Date Published: 
01/18/2013

 

When travelers shop for flights at any of Porter’s distribution channels they have to ‎agree to the company’s policy by signature. Some of Porter’s policies disclaim liability ‎for failing to make connections, to operate any flight according to schedule, or for ‎changing the schedule for any flight.‎

Following a complaint by Gabor Lucas, a passenger rights’ advocate, the Canadian ‎Transportation Agency decided to cancel some elements of Porter’s policy, which ‎basically means that passengers who miss their connections or are affected by a schedule ‎change may seek compensation from the airline. ‎

Up until now Porter has compensated passengers “on a case-by-case basis”, and could ‎refuse payment for expenses that were incurred as a result of delays or cancellation. ‎Now, following CTA act, Porter will have to prove that the case was out of its control ‎‎(snowstorm, terror attack, etc.) in order to not be liable. ‎

Porter has declared that it already started to review its policy.‎

 

Risk Management Perspective: 

 Having a service policy, even one that is signed by customers, doesn’t discharge a ‎company from being aligned with both laws and regulations. Especially in regulated ‎industries, customers will have recourse if the exclusions appear to be too one-sided.  ‎

Industry Group: 
Large Enterprises
Industry: 
Airlines
Country: 
Canada
Risk Class: 
Operational
Risk Type: 
Compliance

Copyright © 2010 RiskOnBoard All rights reserved. Designed by CERAiT.com v2.1 Feb 02, 2011