WestJet has once again sparked customer fury after the airline cancelled several flights in July and told passengers they weren’t entitled to refunds.
“It’s unacceptable,”said Shanie Couture.
With COVID-19 restrictions easing, the Quebec City woman booked her family of four on a round-trip flight from Montreal to Edmonton, departing July 24.
But almost two weeks later, WestJet cancelled the flight and rebooked the family on a new flight, which now included a stopover in Toronto each way.
Couture only wanted a direct flight, as she was travelling with two young children and had to drive more than 260 kilometres from Quebec City to get to the Montreal airport.
“This is my one-year-old’s first time flying. I wanted to make it easier for them by taking only one flight,” said Couture. “So I wasn’t going to drive that distance to then have two flights to deal with.”
When she called WestJet and requested a refund for the $1,768 she spent on tickets, Couture said an employee refused her request, telling her she could only get a credit for a future flight.
Couture unhappily accepted the credit, and spent an additional $2,369 to rebook her family on a preferable flight with another airline.
“I was very disappointed,” she said. “I work in customer service. If I can’t fulfil something for a customer, I give them a refund. I don’t give them a store credit. That’s not how it works.”
CBC News interviewed four WestJet customers who each had booked flights to different destinations, all departing in July. In each case, WestJet cancelled their direct flight in mid-June and rebooked the customer on a longer flight that now included a stopover. In two cases, the new flights departed on different dates.
Each passenger said they requested a refund — but were only offered a credit.
Three out of the four passengers wound up rebooking with another airline, essentially paying twice for their tickets.
And there are dozens of similar customer complaints concerning WestJet flight changes posted on social media.
<a href=”https://twitter.com/WestJet?ref_src=twsrc%5Etfw”>@WestJet</a> So you cancel our direct flight, put us on awful connecting flights. I go to cancel online and you will only refund to my travel bank?! You cancelled my flight! I want my $ back!
<a href=”https://twitter.com/WestJet?ref_src=twsrc%5Etfw”>@WestJet</a> changed my flight departure day and I can’t travel then. Tried to get a refund and they gave me travel credit for their airline. It’s solely their fault it changed. Been on hold over 2hrs and nothing. <a href=”https://twitter.com/hashtag/airlinessuck?src=hash&ref_src=twsrc%5Etfw”>#airlinessuck</a> <a href=”https://twitter.com/hashtag/annoyed?src=hash&ref_src=twsrc%5Etfw”>#annoyed</a>
In an email inquiry to WestJet, CBC News pointed out that Canada’s Air Passenger Protection Regulations (APPR) suggest the customers interviewed were entitled to refunds.
Under the federal rules, airlines must offer refunds for flights cancelled for reasons within their control, as well as offer to rebook passengers on another airline if it can’t find an alternative flight leaving within nine hours of the original departure.
Following several back-and-forth emails, WestJet responded that it had reviewed the customers’ cases and determined they deserved refunds, which the airline said it would now provide.
“We apologize for the inconvenience and are reviewing our processes to make necessary improvements,” said WestJet spokesperson Morgan Bell in an email.
It shouldn’t be so difficult for passengers to get a refund they are entitled to, said Ian Jack, a spokesperson with Canadian Automobile Association (CAA), a non-profit that serves Canadian travellers.
“You should treat your customers right,” he said. “That clearly didn’t happen in this case until some extra pressure was applied.”
‘Putting people first’
Last year, after the pandemic dropped most air travel to a halt, WestJet and several other airlines faced criticism for refusing to provide refunds for cancelled flights.
But by October 2020, WestJetchanged its tune and became the first national Canadian airline to announce it would provide refunds for flights cancelled due to the pandemic.
“We are an airline that has built its reputation on putting people first,” WestJet president and CEO Ed Sims said in a statement at that time.
That wasn’t the message Seema Shirali, of Markham, Ont., said she received when WestJet cancelled a direct flight she booked for herself and her husband, from Toronto to New York City, for July 30.
The airline rebooked the couple on flights with a stopover in Atlanta, adding almost 4.5 hours to what was originally a 2.5-hour trip. On top of that, Shirali’s husband was booked to fly home one day earlier than his original return date.
That meant his four-day trip to visit the couple’s daughter would last only three days.
“The problem was that he has very little time,” said Shirali. “I was really upset.”
WestJet refused to give her a refund, she said, so she begrudgingly accepted a $502 credit for the couple’s departing flight, as well as her husband’s return flight and rebooked them with another airline — at an additional cost of $707.
“Now we have credits and money locked up,” said Shirali. “What if this happens again? Like, do I really want to use WestJet again?”
‘Unpredictable demand’ during COVID
When CBC News first contacted WestJet last week about its recent spate of flight cancellations, the airline made no mention of offering refunds.
WestJet had to make flight adjustments “to accommodate unpredictable and inconsistent demand trends that are being influenced by changing [government] travel policies and guidance,” said Bell.
She added that the airline was “doing our best to resolve complaints.”
The federal government says it will soon ease restrictions for fully vaccinated Canadians and permanent residents returning from international travel. 2:14
WestJet didn’t specify if it deemed the flight adjustments as outside of its control, due to the pandemic.
Consumer advocate Jack argues that, at this point, the move is a controllable business decision.
“The airlines have had months to figure out how to manage under these circumstances, to understand what their [passenger] loads tend to be.”
CBC News outlined to WestJet the airline’s pledge to refund pandemic-related cancellations, the APPR rules on refunds for flights within an airline’s control, as well as U.S. Department of Transportation regulations mandating that airlines flying to and from the United States provide refunds for cancelled flights — no matter what the reason.
Two out of the four customers interviewed were booked on flights to the U.S.
