Skypass Travel Agency’s CEO says he will leave after company is accused of discriminating against black clients
A Toronto-based travel agency that said it is facing a $300 million class-action lawsuit by black customers says its CEO will leave the company.
Skypass said Monday that CEO Scott Cairns is stepping down from his position after a settlement was reached with a group of customers.
SkyPass said it’s now looking for a new CEO who will be willing to lead a change in direction.
Sky Pass has been the subject of controversy for years, and many black customers say they were not given a fair shake.
The company said in a statement Monday that it’s taking steps to improve the company’s hiring practices and will not be making any additional comments.
The Toronto-area firm said in December that it has suspended some of its more than 1,400 employees and laid off a third in response to a federal complaint.
It also fired more than a dozen executives.
The allegations stem from a class-Action lawsuit filed in the U.S. by Black-owned business accelerator Blackstone Capital, which alleges that Sky Pass discriminates against black customers and that it discriminated against white customers.
The suit alleges that the company unfairly denied black clients access to a “safe space” for booking flights or other services, such as medical services and travel.
Blackstone also alleges that it paid less than $1.50 per seat for travel by black and Hispanic customers in its business.
A statement from the company Monday said the lawsuit has been resolved, and that Mr. CairNS will resign from his role as CEO.
It added that it will cooperate with the Justice Department’s investigation.
The settlement came after the Justice Canada alleges that Mr, Cairnas, the company was aware of a series of racial discrimination complaints and acted to correct them, but failed to do so.
A SkyPass representative said the company will continue to focus on the safety and integrity of its clients, adding that the investigation is ongoing.
The agency’s CEO, Scott C. Cairs, has been charged with 11 counts of discrimination.
The firm was founded in 1997.