Canadian Transportation Agency disallows a USD$100 service charge proposed by KLM and Northwest Airlines

    OTTAWA, Oct. 3 /CNW Telbec/ - The Canadian Transportation Agency has
disallowed a proposal made by KLM and Northwest Airlines to assess a USD$100
service charge for the refund of taxes paid on a non-refundable ticket for
transportation between points in Canada and points outside the country.
    In July 2007, the Canadian Transportation Agency suspended the proposal
pending an investigation on the matter. The Agency concluded that KLM and
Northwest have failed to demonstrate that the proposal was just and reasonable
as their positions appear to outline problems experienced within their own
distribution system rather than with travellers who have purchased tickets.
    "The Agency is of the opinion that persons who purchase non-refundable
tickets and do not use them should be able to obtain a full refund of any
taxes paid if this is allowed per the terms of the taxing authority," state
Decisions Nos. 491-A-2007 and 492-A-2007.

    The Canadian Transportation Agency is an independent quasi-judicial
tribunal which administers international air tariffs to ensure that proposed
fares, rates, charges and terms and conditions of carriage are clear, just and
reasonable, that they are consistent with Canadian legislation and
regulations, and that they meet the provisions of the relevant international
agreements and conventions.

For further information:

For further information: Jadrino Huot, Senior Communications Adviser,
(819) 953-9957, The Canadian Transportation Agency is online at;
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