Bell responded that WestJet had determined the four customers did indeed deserve refunds, but didn’t provide the reasons behind the decision.
As for Couture, she said a WestJet agent contacted her Thursday evening to start the refund process.
“If they really do reimburse me I’ll be really happy. It’s just — it’s sad that it took this to get reimbursed.”
The Canadian Transportation Agency (CTA) said it has received complaints involving this matter and is monitoring the situation. Two customers CBC News interviewed had filed complaints with the CTA.
TOKYO (AP) — Japanese technology group SoftBank swung back to profitability in the July-September quarter, boosted by positive results in its Vision Fund investments.
Tokyo-based SoftBank Group Corp. reported Tuesday a fiscal second quarter profit of nearly 1.18 trillion yen ($7.7 billion), compared with a 931 billion yen loss in the year-earlier period.
Quarterly sales edged up about 6% to nearly 1.77 trillion yen ($11.5 billion).
SoftBank credited income from royalties and licensing related to its holdings in Arm, a computer chip-designing company, whose business spans smartphones, data centers, networking equipment, automotive, consumer electronic devices, and AI applications.
The results were also helped by the absence of losses related to SoftBank’s investment in office-space sharing venture WeWork, which hit the previous fiscal year.
WeWork, which filed for Chapter 11 bankruptcy protection in 2023, emerged from Chapter 11 in June.
SoftBank has benefitted in recent months from rising share prices in some investment, such as U.S.-based e-commerce company Coupang, Chinese mobility provider DiDi Global and Bytedance, the Chinese developer of TikTok.
SoftBank’s financial results tend to swing wildly, partly because of its sprawling investment portfolio that includes search engine Yahoo, Chinese retailer Alibaba, and artificial intelligence company Nvidia.
SoftBank makes investments in a variety of companies that it groups together in a series of Vision Funds.
The company’s founder, Masayoshi Son, is a pioneer in technology investment in Japan. SoftBank Group does not give earnings forecasts.
Shopify Inc. executives brushed off concerns that incoming U.S. President Donald Trump will be a major detriment to many of the company’s merchants.
“There’s nothing in what we’ve heard from Trump, nor would there have been anything from (Democratic candidate) Kamala (Harris), which we think impacts the overall state of new business formation and entrepreneurship,” Shopify’s chief financial officer Jeff Hoffmeister told analysts on a call Tuesday.
“We still feel really good about all the merchants out there, all the entrepreneurs that want to start new businesses and that’s obviously not going to change with the administration.”
Hoffmeister’s comments come a week after Trump, a Republican businessman, trounced Harris in an election that will soon return him to the Oval Office.
On the campaign trail, he threatened to impose tariffs of 60 per cent on imports from China and roughly 10 per cent to 20 per cent on goods from all other countries.
If the president-elect makes good on the promise, many worry the cost of operating will soar for companies, including customers of Shopify, which sells e-commerce software to small businesses but also brands as big as Kylie Cosmetics and Victoria’s Secret.
These merchants may feel they have no choice but to pass on the increases to customers, perhaps sparking more inflation.
If Trump’s tariffs do come to fruition, Shopify’s president Harley Finkelstein pointed out China is “not a huge area” for Shopify.
However, “we can’t anticipate what every presidential administration is going to do,” he cautioned.
He likened the uncertainty facing the business community to the COVID-19 pandemic where Shopify had to help companies migrate online.
“Our job is no matter what comes the way of our merchants, we provide them with tools and service and support for them to navigate it really well,” he said.
Finkelstein was questioned about the forthcoming U.S. leadership change on a call meant to delve into Shopify’s latest earnings, which sent shares soaring 27 per cent to $158.63 shortly after Tuesday’s market open.
The Ottawa-based company, which keeps its books in U.S. dollars, reported US$828 million in net income for its third quarter, up from US$718 million in the same quarter last year, as its revenue rose 26 per cent.
Revenue for the period ended Sept. 30 totalled US$2.16 billion, up from US$1.71 billion a year earlier.
Subscription solutions revenue reached US$610 million, up from US$486 million in the same quarter last year.
Merchant solutions revenue amounted to US$1.55 billion, up from US$1.23 billion.
Shopify’s net income excluding the impact of equity investments totalled US$344 million for the quarter, up from US$173 million in the same quarter last year.
Daniel Chan, a TD Cowen analyst, said the results show Shopify has a leadership position in the e-commerce world and “a continued ability to gain market share.”
In its outlook for its fourth quarter of 2024, the company said it expects revenue to grow at a mid-to-high-twenties percentage rate on a year-over-year basis.
“Q4 guidance suggests Shopify will finish the year strong, with better-than-expected revenue growth and operating margin,” Chan pointed out in a note to investors.
This report by The Canadian Press was first published Nov. 12, 2024.
TORONTO – RioCan Real Estate Investment Trust says it has cut almost 10 per cent of its staff as it deals with a slowdown in the condo market and overall pushes for greater efficiency.
The company says the cuts, which amount to around 60 employees based on its last annual filing, will mean about $9 million in restructuring charges and should translate to about $8 million in annualized cash savings.
The job cuts come as RioCan and others scale back condo development plans as the market softens, but chief executive Jonathan Gitlin says the reductions were from a companywide efficiency effort.
RioCan says it doesn’t plan to start any new construction of mixed-use properties this year and well into 2025 as it adjusts to the shifting market demand.
The company reported a net income of $96.9 million in the third quarter, up from a loss of $73.5 million last year, as it saw a $159 million boost from a favourable change in the fair value of investment properties.
RioCan reported what it says is a record-breaking 97.8 per cent occupancy rate in the quarter including retail committed occupancy of 98.6 per cent.
This report by The Canadian Press was first published Nov. 12, 2024.