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Gabor Lukacs, seen at home in Halifax on Thursday, is calling on the Canadian Transportation Agency to order SkyGreece to put up $8.7-million of security to cover passenger claims.Andrew Vaughan/The Canadian Press

The Canadian Transportation Agency is being asked for an emergency order to protect and compensate stranded passengers of SkyGreece Airlines, which ceased operations on Thursday after more than a week of disrupted service.

A claim filed Friday by passenger-rights advocate Gabor Lukacs says the federal agency has broad powers and should use them now to protect an estimated 1,000 passengers affected by recent flight cancellations by SkyGreece Airlines.

Mr. Lukacs is calling on the agency to order SkyGreece to rebook its stranded passengers on other airlines within 24 hours and put up $8.7-million of security to cover passenger claims.

The agency didn't immediately respond to a request for comment. But on its website, it said unused tickets may be eligible for refunds from travel agencies, credit-card companies and travel agencies in Ontario, Quebec and British Columbia.

Quebec's consumer protection agency said passengers from the province who purchased their flights from a licensed travel agency can be reimbursed for returning flights and costs such as accommodation and food. It has appointed accounting firm Raymond Chabot Grant Thornton to manage such claims and help passengers return to Canada.

Messages to SkyGreece were not returned. The company said in a news release the flight disruption was due to technical issues and financial setbacks resulting from the Greek economic crisis that took place shortly after it launched scheduled international service in May.

"Unfortunately, as a result of recent technical issues, the company is now facing a system-wide, multiday delay and significant additional expenses."

The company didn't specify what technical issues it was experiencing. However, it said that a European regulation governs the rights and method of claims for cancelled flights operated by SkyGreece Airlines SA.

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