The Canadian government’s plan to charge airlines nearly $800 for every denied air passenger protection claim “lacks any common sense,” says the head of WestJet airlines.
Writing on his LinkedIn, WestJet CEO Alexis von Hoensbroech said the proposed fee is “an invitation to game the system” and amounts to a “free spin on the roulette wheel.”
As part of its attempt to improve the Air Passenger Protection Regulations program for consumers, the CTA recently announced it plans to impose a fixed fee of $790 per eligible closed complaint by one of the authority’s complaint resolution officers, a fee that airlines would have to pay even if the complaint is dismissed and the airline isn’t required to issue compensation.
“This fee represents 60% of the total costs (direct costs, internal services costs and central costs) of the tasks related to processing and closing eligible air travel complaints,” the CTA said.
The agency has given airlines and the public until 21OCT to respond to the proposal.
“This fee exceeds the average payout for a valid APPR claim and is more than triple the average domestic airfare,” von Hoensbroech said. “In what way does this drive improvement, justice, more competition or affordability for Canadians?
“I surely endorse the right for passengers to challenge APPR decisions that airlines take and I respect the important work the CTA has to do to adjudicate these complaints. But charging a processing fee that is higher than an average APPR compensation is contrary to any common sense and nothing but an invitation to game the system,” he said.
“This free spin on the roulette wheel may encourage complaints to be submitted even if they are unsubstantial in the hopes that airlines will settle to avoid such an outsized processing fee. This will not just cause a flood of additional complaints to the CTA, it will also further increase the cost of the already very expensive system at the expense of the travelling public who would eventually have to cover this through even higher air fares.”
Von Hoensbroech also raised an eyebrow at a CTA statement that says it costs $1,300 to process each airline complaint.
“The CTA should focus on its own inefficient operations. With more than 70,000 passenger complaints pending - largely due to a confusing APPR system - processing times often take years. The lack of service standards and transparency contrasts sharply with airlines, who meet their obligation of responding to claims within 30 days,” he said.
“I urge the federal government to guide the CTA toward a more rational approach, ensuring that airlines can operate effectively in Canada, where affordable air connectivity is essential.”
Air Canada spokesman Peter Fitzpatrick recently told the Globe and Mail that the proposal is “concerning.” He noted the $790 fee is more than the average revenue Air Canada makes on a one-way ticket.
“Only airlines would be required to pay the fee,” CTA spokesman Jadrino Huot told the Globe. “The fee applies for all eligible air travel complaints for the purposes of dispute resolution, whether the decision is in favour of the passenger or the airline, as it is linked to the cost of processing complaints, not the outcome of the complaints.”
The fee would also apply to 45,000 complaints received before 30SEP, 2023.
