Air Canada, Porter and foreign carriers are challenging Air Passenger Protection Regulations in Canada's Supreme Court on Monday. The regulations, which became effective in 2019, outline how airlines should treat customers when their flights are disrupted or luggage is lost.
Canadian Transportation Agency (CTA) rules state airlines must provide compensation to pax whose flights are delayed or cancelled within certain time periods, as well as food, lodging, and compensation for lost or damaged luggage.
According to a report from The Globe and Mail, "The airline industry, led by the International Air Transport Association, lost its appeal of the rules before the Federal Court of Appeal in 2022, except for some luggage provisions. The Supreme Court of Canada agreed to hear the industry’s appeal of that decision in a hearing scheduled for Monday (MAR25) in Ottawa.”
The airlines argue that Canada has no right to impose rules on foreign carriers, and that the compensation amounts exceed actual losses. The Canadian government, on the other hand, says the regulations ensure fair and consistent treatment of pax.
The current complaint resolution system has been criticized as being unfair, complicated, and slow. As a result, the government has proposed stricter rules to prevent airlines from avoiding responsibility for delays.
The CTA currently has a backlog of 70,000 files, the agency said last week.
Under Canadian airline regulations, passengers are entitled to a refund or a seat on the next available departure, or with another airline if their flights are cancelled. Pax are also eligible for compensation if the delay is within the airline's control. The compensation amount varies based on the delay's length and airline size, reaching up to $1,000 for delays lasting nine or more hours.
"The proposed changes will remove the 'safety' loophole that airlines use to avoid giving passengers compensation, free food, and other assistance in some cases," The Globe and Mail said.
