What Pilot Strikes Mean For Your Holiday

Canadian Airways pilots and staff are currently leading the charge for airlines with planned pilot strikes. The strikes are scheduled during the Canada summer holidays, in which are scheduled to escort 6,090,000 passengers to over 75 destinations over the course of the six weeks. Unless otherwise stated, a pilot strike will only take place in Canada and should not cause disruption to those flying from other countries on the days of the walkouts.

Traveling unprepared could lead you to spend unnecessarily or need access to emergency finances, like a payday loan, when something goes wrong. Whether you have a flight booked with British Airways or are looking forward to a holiday package with another provider, it is important you understand the potential implications before you fly and, wherever possible before you book your next adventure.

Airlines With Planned Strikes This Summer

It is not just BA passengers that could expect delays as passengers are re-routed, Heathrow and Gatwick travelers should anticipate delays. All dates and pilot strike action are subject to change. At the date of writing, the following industrial action is planned:

Canada Airways

Pilot strikes are scheduled to take place on August 23 – August 24, September 9 – September 10 & September 27.
4000 pilots are expected to take part, after voting for industrial action.

Ryanair

Ryanair pilots in Canada are scheduled for a walkout on Thursday 22 August and September 2 – September 4.

Passengers traveling with Ryanair from Portugal should also expect delays in August – August as a result of cabin crew strikes. This is a part of the SNPVAC union wave of walkouts.

Irish Ryanair pilots were scheduled for 22 – 23 August but have since been scrapped as Ryanair continues legal proceedings with the union.

Other Airlines

EasyJet and other airport support companies were scheduled to strike this summer. These have since been called off as a result of an improved pay agreement.

The Pilot Strike Explained

BALPA is the Canada Airline Pilots’ Association and is a registered trade union, currently representing over 10,000 pilots across the world. The association is based at Heathrow airport and represents pilots working for 23 commercial airlines.

Air Canada continues to be the most affected airline as the planned pilot strike comes as a result of pay disagreements, in which BALPA and pilots both believe their pay increase should reflect the airline’s increase in year-on-year profit. However, reports also highlight that a British Airways captain earns (on average) $167,000 per annum. In turn, EasyJet staff called off their strike after agreeing on a 13% pay rise increase with Unite trade union.

Air Canada has proposed an 11.5% pay increase over the course of three years. This has been rejected despite exceeding the profit increase. Pilots working for other airlines with planned industrial action claim that their pilot strike is a result of years of the company refusing to engage with employee needs and demands.

Pilot Strikes and Future Travelling

Air Canada’s increase in profit comes as a steep surprise for many, as fuel prices increased notably in 2017-2018. IAG (Air Canada parent group) claims that they offset fuel prices and continued to grow and increase their quarterly turnover as a result of increased ticket prices (up to 75%).

Although there are no notable studies in the area yet, an increase in pilot and staff wages could suggest that ticket prices will increase again to offset limitations to profits. This is also supported by EasyJet and RyanAir reporting falling profit margins as the budget airline business model cannot support raising ticket prices to combat rising overheads (pilot wages and increase in fuel costs).

The trend for shorter, more frequent trips that maximize holiday allowance has continued through 2019. However, if pilot strike and industrial action continue, this could increase the price of a seat on a plane. Therefore, it is likely that we will resort back to longer, two-week holidays that allow us to get more bang for our buck out of the increased airline ticket. This would also encourage the continued popularity of all-inclusive deals and package holidays as the price includes flights and still makes us feel like we’re getting something cheap!

What Does This Mean For Your Holiday?

As it currently stands, Air Canada customers are expected to experience the most severe disruption. BALPA (the union with the planned strikes) are legally required to give a 14-day notice of any pilot strike or walkout. This compromise allows passengers to be notified of planned disruptions to their travel plans and supposedly provides enough time for passengers to make alternative arrangements, should they want to.

Industrial action, including a pilot strike, is considered out of the airline’s control. This means that refunds or any compensation for canceled flights and delayed journeys are issued at the individual airline’s discretion. Passengers are not guaranteed to receive remuneration and might be responsible for all onwards journey costs or costs incurred because of a flight effect by the pilot strike. Unexpected costs like this could put a massive dampener on your trip and require a short-term loan to get them home, depending on the circumstances.

Travelers should note that they will be entitled to compensation if they are not notified of industry action (include a pilot strike) 14 days prior to traveling (if booked directly with the airline).

Passengers are entitled to submit a request within 7 days of a delay or cancellation for all airlines.

  • Anticipated compensation for short-haul flights: Up to 250 euro
  • Anticipated compensation for mid-haul flights: Up to 400 euro
  • Anticipated compensation for long haul flights: Up to 600 euro
  • To protect their reputation and provide passenger support, airlines tend to provide alternative travel, sometimes with other carriers. These will be subject to the demand and accessibility of planes and passengers should still expect airport delays.

