IMPROVING AIR PASSENGER RIGHTS
KEY MESSAGES
- Protecting the rights of air passengers is a priority of this Government. The creation of the Air Passenger Protection Regulations (APPR) in December 2019 provided an important framework for travellers’ rights in Canada when air travel does not go as planned.
- Our air sector was incredibly hard-hit by the COVID-19 pandemic. Last summer, as the air sector entered recovery from the pandemic and passenger volumes surged there were challenges that submitted the new passenger rights regime to a previously unimaginable stress test.
- The lessons learned throughout the pandemic, which began shortly after implementation of the APPR, provided the Government with valuable insight, including areas that needed to be strengthened.
- The amendments to the Canada Transportation Act would strengthen Canada’s passenger rights regime, streamline the processes for administering air travel complaints before the Canadian Transportation Agency, and increase air carriers’ accountability.
- By virtue of these changes, air carriers would be required to pay compensation to travellers unless they can demonstrate that a disruption was caused by specific allowable circumstances, which would be predetermined in regulations established by the Canadian Transportation Agency in consultation with the Minister of Transport. Moreover, additional legislative changes would require air carriers to have an internal process in place to deal with claims for compensation within 30 days.
- These legislative proposals would limit the exceptions within the APPR to the requirement to provide compensation for delays and cancellations and provide the Canadian Transportation Agency with the authority to regulate, in consultation with the Minister of Transport, requirements for when baggage is delayed, and to prescribe refunds when there is a Government Travel Advisory.
- While additional resources have been provided to the Canadian Transportation Agency to clear the existing backlog of air travel complaints, the proposed legislative amendments would also overhaul the Agency’s current complaint resolution process to provide timely dispute resolution services to Canadians and help reduce the complaints backlog and allow the Agency to recover the cost of air passenger complaints, which would incentivize airlines to address complaints directly.
- The Canadian Transportation Agency’s enforcement authorities would also be strengthened by allowing it to increase the maximum Administrative Monetary Penalty applicable under the APPR from the current $25,000 to $250,000 for corporations and by providing it with the authority to enter into compliance agreements with air carriers.
- These amendments are a continuation of this Government’s commitment to strengthen air passenger rights and also align with Transport Canada’s core responsibility and commitment to foster an efficient and essential transportation system, implementing rules and policies that promote choice and improved service to Canadian travellers.
- If these legislative amendments go forward, the Canadian Transportation Agency would have the authority to implement the new process for resolving air travel complaints, as well as to initiate the regulatory process to amend the APPR.
- Regulatory changes to address these amendments would be taken by the Canadian Transportation Agency at the earliest opportunity, with a view to completing the regulatory process by early 2024.
- When the Canadian Transportation Agency revisits the APPR, they would be consulting Canadians and air industry stakeholders as per the Government’s established processes. Both Canadians and industry stakeholders would have the opportunity to provide their input and share their views through the Canada Gazette process.