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Passenger advocate urges stranded Sunwing passengers in Mexico to take legal action

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As hundreds of Canadians scramble to get home after their Sunwing flights from Mexico were cancelled last week, a passengers’ rights advocate says stranded travellers should consider legal action if they aren’t compensated by the airline.

Gabor Lukacs, president and founder of the Air Passenger Rights group, says passengers grappling with cancelled flights and inadequate information about when they might be rebooked should buy their own tickets home with a different carrier, and keep careful records and receipts of their expenses.

If Sunwing refuses to compensate them under the federal Air Passenger Protection Regulations, they should take the matter to small claims court, Lukacs said in an interview.

“We’re at a point in Canada where suing an airline is not simply about your own money, it’s about changing how they operate. It’s about behaviour modification,” he said. “And that’s where the government is derelict in its duties to the public.”

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He said passengers should also phone their local member of Parliament and ask for better enforcement of passenger rights in Canada.

As of Sunday, hundreds of Canadian travellers were stuck in Cancun, Mexico after Sunwing cancelled their flights home. Some described being shuffled from hotel to hotel, sometimes arriving to find there were no rooms booked for them, while Sunwing officials offered inaccurate and incomplete information about when they might get home.

Sheldon de Souza said in an interview Monday that a similar situation is playing out in Puerto Vallarta on Mexico’s west coast. He said he flew there with his wife, three kids and three family friends on Dec. 14, with a flight home scheduled with Sunwing on Dec. 21.

That flight was cancelled, though only some passengers were told, he said. Several days of incomplete information and confusion from Sunwing followed, he said.

He and a group of fellow passengers were moved to different hotels and asked to check out each day and report back to the lobby every hour, in case there was news of a flight.

Sunwing officials at the hotel would say there was a flight coming up then, hours later, would say it had been cancelled, de Souza said. He said in the meantime, the flights wouldn’t show up on the airport’s daily schedules, leading de Souza to believe he was being misled.

He said he booked himself a spot on an Air Canada flight back to Calgary on Dec. 23, which cost him about $1,000. His wife, his children and their friends managed to get a Sunwing flight home on Boxing Day, but only because they started showing up at the airport to push for a spot, he said.

He said they had snagged seats on a Sunwing flight to Edmonton late on Christmas Day, even making it to the gate with boarding passes. But then officials said the crew were beyond their allowed maximum working hours and the plane was cancelled.

“It felt like Sunwing just abandoned us, they didn’t care,” de Souza said. “It’s not even that they made an effort, they forgot us.”

He said there were “several hundred” Canadians stranded in Puerto Vallarta when he left, and some are likely still there.

The federal Air Passenger Protection Regulations mandates airlines to pay up to $1,000 in compensation for cancellations or significant delays that stem from reasons within the carrier’s control when the notification comes 14 days or less before departure.

Lukacs said it’s unlikely Sunwing will voluntarily pay up. The Canadian Transportation Agency, which acts as the federal airline regulator, doesn’t do enough to hold airlines accountable, he said, so they don’t feel much pressure to obey the rules.

Federal legislation grants the agency’s enforcement officers the power to investigate companies and individuals it believes have broken the rules and to issue fines of up to $25,000.

The regulator’s website shows that in the past five years, just one carrier — WestJet, for 55 instances in late January — has been fined for not providing adequate compensation to passengers. The total penalty was $11,000.

Lukacs said the agency isn’t issuing enough fines. “The government is turning a blind eye to airlines’ misconduct,” he said.

Neither Sunwing nor the Canadian Transportation Agency responded immediately to a request for comment.

Sunwing said in an email Sunday that it cancelled the flights because of bad weather and that it was trying to get people home “in the coming days.”

“Our teams are working hard to re-accommodate customers by subservicing aircraft where possible, in addition to arranging alternate hotels and transfers for those with overnight delays,” the email said.

This report by The Canadian Press was first published Dec. 26, 2022.

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Tesla Promises Cheap EVs by 2025 | OilPrice.com – OilPrice.com

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Tesla Promises Cheap EVs by 2025 | OilPrice.com



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Charles Kennedy

Charles Kennedy

Charles is a writer for Oilprice.com

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Tesla has promised to start selling cheaper models next year, days after a Reuters report revealed that the company had shelved its plans for an all-new Tesla that would cost only $25,000.

The news that Tesla was scrapping the Model 2 came amid a drop in sales and profits, and a decision to slash a tenth of the company’s global workforce. Reuters also noted increased competition from Chinese EV makers.

Tesla’s deliveries slumped in the first quarter for the first annual drop since the start of the pandemic in 2020, missing analyst forecasts by a mile in a sign that even price cuts haven’t been able to stave off an increasingly heated competition on the EV market.

Profits dropped by 50%, disappointing investors and leading to a slump in the company’s share prices, which made any good news urgently needed. Tesla delivered: it said it would bring forward the date for the release of new, lower-cost models. These would be produced on its existing platform and rolled out in the second half of 2025, per the BBC.

Reuters cited the company as warning that this change of plans could “result in achieving less cost reduction than previously expected,” however. This suggests the price tag of the new models is unlikely to be as small as the $25,000 promised for the Model 2.