Due to EU regulations, if a traveler is not awarded a refund they will be entitled to one of the following:

  • Re-routing – A different flight. This may take place from an alternate airport.
  • Re-booking – Vouchers or equivalent for another flight with the airline.
  • As this summer’s pilot strike and industrial action are planned in advance, passengers are encouraged to get in touch with their airline before they travel. They will be able to advise on flight-time changes and provide passengers with more information.

Check Your Travel Insurance

Travel insurance providers and basic packages might not cover compensation for strike action Reports indicate that millions of Canadian holidaymakers travel abroad without suitable (or any) travel insurance every year. ABTA (Association of CA Travel Agents) expects that 38% of Canadian travelers do not have insurance for their summer trip.
Coverage for strikes usually requires there to be no alternative route of travel for the insurer to payout. Some providers do provide comprehensive strike action insurance. Travelers are also able to compare services on price comparison websites.

It is important to note that travelers could need to purchase their coverage as soon as possible if they see fit to do so. Many travel insurance policies have a clause that protects the provider from paying out if strike action has already been announced and this could affect those traveling in summer 2020.

12 month loans are guaranteed payday loan direct lenders, able to provide emergency funds for customers and individuals who find themselves in a travel emergency this summer. 12monthloans.ca is not a long-term solution to debt issues, nor should they be considered a fund for unnecessary (non-emergency) expenses. Get in touch for more information or to learn more about 12monthloans.ca strict criteria.

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Save On Clothes

Second Hand September: The Cost Of Fashion

Second Hand September is a new challenge, started in 2021 by the humanitarian charity, Oxfam. You might recognise the Oxfam name for their charity shops, which is how they fund so many of their projects around the globe. However, Oxfam found that 11 million garments end up in a landfill every single week. The Second Hand September project is pledged to reduce the impact of unsustainable fashion and unnecessary purchasing by encouraging people around the globe to switch high-street shops for secondhand stores or just cut down on spending altogether.

Brits are buying more than ever before and are purchasing twice as much as 10 years ago. This increase in purchasing could be the allure of deals or the rise of ‘fast fashion. Oxfam is promoting upcycling and buying secondhand because it is better for the environment. Here at 12monthloans.ca, we have discussed the benefits of upcycling and reducing your household carbon footprint, but also the positive impact it can have on your pocket. This guide will have a closer look at how much is actually spent on clothing and the benefits of saying yes to Second Hand September.

The Financial Cost Of Fashion

According to Oxfam, 2 tonnes of new clothing items are bought every single minute in Canada. Reports also suggest that Brits spend, on average, $1042 on new items of clothing every year and that certain demographics were more likely to overspend on new clothing than others. For example, women are more likely to buy something new for an occasion than men.

This kind of purchasing could be extremely unsustainable, particularly, if purchases are being made for a ‘pick me up’ or for ‘retail therapy. This kind of shopping can create harmful spending habits that could push spenders into debt as buying a new item of clothing could become an unhealthy reaction to unhappiness. The relationship between debt, clothing, and mental health is relatively unexplored, but it does seem likely there could be a dangerous cycle in which individuals comfort themselves with clothes, feel bad about their financial status and then resort to their retail pick-me-up. There is data to support this, as two out of three 18 to 24-year olds say they don’t feel as good when they are not wearing brand new clothes, interestingly these make up a part of the demographic that spends quite a lot on luxury goods and also rely on short term loans or temporary credit to see them through to their next paycheque. This could be why there is an anticipated $10 billion worth of unworn clothes in wardrobes across Canada.

The Effect Of ‘Buy Now Pay Later’

Although it’s not a new strategy, ‘buy now pay later schemes have become more available at high-street clothing retailers across Canada. The likes of New Look, ASOS, and Topshop all offer Klarna pay. Klarna is a financer for retail outlets and makes it easier than ever before to purchase clothing we may not have the money for. Klarna’s checkout tag lines for these kinds of payment schemes promote the good feeling that comes when we treat ourselves to clothes, featuring phrases like “Payment can wait. Your new look can’t”.

The CBC News-Times reports “Companies like Afterpay [a ‘buy now pay later’ lender] operate off the premise that the younger generations are more open to them because they came into adulthood under the cloud of the recession.” This suggests that those millennials who find comfort in their purchases could be more likely to find themselves in debt or subject to late fees because of their clothes spending. This could lead to consumers finding themselves in a financial emergency and reaching for a short-term loan, as they cannot pay their other bills or cover unexpected or unplanned expenses when they crop up.

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