On A Wing And A Prayer

 

H/t MacKay

As one who will very soon be on a plane, I watched with great interest but low expectations yesterday's committee hearing into the fiasco of air travel over the Christmas holidays. My expectations were met.

While many of the airline chiefs chose to appear via Zoom (not exactly a ringing endorsement of their airlines' ability to deliver them to Ottawa), the overall message from all of them was yes, they did not meet the expectations of their customers and so sorry, but, you know, the weather and 'operational issues' got in the way. 

Not to be outdone by this anemic response, Canada's Transport Minister, Omar Alghabra, told the committee

he was being briefed multiple times a day by his staff as they spoke with Canada’s major airlines, whose executives also appeared to face questions from MPs over their handling of the disruptions.

Those executives and officials ... told the committee earlier Thursday they did not hear from Alghabra directly during the holiday season.

Clearly a man of action, Alghabra averred that he was involved all the way:

“The airlines and airports were not confused about my instructions or my feelings about what was happening, about my expectations.

“I want to tell you that our government is not hiding.”

Whatever those instructions, feelings and expectations were, they apparently forked no lightning in the offices of the airline executives. Likely they are aware of the fact that even though the government can levy fines of up to $25,000 (a mere pittance),

in the past five years just one carrier — WestJet, for 55 instances in late January 2022 — has been fined for not providing adequate compensation to passengers. The total penalty was $11,000.

WestJet was also fined $20,000 last year for multiple instances of failing to provide passengers a reason for delayed or cancelled flights in late December 2021 and early January 2022. Other airlines, including Air Canada and Flair, have been fined for the same violation in recent years.

That'll teach em', eh?

It seems unlikely that any further penalties will be assessed, as the transport minister urges people to file compensation claims under the Passenger Bill of Rights (you know, the one with enough loopholes, as one committee member said, to fly a 747 through). One of the problems with that 'solution', clearly an indication of the deference government is showing to the airlines, is the current backlog of 33,000 complaints, which will take at least 18 months to clear up.

“Why does this government treat the airlines with kid gloves?” NDP MP Taylor Bachrach asked Alghabra.

“We are not treating airlines with kid gloves,” the minister responded. “In fact we are looking at further strengthening the rules to ensure passengers are protected.”

Words, words words, as Hamlet famously said. But hey, perhaps the airlines have learned their lesson from this imbroglio. As the president of Sunwing, Len Corrado said,

“With all this said, the bottom line is we know we could have done better. When even one customer is let down by their experience with our airline. I consider that a failure,” he said.

“We’d like to reassure committee members and Canadians that we are committed to providing the quality of service experience they’ve come to expect from us over the last 20 years.”

I have the feeling that this will not be the last time Corrado and his ilk apologize for letting us down. But given this government and this minister's timidity, I guess we will have to be satisfied with that crumb from the corporate table.

 

 

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UPDATED:A Love Affair That Hurts All Of Us

 

If you follow such things (i.e., the news) you will know that our current federal government, echoing the passions of previous ones, has an unmitigated and uninterrupted crush on the corporate sector. The only problem with that protracted affair is that the rest of us suffer the consequences.

Examples abound, including the government's failure to achieve any results from the revelations found in both the Panama Papers and the Paradise Papers. But today's post will examine only two recent and egregious demonstrations of our leaders' fealty to their business overlords.

The first is the the holiday disaster widely reported at airports. While undoubtedly much of the chaos is attributable to the weather vagaries imposed by climate change, the corporate contempt for passengers is also there for all to see. And it cannot be more obvious than in the debacle that Sunwing Airlines finds itself in the midst of.

The Canadian government is criticising leisure specialist Sunwing Vacations after an operational meltdown left hundreds of passengers stuck when winter weather disrupted the carrier’s operations earlier this week.