The decision is based on a substantially reduced risk appetite in Tesla’s management, likely affected by the recent financial results and the intensifying competition with Chinese EV makers. Shelving the Model 2 and opting instead for cars to be produced on existing manufacturing lines is the safer move in these “uncertain times”, per the company.

Tesla is also cutting prices, as many other EV makers are doing amid a palpable decline in sales in key markets such as Europe, where the phaseout of subsidies has hit demand for EVs seriously. The cut is of about $2,000 on all models that Tesla currently sells.

By Charles Kennedy for Oilprice.com

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Why the Bank of Canada decided to hold interest rates in April – Financial Post

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Divisions within the Bank of Canada over the timing of a much-anticipated cut to its key overnight interest rate stem from concerns of some members of the central bank’s governing council that progress on taming inflation could stall in the face of stronger domestic demand — or even pick up again in the event of “new surprises.”

“Some members emphasized that, with the economy performing well, the risk had diminished that restrictive monetary policy would slow the economy more than necessary to return inflation to target,” according to a summary of deliberations for the April 10 rate decision that were published Wednesday. “They felt more reassurance was needed to reduce the risk that the downward progress on core inflation would stall, and to avoid jeopardizing the progress made thus far.”

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Others argued that there were additional risks from keeping monetary policy too tight in light of progress already made to tame inflation, which had come down “significantly” across most goods and services.

Some pointed out that the distribution of inflation rates across components of the consumer price index had approached normal, despite outsized price increases and decreases in certain components.

“Coupled with indicators that the economy was in excess supply and with a base case projection showing the output gap starting to close only next year, they felt there was a risk of keeping monetary policy more restrictive than needed.”

In the end, though, the central bankers agreed to hold the rate at five per cent because inflation remained too high and there were still upside risks to the outlook, albeit “less acute” than in the past couple of years.

Despite the “diversity of views” about when conditions will warrant cutting the interest rate, central bank officials agreed that monetary policy easing would probably be gradual, given risks to the outlook and the slow path for returning inflation to target, according to the summary of deliberations.

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They considered a number of potential risks to the outlook for economic growth and inflation, including housing and immigration, according to summary of deliberations.

The central bankers discussed the risk that housing market activity could accelerate and further boost shelter prices and acknowledged that easing monetary policy could increase the likelihood of this risk materializing. They concluded that their focus on measures such as CPI-trim, which strips out extreme movements in price changes, allowed them to effectively look through mortgage interest costs while capturing other shelter prices such as rent that are more reflective of supply and demand in housing.

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They also agreed to keep a close eye on immigration in the coming quarters due to uncertainty around recent announcements by the federal government.

“The projection incorporated continued strong population growth in the first half of 2024 followed by much softer growth, in line with the federal government’s target for reducing the share of non-permanent residents,” the summary said. “But details of how these plans will be implemented had not been announced. Governing council recognized that there was some uncertainty about future population growth and agreed it would be important to update the population forecast each quarter.”

• Email: bshecter@nationalpost.com

Bookmark our website and support our journalism: Don’t miss the business news you need to know — add financialpost.com to your bookmarks and sign up for our newsletters here.

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Meta shares sink after it reveals spending plans – BBC.com

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Woman looks at phone in front of Facebook image - stock shot.

Shares in US tech giant Meta have sunk in US after-hours trading despite better-than-expected earnings.

The Facebook and Instagram owner said expenses would be higher this year as it spends heavily on artificial intelligence (AI).

Its shares fell more than 15% after it said it expected to spend billions of dollars more than it had previously predicted in 2024.

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Meta has been updating its ad-buying products with AI tools to boost earnings growth.

It has also been introducing more AI features on its social media platforms such as chat assistants.

The firm said it now expected to spend between $35bn and $40bn, (£28bn-32bn) in 2024, up from an earlier prediction of $30-$37bn.

Its shares fell despite it beating expectations on its earnings.

First quarter revenue rose 27% to $36.46bn, while analysts had expected earnings of $36.16bn.

Sophie Lund-Yates, lead equity analyst at Hargreaves Lansdown, said its spending plans were “aggressive”.

She said Meta’s “substantial investment” in AI has helped it get people to spend time on its platforms, so advertisers are willing to spend more money “in a time when digital advertising uncertainty remains rife”.

More than 50 countries are due to have elections this year, she said, “which hugely increases uncertainty” and can spook advertisers.

She added that Meta’s “fortunes are probably also being bolstered by TikTok’s uncertain future in the US”.

Meta’s rival has said it will fight an “unconstitutional” law that could result in TikTok being sold or banned in the US.

President Biden has signed into law a bill which gives the social media platform’s Chinese owner, ByteDance, nine months to sell off the app or it will be blocked in the US.

Ms Lund-Yates said that “looking further ahead, the biggest risk [for Meta] remains regulatory”.

Last year, Meta was fined €1.2bn (£1bn) by Ireland’s data authorities for mishandling people’s data when transferring it between Europe and the US.

And in February of this year, Meta chief executive Mark Zuckerberg faced blistering criticism from US lawmakers and was pushed to apologise to families of victims of child sexual exploitation.

Ms Lund-Yates added that the firm has “more than enough resources to throw at legal challenges, but that doesn’t rule out the risks of ups and downs in market sentiment”.

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