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Was your travel disrupted? Here’s what you’re owed — and what you won’t get

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The weather may be clearing, but many travellers are still unable to reach their destination or return home after last week’s winter storm. Many others are still waiting for answers and refunds after their travel plans went awry.

Hundreds of Canadians have spent days stuck in Mexico, Cuba and the Dominican Republic after Sunwing repeatedly cancelled their flights home. Stranded flyers say they have received little information or support from the airline.

WestJet and Air Canada passengers also reported issues reaching their destinations.

Meanwhile, some rail passengers are still waiting to reach their destinations after Via Rail trains were halted between Windsor and Quebec City overnight Friday into Saturday, leaving travellers stuck on board for more than 20 hours. Via Rail resumed service between Toronto, Ottawa and Montreal on Tuesday but warned of significant delays due to congestion along the routes.

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While some travellers wait to find out when they might reach their destinations, others are wondering when they might receive refunds and compensation — if, that is, they’re entitled to anything at all.

A group of people sit on chairs staring at their cellphones.
The long wait began for travellers at Montreal’s Pierre Elliott Trudeau International Airport on Friday. Some passengers have yet to reach their destinations, while others are stranded and can’t get home. (Andrej Ivanov/AFP/Getty Images)

Air travel rights

There are clear rules for Canadian airlines in case of delays and cancellations, but exactly what passengers are entitled to depends on the cause of the disruption. For instance, if passengers are grounded due to reasons within the airline’s control — such as crew shortages — they are entitled to food and drink, accommodation if they have to wait overnight for a new flight, and compensation if their flight delay was more than three hours.

But if the situation is outside of the airline’s control, such as bad weather, passengers don’t get those same standards of care or compensation.

Large airlines are also supposed to rebook passengers on a new flight to their destination within 48 hours of their original departure time, even if that means booking them a ticket on a competitor’s flight. But small airlines, such as Sunwing, are required to only rebook passengers on their next available flight, or on another airline they have a partnership with.

In a statement, Sunwing said it was working to organize “recovery” flights, and said customers could book their own flights home on a different airline and then submit a refund request for their unused Sunwing flight.

John Lawford, executive director of the Public Interest Advocacy Centre in Ottawa, said it appeared that airlines were not being “forthcoming” with passengers about their right to be rebooked on another carrier.

A lot of people sit or stand around luggage in an airport. Some people are sitting on the floor looking at their cellphones.
Sunwing passengers wait at Cancun International Airport in Mexico on Tuesday. The airline says it is arranging ‘recovery’ flights for stranded travellers, but it would not say where or when those flights would take place. (Elizabeth Ruiz/AFP/Getty Images)

“Insist on trying to get a flight on a different airline…. Passengers should know they have that right if they can’t be rebooked within two days,” Lawford said.

He recommends that any delayed or stranded passengers keep all of their receipts and file a claim for compensation with their airline.

Fewer rights for rail passengers

There are no equivalent passenger rights protecting rail travellers — meaning Via Rail customers whose trips were disrupted in recent days are entitled only to whatever the company wants to give them.

In a statement to CBC News on Tuesday, Via Rail said passengers whose trains were cancelled between Dec. 24 and 26 would automatically receive a full refund. Passengers could cancel Dec. 27 trips online and obtain a refund.

Customers would need to contact Via Rail to request a refund for a connecting leg of their journey or a return trip.

A person in a coat and mask speaks with the driver of a dark blue taxi outside a Via Rail station on a snowy day.
Ester Ahn gets in a cab after her train was cancelled due to a Via Rail service stoppage around Cobourg, Ont., on Saturday. (Nick Lachance/Reuters)

It was unclear whether passengers who spent lengthy periods trapped on stopped trains last week would receive any compensation.

Via Rail said all trains on its Toronto to Ottawa and Toronto to Montreal routes would be running on the regular schedule beginning on Wednesday, but delays were possible.

Better accountability?

In the United States, Southwest Airlines is facing extra scrutiny after cancelling thousands of flights and leaving travellers stranded at airports across the country in recent days.

The U.S. Department of Transportation and the U.S. Senate committee on commerce, science and transportation both plan to look into the airline’s actions — including why it cancelled even more flights after the worst of the bad weather had passed.

A traveller lies on the floor in the line for a Southwest counter.
Southwest Airlines cancelled more than 12,000 flights around the holiday weekend, prompting investigations by the U.S. Department of Transportation and a Senate committee. Here, travellers wait at Baltimore/Washington International Airport on Tuesday. (Michael A. McCoy/Reuters)

Lawford suggested that Canadian travellers could put pressure on lawmakers to improve air passenger rights by contacting their local MP to share their travel experience.

In a statement to CBC News, a spokesperson for federal Transport Minister Omar Alghabra said his office and Transport Canada were “in regular contact with airlines and airports to ensure they have what they need to keep passengers moving safely.”

Regarding Via Rail’s disruptions, the spokesperson said the government would “hold all those involved accountable,” without providing further details.

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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

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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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