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B.C Court Of Appeal Rules Against Air Canada In Its Fuel Surcharge Ticket Practices
 
By Daniel Baxter
 

April 28, 2013 - The British Columbia Court of Appeal has ruled against Air Canada in a class action lawsuit, Unlu v. Air Canada. The case involved the carrier charging passengers a fuel surcharge and labeling it as a tax in which the carrier kept the proceeds.

Air Canada filed an appeal after Supreme Court of British Columbia in 2012, rejected the airlines' argument that the court did not have jurisdiction. 

On or about October 15, 2008 Mr. Bulent Unlu purchased an airline ticket from a travel agent with Air Canada. The cost of the flight was $870.26 and the taxes were $445.74 for a total price of $1,326. 

 
The ticket agent presented Mr. Unlu with an electronic ticket which coded the tax portion of the cost of the airplane ticket as “XT”. Within the “XT” or tax portion of the cost of the airplane ticket is an item coded as “YQ” and the cost of that item was $340.40.

Unlu soon realized after he had purchased the ticket he had been charged a fuel surcharge which had been disguised as a tax. The $340.40 was not a tax and the airline pocked the money. Air Canada knowingly and willingly represented the “YQ” item as a tax charged to and collected from the Unlu. 

Unlu filed a lawsuit (Unlu v. Air Canada) in April 2010 under the Business Practices and Consumer Protection Act, S.B.C. 2004, c. 2 (the “BPCPA”) with the Supreme Court of British Columbia in which he alleged Air Canada improperly charged a “tax and retained the money for its own use. 

The law firm of Poyner Baxter LLP of North Vancouver said BA's practice of mixing actual tax charges and airport fees (payable to governments and airports) with vastly larger false “taxes” paid into its own treasury, is common amongst many international airlines. Therefore, it could be expected that this lawsuit, if successful, would impact international fares sold in B.C. by several airlines.

 

 

Air Canada argued before the court that British Columbia's consumer protection laws are not applicable to airline ticketing practices, the court did, not have jurisdiction to hear the case because aviation is a federal responsibility and that the carrier is immune from British Columbia's Business Practices and Consumer Protection Act, and as such, the lawsuit should be dismissed. 

In 2012, Supreme Court of British Columbia Justice Adair rejected the airlines' argument and ruled the case to move forward. Air Canada appealed Adair’s ruling before The B.C. Court of Appeal. David Neave Air Canada’s lawyer said his client has not yet decided if it will seek to appeal the case before Canada’s Supreme Court.

 
 
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