Canadian airlines and a major business group say proposed new government rules to protect air passenger rights are “burdensome” and could lead to higher air fares and reduced service.
In an email to Open Jaw, Air Canada said it is still studying the proposed changes, “including how some of these rules can be implemented as they don’t appear to take into account airlines’ operational reality, particularly that of large network carrier like ours that flies worldwide.
“We also remain concerned with the costs of the proposed changes, many of which could flow through to travellers either in the form of higher fares or reduced service, especially on regional routes.”
A top Canadian Chamber of Commerce official said the proposed rules “will make flying more expensive and threaten regional connectivity, hurting businesses across the country.”
“Instead of bringing in costly new regulations, the federal government needs to capitalize on the strengths of our aviation sector by creating new opportunities that drive inbound tourism and attract investment,” said Pascal Chan, Senior Director, Transportation, Infrastructure & Construction.
The Canadian Transportation Agency (CTA) on 21DEC issued a report that says Canadian airlines should be required to provide meals to passengers whose flights are delayed at least two hours, along with overnight accommodation if necessary.
The government says those rules should apply even if delays or cancellations are caused by an "exceptional circumstance" outside of the carriers' control.
Airlines would also have to provide refunds within 15 days, down from the current deadline of 30 days, if a passenger prefers to be reimbursed rather than rebooked when their flight is cancelled, delayed at least three hours, or they are bumped from the flight, Canadian Press reports.
The Trudeau government says it welcomes comments on the rules between now and early March.
The National Airlines Council of Canada said many groups, including airlines, tourism groups, unions and chambers of commerce, have told the CTA that they’re worried about the potential impact new rules would have on the aviation industry.
“Concerns included the negative impact that the CTA’s proposals would have on regional connectivity, cost of air travel, ability to meet regulatory requirements, impact on pilots, and so forth," council president Jeff Morrison said in a statement. "The proposed regulations fall short of addressing these concerns, as they provide for requirements that are costly, burdensome and do not take into consideration the complex operational reality of airlines.
"If adopted, they would impact affordability and connectivity for Canadians."
Even without new regulations, Morrison said Canadian airlines have demonstrated substantial progress in improving air travel performance, delivering more efficient, predictable and reliable service to passengers. Furthermore, as many experts during the consultation period confirmed, since the introduction of a similar passenger rights regime in the European Union over 10 years ago … there has been no direct impact on performance, but costs have risen significantly."
“Canada’s airlines strongly believe the federal government needs to focus its efforts on improving the competitiveness of the overall air travel system and its affordability, and will not add costs to the system," Morrison added. "The federal government must support the system by reinvesting airport rent into airport infrastructure, reforming the CTA claims adjudication process to reduce the existing backlog, reviewing all federal fees and charges, and modernizing Canada’s regulatory regime.”
On the other side of the aisle, consumer advocate Gabor Lukacs says the rules are “deceptive” and give airlines too many loopholes that would allow them to deny air passenger claims.
Canadian Press quotes Lukacs as saying that under the newly outlined rules, which are now open to a 75-day feedback period, around half of flight delays and more than two-thirds of cancellations would still not qualify for compensation.
