IMPROVING AIR PASSENGER RIGHTS
Q. Why does Canada’s existing air passenger rights regime need to be improved?
Q. What changes are being proposed to strengthen air passenger rights?
A. Changes are being proposed to simplify and strengthen the passenger rights regime and ensure increased accountability and transparency of air carriers. This requires amendments to the Canada Transportation Act to give the Canadian Transportation Agency the authority to create regulations which would require air carriers to provide compensation and a standard of treatment for all delays and cancellations, unless they are able to demonstrate that the situation aligns with a clearly defined exception prescribed by regulations, in which case the carriers would be exempted from the compensation requirements, but required to provide some standards of treatment.
Q. How will these proposed amendments to the legislation improve Canada’s air passenger rights?
A. The proposed amendments would simplify and strengthen the system by removing the complexity and ambiguity of the regime. This would be achieved by making compensation the default for delays and cancellations, unless it is due to an exception that would be prescribed by regulations.
It would allow the Canadian Transportation Agency to streamline its process for addressing complaints, which would increase its ability to provide timely dispute resolution services to Canadians and help reduce the complaint backlog and prevent another one.
Q. When will the new regime come into effect?
Q. Will there be an opportunity for Canadians and industry to weigh in on possible changes to passenger rights regulations? If so, how will this consultation take place?
Multiple stakeholders, such as airlines, airports or consumer groups, have also been directly in touch with the Minister and with his Office, through meetings or correspondences, to provide feedback on potential changes to the passenger rights regime. In November 2022, the Minister hosted the Air Sector Recovery Summit, where stakeholders provided feedback on this matter to him directly.
Q. Are you going to implement a system where the onus is on the air carrier to provide compensation?
A. The proposed measures would impose a greater burden of proof on air carriers by requiring them to pay compensation to travellers unless they can demonstrate that a disruption was caused by specific extraordinary circumstances, which would be predetermined in regulations established by the Canadian Transportation Agency in consultation with the Minister of Transport.
Q. Will air carriers have to provide payment up-front, or will the passenger need to file a request?
A. Like in Europe or in the United States, the passenger would need to file a request with the air carrier. Up-front payment without an application creates a number of logistical challenges for air carriers.
Q. What changes are being proposed regarding the Canadian Transportation Agency’s authorities with respect to the enforcement of the Air Passenger Protection Regulations?
A. While the current maximum administrative monetary penalties can range from $5,000 to $25,000 for each violation of the Air Passenger Protection Regulations, it is proposed to allow the Canadian Transportation Agency to increase the maximum amount to $250,000 for corporations. In addition, it is proposed to provide the Agency with the authority to enter into compliance agreements with air carriers.
Q. Could these measures impose additional costs to airlines, and thus increase fares for passengers?
A. The primary challenge with passenger rights regimes is to strike a balance between protecting consumers on the one hand, and not creating an undue cost burden to air carriers and travellers on the other. While there may be some additional costs to air carriers in implementing this new regime, and sometimes a portion of the costs do get passed on to passengers, the various actions we propose are intended to strengthen Canada’s passenger rights regime and we would ensure that a balanced approach is pursued during the development of the updated regulations and new complaints process.
Q. What is creating the backlog in air passenger complaints to the Canadian Transportation Agency?
A. The backlog is due to the volume of complaints, in part because the regime has been tested by extraordinary circumstances that occurred as a result of the COVID-19 pandemic, including a sudden rapid recovery of demand, as well as a few severe weather events.
The Canadian Transportation Agency is seeing high volumes and demand for its dispute resolution services, mostly for low complexity issues such as carriers’ compliance to tariffs and the Air Passenger Protection Regulations. Under the current legislative scheme, a passenger who files an air travel complaint with the Agency may go through three phases of dispute resolution, including the adjudication phase.
While a limited number of cases proceed to adjudication, the court-like process is resource-intensive, complex, and lengthy. The current backlog of complaints suggests the existing dispute resolution mechanisms are inadequate to achieve timely resolution of complaints, in a cost-effective manner. 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 current Agency’s complaint resolution process to provide timely dispute resolution services to Canadians and help reduce the complaints backlog.
Q. What changes are being proposed to ensure timely air travel complaint resolution?
A. A new process for resolving air travel complaints is being proposed to streamline the way the Canadian Transportation Agency manages these complaints, for both new complaints and for complaints that have been received but no pleadings have been opened, by converting the current three-stage dispute resolution process overseen and approved by Governor in Council-appointed members to a simplified complaint resolution process completed by Agency staff.
Q. Why are you applying charges/fees to the Canadian Transportation Agency’s complaint resolution services?
A. Through this proposal, we would allow the Canadian Transportation Agency to implement charges to cost recover for their various responsibilities attributable under the Canada Transportation Act.
These proposed changes would serve as an additional incentive for the carriers to resolve complaints before they are even referred to the Agency. This change would also ensure that the Agency can shift some of the financial burden from government to industry and offset financial pressures while providing better service to travellers.
Q. While we are strengthening the Air Passenger Protection Regulations for carriers, what about other service providers that can also have an impact on the performance of carriers?
A. There are multiple stakeholders implicated in the air travel journey and the Government of Canada notes the proposal put forward by air carriers as we are always pleased to consider additional improvements as part of a policy discussion. While it is important to note that only air carriers have a direct commercial relationship with passengers, we continue to engage with stakeholders on the matter of shared accountability.
Q. Can we obligate air carriers to more precisely track luggage?
A. There are multiple stakeholders implicated in the delivery of baggage, including airlines, airports, and third-party contractors, as well as different carriers for many itineraries. Most of the time, the handling equipment is under the airport’s control and not the air carriers. Therefore, having a system that tracks all steps as part of the journey would need to involve all stakeholders, including connecting air carriers at foreign airports, which would be extremely difficult to obligate. A real practical solution should come from the industry itself, and we continue to look into this matter in collaboration with the industry.
Q. Are there ways to augment air carriers’ obligations for mishandled baggage?
A. This matter could be addressed as part of the regulatory process. Any change to the regulations would be made with careful consideration of the Montreal Convention, which sets the international standards for lost, damaged and delayed baggage and prescribes the maximum amount that a passenger can claim in an action for damages.
Q. There have been several recent high-profile incidents that received media attention regarding damaged mobility aids. Why are you not addressing these issues as part of these legislative amendments?
A. The Government of Canada is committed to consistently improving the air passenger experience for persons with disabilities and will continue to monitor the Accessible Transportation for Persons with Disabilities Regulations (ATPDR) to identify gaps in protection for these individuals, as appropriate. That said, the objective of these legislative changes is to address systemic issues in the Air Passenger Protection Regulations (APPR) that revealed themselves during the COVID-19 pandemic and which affect the whole travelling public, including individuals with disabilities although not directly targeting them.
Large air carriers operating to, from, or within Canada are subject to the ATPDR, developed by the Canadian Transportation Agency (Agency). The ATPDR includes requirements for the proper handling and transportation of mobility aids, and the measures that must be taken when a mobility aid is damaged, destroyed or lost during transport. These regulations are legally binding requirements and are enforceable by Administrative Monetary Penalties, up to $250,000.
As well, in the context of an accessibility complaint, if the Agency determines that there is an undue barrier to the mobility of persons with disabilities or determines that a complainant has been adversely affected by a contravention of the ATPDR, it may award compensation for pain and suffering and may also award compensation if the undue barrier or contravention of the ATPDR is the result of a willful or reckless practice. Persons with disabilities who experience barriers to their mobility can seek recourse by filing an application with the Agency.