested by Loblaw Cos. Ltd. in Windsor, St. Catharines and Brockville, Ont., are billed as 20 per cent cheaper than discount retail competitors including No Frills. The grocery giant is able to offer such cost savings by relying on a smaller store footprint, fewer chilled products and a hearty range of No Name merchandise.

Though Rossy brushed off notions that his company is a supermarket challenger, grocers aren’t off his radar.

“All retailers in Canada are realistic about the fact that everyone is everyone’s competition on any given item or category,” he said.

Rossy declined to reveal how much of the chain’s sales would overlap with Loblaw or the food category, arguing the vast variety of items Dollarama sells is its strength rather than its grocery products alone.

“What makes Dollarama Dollarama is a very wide assortment of different departments that somewhat represent the old five-and-dime local convenience store,” he said.

The breadth of Dollarama’s offerings helped carry the company to a second-quarter profit of $285.9 million, up from $245.8 million in the same quarter last year as its sales rose 7.4 per cent.

The retailer said Wednesday the profit amounted to $1.02 per diluted share for the 13-week period ended July 28, up from 86 cents per diluted share a year earlier.

The period the quarter covers includes the start of summer, when Rossy said the weather was “terrible.”

“The weather got slightly better towards the end of the summer and our sales certainly increased, but not enough to make up for the season’s horrible start,” he said.

Sales totalled $1.56 billion for the quarter, up from $1.46 billion in the same quarter last year.

Comparable store sales, a key metric for retailers, increased 4.7 per cent, while the average transaction was down2.2 per cent and traffic was up seven per cent, RBC analyst Irene Nattel pointed out.

She told investors in a note that the numbers reflect “solid demand as cautious consumers focus on core consumables and everyday essentials.”

Analysts have attributed such behaviour to interest rates that have been slow to drop and high prices of key consumer goods, which are weighing on household budgets.

To cope, many Canadians have spent more time seeking deals, trading down to more affordable brands and forgoing small luxuries they would treat themselves to in better economic times.

“When people feel squeezed, they tend to shy away from discretionary, focus on the basics,” Rossy said. “When people are feeling good about their wallet, they tend to be more lax about the basics and more willing to spend on discretionary.”

The current economic situation has drawn in not just the average Canadian looking to save a buck or two, but also wealthier consumers.

“When the entire economy is feeling slightly squeezed, we get more consumers who might not have to or want to shop at a Dollarama generally or who enjoy shopping at a Dollarama but have the luxury of not having to worry about the price in some other store that they happen to be standing in that has those goods,” Rossy said.

“Well, when times are tougher, they’ll consider the extra five minutes to go to the store next door.”

This report by The Canadian Press was first published Sept. 11, 2024.

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U.S. regulator fines TD Bank US$28M for faulty consumer reports

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TORONTO – The U.S. Consumer Financial Protection Bureau has ordered TD Bank Group to pay US$28 million for repeatedly sharing inaccurate, negative information about its customers to consumer reporting companies.

The agency says TD has to pay US$7.76 million in total to tens of thousands of victims of its illegal actions, along with a US$20 million civil penalty.

It says TD shared information that contained systemic errors about credit card and bank deposit accounts to consumer reporting companies, which can include credit reports as well as screening reports for tenants and employees and other background checks.

CFPB director Rohit Chopra says in a statement that TD threatened the consumer reports of customers with fraudulent information then “barely lifted a finger to fix it,” and that regulators will need to “focus major attention” on TD Bank to change its course.

TD says in a statement it self-identified these issues and proactively worked to improve its practices, and that it is committed to delivering on its responsibilities to its customers.

The bank also faces scrutiny in the U.S. over its anti-money laundering program where it expects to pay more than US$3 billion in monetary penalties to resolve.

This report by The Canadian Press was first published Sept. 11, 2024.

Companies in this story: (TSX:TD)

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Amazon rejects plea to stop selling taxi roof signs as cab scam spreads across Canada

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After a long day at a work event in July, Kathryn Kozody was relieved when she spotted a car with a lit-up taxi sign.

She thought it was odd when the driver told her she’d have to pay her fare with a debit card. Still, a tired Kozody hopped in the car.

“I was like, ‘Fine, it’s kind of weird, but let’s go home,'” said Kozody, who lives in Calgary.

Nothing else seemed off — until the next day when she discovered that almost $2,000 was missing from her bank account. On top of that, her debit card had someone else’s name on it.

Kozody concluded that the taxi driver was a fraudster who, during the debit card transaction, recorded her PIN, stole her card and handed her back a fake.

