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They were trying to get passengers to cancel their flights rather than have the airline cancel. That meant they would only get a refund and not be compensated for extra expenses or rebooked with another carrier. Under the airline code of conduct, they were supposed to book with another airline within 3 days, but because of the season there wasn't a lot of space available. Passengers who canceled on their own and then tried rebooking were finding ticket prices at least double what the Air Canada tickets cost and wouldn't be eligible to claim the difference. There's already class-action lawsuits in the works.