09/02/2015 08:24 EDT | Updated 09/02/2016 05:59 EDT

Air Canada Faces Class-Action Lawsuit After Cancelling 10-Flights-For-$800 Deal

Peter Mintz via Getty Images
VANCOUVER — A mistake by Air Canada in offering a package of flights at just 10 per cent of the value has triggered a proposed class-action lawsuit by customers who thought they got an amazing deal.

Court documents, filed in both Quebec and British Columbia, stated the flight pass was offered between Aug. 25 and Aug. 28 at just under $800, but customers were told days later the cost of 10 one-way business-class flights in the western U.S. or Canada was actually $8,000.

The documents said Air Canada (TSX:AC.A) refused to live up to its contractual obligations and illegally removed the flight passes.

Garrett Munroe, a lawyer with Munroe and Company, the B.C. firm behind the legal action, said the lawsuit could involve thousands of people, but only Air Canada knows exactly how many people purchased the deal.

"Our view here is that Air Canada has made an enforceable contract, it delivered the flight packages to consumers and it has improperly taken them away," he said in an interview.

"Air Canada is duty bound and legally obligated to honour its bargain."

Nothing has been proven in court.

Air Canada spokeswoman Angela Mah wouldn't comment on the lawsuit but released a previous statement that said a "computer-loading error" was responsible for the "temporary mispricing."

"Air Canada has contacted purchasers to apologize and provided a refund," the statement said.

The airline said any flights already booked with the pass would be honoured.

But Munroe said they want the courts to force Air Canada to live up to its original bargain.

"They say it's a mistake, but how much recklessness is reasonable in terms of allowing the website to show an offer that they don't intend to be bound by," he said.

"It would create a significant amount of confusion and uncertainty in the marketplace if consumers were conducting business with the possibility that the merchant is going to come back and attempt to undo the deal that it made."

It was an attractive price and people bought the package expecting to be able to use it, he said.

"It shouldn't be up to the consumer to second-guess the merchant's motivations in advertising a particular product for sale at a particular price."

The next step is to ask the courts in both provinces to certify the class-action lawsuit that would represent all those who ask to be part of it.

"Rather than having tens-of-thousands of lawsuits, it can be dealt with as one," Munroe noted.

Even if Air Canada decided to honour the agreements for the same price now, that doesn't take care of the legal action because the consumer has lost out on potentially planned trips, he said.

Also on HuffPost:

  • Best Overall Coach-Class Airline in North America: JetBlue
    Even after the current downgrading, JetBlue's extra legroom still beats any other airline. The de facto charge for a checked bag, at $15 over the minimum fare, is less than on most other airlines. The satellite-based Wi-Fi is free, at slow speeds, and $9 an hour for enough bandwidth to stream movies. And seats in JetBlue's Airbus planes are an inch wider than on any competitors' 737s. Related: 7 Embarrassing Travel Gadgets That Actually Work (Photo: JetBlue)
  • Most Consumer-Friendly Coach-Class Airline in North America: Southwest
    Its "two checked bags at no extra charge" and "no ticket-change penalty" policies make Southwest a clear winner for being nice to customers. Fortunately, at least so far, Southwest seems to have convinced Wall Street that those passenger-friendly policies gain more revenue in total customers than it would gain by imposing fees and losing customers. With other giant carriers charging checked bag fees of $25 a pop, even one checked bag gives Southwest a $50 round-trip fare advantage. Southwest has even managed to tame the chaos of its unique no-advance-assignment boarding process: You get your boarding group and number when you check in, which you can do online starting 24 hours before departure; at the airport, you line up according to number, and get on the plane with a minimum of pushing and shoving. (Photo: Southwest Airlines)
  • Best Frequent-Flyer Program for Occasional Travelers, North America: Alaska Mileage Plan
    At least for now, Alaska Airlines' Mileage Plan seems more generous than the big-line programs that are moving toward dollar-based earnings and rewards. You still get one mile for every mile flown, and the award chart mileage requirements are less than the effective requirements on the giant airlines. Alaska still has useful partnerships with Air France/KLM, American, British Airways, Delta, Korean, Qantas, and a few others. We don't know how long Alaska will retain its current system, but it's a winner as long as today's rules remain. If you accumulate miles or points through a credit card that allows transfers, such as American Express, the award chart for Air Canada's Aeroplan is more generous than current big lines' plans. But you get only partial mileage credit when you fly on Air Canada's lowest fares. Related: 6 Ways to Get the Best Coach Seat Every Time (Photo: Alaska Airlines)
  • Coolest Coach-Class Airline in North America: Virgin America
    Yes, JetBlue beats it by the measurements, but Virgin America keeps earning great survey ratings for its flashy decor, well-trained flight attendants, top inflight technology, and general flair. Obviously, lots of travelers like what it has to offer. You might like it, too. The "Branson cool factor" also applies to Virgin Atlantic and Virgin Australia. (Photo: Virgin America)
  • Best Ultra-Low-Fare Coach-Class Airline in North America: Allegiant
    The nod for best ultra-low-fare carrier for coach-class service goes to Allegiant, not because of its base product—which is down there with Spirit in terms of sheer torture—but because it alone brings the only low-fare mainline service to dozens of communities where travelers would otherwise have to rely on regional flights to nearby hubs, with the usual hassle, wasted time, and high fares of hub connections. Allegiant's "nowhere to somewhere" business model gives travelers to/from communities as small as Hagerstown, Missoula, Owensboro, Provo, South Bend, and Stockton access to nonstop flights to 16 of the country's primary leisure travel destinations, including Honolulu, Las Vegas, Myrtle Beach, Orlando, and Phoenix. If you live in or near a big city, you'd never even think about Allegiant. But it's a no-brainer if you live in the sticks. Related: How to Get a Refund on a Non-Refundable Flight (Photo: Allegiant via Chris Parypa Photography/
  • Best Coach-Class Airline for Seniors in North America: Southwest
    Southwest is the only airline to offer useful senior fares for travelers 65 or over. Senior fares aren't as low as Southwest's initial lowest "Wanna Get Away" fares for travelers of any age, but when those lowest-fare buckets sell out or when they're no longer available less than a week in advance, Southwest's unrestricted senior fares are usually a lot less than any remaining any-age fares. (Photo: Southwest Airlines)
  • Best Extra-Legroom Airline in North America: JetBlue
    JetBlue, which starts out with a 1- to 3-inch advantage for regular coach, retains a similar advantage for its extra-legroom cabin. And the price, capped at $90 for a transcontinental flight, is likely to be lower than the variable prices other airlines charge. This is a big advantage JetBlue has over Virgin America, the one airline that surveys usually place in the same class as JetBlue. On Virgin America, the extra-legroom seats, limited to bulkhead and exit rows, cost more than three times the regular-coach fare: more than $900 on a transcon, for example, compared with a base coach fare of $300. Yes, you get extras along with the legroom, but that huge fare premium is a deal breaker for someone who just wants enough space to use an e-reader or tablet comfortably. Related: 10 Tasty Carry-on Snacks You Can Make Yourself (Photo: JetBlue)
  • Best Coach-Class Airline for Intercontinental Flights: Japan Airlines
    Japan Airlines' new-design Sky Wider economy seats provide the roomiest international economy class you can currently find. Contrary to what most other airlines are doing, JAL is sticking with eight-across seats in its 787s and nine-across in its 777s. That's one fewer seat in each row than the current standard among most other lines, and the remaining seats are almost two inches wider than competitors' seats. The new cabins also offer an industry-leading 34-inch pitch, compared with the 30- to 32-inch pitch you find on most other intercontinental airlines. The onboard catering generally earns high marks, as well; economy travelers enjoy individual 10-inch screens, and the new 777s and 787s provide satellite-based Wi-Fi. Related: 8 Foods You Should Never Eat Before Flying (Photo: Japan Airlines via Vytautas Kielaitis/
  • Best Coach-Class Airline for Transatlantic Flights: Turkish
    Like JAL, Turkish is sticking with nine-across seating in its 777s, and the onboard service generally earns high marks. Swiss International also rises above others for catering. (Photo: Turkish Airlines)
  • Best Low-Fare Coach-Class Airline for Transatlantic Flights: Norwegian
    Norwegian flies 787s from a handful of U.S. cities to Scandinavia and from Los Angeles or New York to London/Gatwick. It recently started flying from Baltimore, Boston, and New York to Guadeloupe and Martinique. Fares are usually—although not always—lower than on the giant airlines, and its 787 product is on par with what the big competitors offer. Related: We Flew on Norwegian's 787 Dreamliner (and It Was Awesome) (Photo: Norwegian Air)
  • Best Business-Class Airline with Coach-Class Prices: La Compagnie
    The giant airlines will charge you around $1,200 for a nonstop summer round-trip flight between New York and Paris in a cattle-car economy cabin. But two people paying $1,495 each can move up to an angle-flat business-class seat, with business-class cabin service, on La Compagnie, the niche French airline offering low-cost business-class service from Newark to London/Luton and Paris/DeGaulle. La Compagnie's current fare is almost $1,000 less than the premium economy fares on Open Skies or Air France. The price gap between regular economy and La Compagnie isn't always this small. But whenever it is, you sure feel better when you arrive in London or Paris after an overnight in business class than in economy. It's worth considering. Related: 7 Secrets of Ultra-Cheap Europe Flights (Photo: La Compagnie)
  • Best Coach-Class Airplane for Short Flights: Embraer
    The Embraer 170/175/190/195 series might seem a surprise call, but seats are at least as wide as on A320 series, and they're all two-by-two, with no middles. You never feel bottled up the way those 737s and A320s make you feel. And while it's not technically an airline, this aircraft makes the list because you should look for it when searching for any short-haul coach-class flight. You Might Also Like: 10 Free Things You Can Get at the Airport 10 Things You Should Pack (But Probably Won't) 10 Ways to Speed Through Airport Security (Photo: Thinkstock/iStock)