“I started freaking out,” she said. “It’s terrifying when they have your debit card.”

It took Kozody about two weeks to get her money back from her bank, and she’s still rattled by the experience.

The day after taking what she thought was a ride in a taxi, Kathryn Kozody of Calgary found out someone had withdrawn almost $2,000 from her bank account. (James Young/CBC News)

“It really felt like an invasion of privacy and a violation to be a victim of this scam,” she said. “I really don’t want it to happen to anybody else.”

The taxi scam isn’t new; Toronto and Montreal have been seeing it for years. But the crime is becoming more widespread.

This summer, police in Calgary, Edmonton and at least five cities in southern Ontario, including Kingston and Ottawa, posted warnings online that they had received multiple reports of the scam.

Police and the Canadian Taxi Association say the fraudsters have a helping hand: with the click of a button, they can purchase a generic — but official looking — taxi roof sign on e-commerce sites like Amazon.

Edmonton Police posted this alert on Facebook in July, warning people about an ongoing taxi scam. The city’s police department says that it received about 10 reports of the scam that month. (Edmonton Police/Facebook )

The taxi association has asked Amazon, by far Canada’s most popular online shopping site, to stop making the roof signs so easily available.

“They do have a moral responsibility to at least sell the signs to individuals that are properly licensed,” said association president Marc André Way.

However, the U.S.-based company continues to sell the product to all customers.

“These lights are legal to sell in Canada,” Amazon told CBC News in an email.

‘Eye-popping’ numbers

The taxi scam has several variations but typically ends the same way: the victim pays with a debit card, then the scammer secretly steals it and hands the victim a similar but fake card. Shortly thereafter, money disappears from the victim’s account.

Ron Hansen, deputy chief of police in Sarnia, Ont., said his department received 12 reports of the scam in July, with one victim losing $9,900.

Toronto police report that since June 2023 the department has received 919 reports of the taxi scam, totalling $1.7 million in losses.

Jessica Chin King of Toronto said after a recent cab ride, she got a suspicious activity alert from her bank. She learned $600 had been withdrawn from her account. (Craig Chivers/CBC)

The numbers are “eye-popping,” said Toronto police detective David Coffey.

“When they do get a victim, they are quick to go right into the bank accounts. They’re quick to empty them out.”

Jessica Chin King of Toronto said just 15 minutes after a recent cab ride, she got a suspicious activity alert from her bank. Turns out, $600 had been withdrawn from her account.

“I was like, ‘Wow, I can’t believe that just happened.’ I was in shock,” said Chin King, whose bank later reimbursed the cash.

She said she too was fooled by the taxi sign atop the car.

“I was in the car with somebody who wasn’t a taxi driver. Anything could have happened,” she said. “I was thankful that it was only my bank [account] that was compromised.”

Taxi light for $35 on Amazon

CBC News bought a taxi sign from Amazon for $35. It has a magnetic strip on the bottom, so it easily sticks to the top of a car.

To power the light, an attached wire can be run through the driver’s window and plugged into the car’s auxiliary power outlet, also known as the cigarette lighter outlet.

The taxi association says licensed taxi drivers typically get their roof signs from speciality suppliers, and they are hardwired to the car — not powered via the cigarette lighter.

“When you see that … it’s obvious that it’s not a legitimate taxi,” said Way, the association president.

Last month, Way sent Amazon a letter on behalf of the Canadian Taxi Association, asking it to stop selling the product.

“This is not a safe, practical way to distribute the trusted ‘Taxi’ signs,” he wrote.

CBC News ordered this $35 taxi sign on Amazon. The attached wire can be run through the driver’s window and plugged into the car’s auxiliary power outlet, while the lights for licensed drivers are hardwired into the vehicle. (Sophia Harris/CBC News)

But Amazon told Way — and CBC News — the signs will remain on its site, because the company isn’t breaking any rules.

“It’s going to be quite difficult, I think, for anyone to stop Amazon from selling a product that is perfectly legal to sell,” said Toronto criminal lawyer, Daniel Goldbloom. “It’s true that these taxi signs can be used to commit scams, but kitchen knives can be used to commit murder — and we don’t stop retailers from selling those.”

But Way isn’t giving up hope.

He says the taxi association also plans to ask other online retailers, such as Temu and eBay, to stop selling the taxi signs and will lobby provincial governments for legislation that regulates the sale of the product.

However, Coffey said he believes the best way to fight the taxi scam is to educate people about it.

“Never, never give another person control of your debit card,” the detective said.

Victims Chin King and Kozody also want to spread the word.

“The more people know, the less likely it is to happen again to somebody else,” Kozody said.

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