LOCATION: National
Issue/Source: Backlog of more than 27,500 complaints
Date: November 30, 2022
SUGGESTED RESPONSES
- The Agency is experiencing a surge in passenger complaints for its dispute resolution services as a result of unique circumstances, including the COVID-19 pandemic and the rapid return of air travel in the spring and summer 2022.
- Temporary funds for one-year were announced in Budget 2022 to increase the Agency's complaint processing capacity.
- The Agency plays an important role, and the Government of Canada continues to work closely with the organization to ensure it has adequate funding to deliver on its mandate to Canadians, including consumer protection for air travellers.
- In addition, the Government of Canada continues to work with the Agency to improve the complaint treatment process, as well as assessing the effectiveness of the Air Passenger Protection Regulations.
IF PRESSED
- The Agency has processed over 25,000 passenger complaints by different dispute resolution methods since the Air Passenger Protection Regulations came into effect.
- The temporary funds are intended to allow the Agency to process up to 12,250 complaints in 2022-23.
BACKGROUND INFORMATION
- Over time, the Agency's mandate has become more relevant than ever before and changes have been made to provide Canadian travellers with protection. The Air Passenger Protection Regulations (APPR) – which were made pursuant to the Transportation Modernization Act – establish robust entitlements for passengers flying to, from and within Canada. The Accessible Canada Act and the complementary provisions of the Accessible Transportation for Persons with Disabilities Regulations (ATPDR), are significant steps towards making sure persons with disabilities are treated with dignity, and barriers are removed when using federal modes of transportation.
- The APPR came into force in December 2019, with the objective of creating a more predictable and balanced approach aiming to ensure that passenger’s know their rights, air carriers understand their obligations, operators do not face an undue burden or lose competitiveness that could negatively affect ticket prices for consumers, and proper complaint resolution and enforcement mechanisms are provided.
- The Agency continues to experience a high demand for its Dispute Resolution Services Program related to the air travel experience. The COVID-19 pandemic and the increase in passenger demand has tested the effectiveness of Canada’s passenger rights regime, exposing the complexity and lack of clarity around compensation and driving a huge increase in complaints to the Agency.
- To successfully implement these new regimes and keep up with the ever-increasing demand for its dispute resolution services, the Agency sought a one-year renewal of $11.5M to support [ Redacted ] the Agency's Dispute Resolution Program.
- While the APPR sets minimum standards of treatment and compensation that must be provided to passengers, it is challenging for passengers to know what entitlements they are owed, and they are turning to the Agency to seek recourse as carriers reject compensation claims based on such factors as degree of control over a situation, and whether it is safety-related.
- As a result, the Agency continues to experience a high demand for its Dispute Resolution Services Program and faces challenges stabilizing its operations due to increased responsibilities related to its mandate of consumer protection for air passengers and the transportation of persons with disabilities. It is currently projected to take around one year before most air passenger complaints can be initially addressed by the Agency.
- The Agency has already augmented its capacity to address complaints based on a combination of additional funding and internal process efficiencies. They were capable of processing 5,000 complaints per year in 2019, and now are able to process 12,250 per year.
- The Government of Canada has taken steps to ensure that passenger complaints are getting addressed as quickly as possible and is continuing to work with the Agency to address its financial requirements to ensure it is resourced appropriately to carry out its mandated functions, specifically with regard to the APPR.