The Toronto-based company, like its US peer Southwest Airlines, has been scrambling to sort through the mess, leaving customers frustrated and angry. Canadian media reports that some of the carrier’s passengers have been waiting to be repatriated from Latin American holiday destinations including Cancun for up to five days.

Hmm, about that government 'criticism'. While I have seen U.S Transportation Secretary Pete Buttigieg at least go on national television to discuss Southwest Airlines' thousands of cancellations, it was only three days ago that our Minister of Transport, Omar Alghabra (or his office) managed these anemic tweets:

Canadians are patient when it comes to weather disruptions but they rightly expect their airlines to keep them informed and to manage these disruptions smoothly. I am very concerned with the current situation with Sunwing Airlines.

 This ongoing situation is unacceptable. Canadians must receive the information they need to return home safely. We expect all airlines to keep their passengers informed when it comes to delivering a service that they were paid to do.

Passengers have rights under the Air Passenger Protection Regulations to ensure robust passenger protection in situations like these, and our government will continue to ensure these rights are protected.

Surely, that will put the fear of God into Sunwing, eh? If you click on the above link, you will see the contempt with which this toothless tweet was met by those who responded to it. 

My second example is the pending merger between Rogers and Shaw, a merger that will obviously result in less competition and higher prices for telecommunication services. At least our Competition Bureau tried to block that merger as against the best interests of Canadians, but that veto was overturned by the Competition Tribunal. As well, it has met the approval of Industry Minister Francois-Phillipe Champagne.

Those opposing it are groups seeking to represent the interests of ordinary Canadians.

Commissioner of Competition, Matthew Boswell, head of the Competition Bureau, said he was “very disappointed” in the decision and is “carefully considering” next steps.

That could include an appeal of the Tribunal’s decision to the Federal Court of Appeal.

 Critics say the Tribunal’s decision was hastily made and follows a troubling pattern in Canada’s failure to foster healthy competition in one the country’s most powerful sectors.

 “Though the decision is disappointing, it is ultimately a product of Canada’s permissive and outdated merger laws,” said Keldon Bester, co-founder of The Canadian Anti-Monopoly Project. “It is … disheartening to see the Tribunal rush such a critical decision for Canadians at the request of the merging parties.”

Matt Hatfield, campaigns director of OpenMedia, said the decision was “the last nail in the coffin of telecom affordability in a dismal 2022.”

The buyout results in higher prices and fewer choices, in an already tight telecom market, he added.

Official 'cover' for the merger is the provisional sale made to Quebecor of Freedom Mobile, an arm of the Shaw empire. It comes with the 'expectation' that it will provide sufficient competition to keep Rogers-Shaw on its toes. We'll soon see how that one works out, but the auguries are not good, especially given that Globealive, a telecommunication entity with many companies, had wanted to buy Freedom Mobile for $3.75 billion, substantially more than the $2.85 billion Quebecor has paid for it. Speculation is that that deal wasn't accepted because it would have meant real competition for the Rogers-Shaw behemoth.

So there you have it. As usual, Canadians are being sacrificed on the altar of big business, the only true god worshipped by our government. One can only hope that Canadians ruefully remember their place in the pews the next time they go to the polls.

UPDATE: Oh, perhaps we can all rest easy now that Industry Minister Francois-Phillipe Champagne has articulated his expectations for Quebecor for its purchase of Freedom Mobile to be allowed:

Videotron would have to agree to keep Freedom’s wireless licences for at least 10 years and the minister would “expect to see’’ wireless prices in Ontario and Western Canada lowered in line with the company’s Quebec offerings.

“What remains before me is the separate request to transfer spectrum licences from Shaw to Quebecor. Promoting competition and affordability in the telecom sector is one of my top priorities. That position has not changed,” Champagne said.

However, there is no word as to why he has not investigated the refusal to sell Freedom Mobile to  Globealive, despite the company offering almost $1 billion more than did Quebecor. (See above discussion.)

But Champagne's statement makes for nice window dressing, doesn't it?