Location: National
Key Messages:
- Protecting the rights of air passengers is a priority of the Government of Canada. The creation of Canada’s air passenger rights regime in 2019 provided an important framework for travellers’ rights when air travel does not go as planned.
- The regime has been severely tested by the pandemic as well as the increase in passenger demand in 2022, revealing ambiguity on the coverage of the regulations, resulting in an excessive number of refusals to compensate by airlines, and many appeals to the Canadian Transportation Agency (CTA).
- The lessons learned throughout the pandemic provided the Government with valuable insight, including areas that needed to be strengthened and amendments to the Canada Transportation Act have been introduced in the Budget Implementation Act, 2023, No.1, which received Royal Assent in June 2023.
- These changes will strengthen Canada’s passenger rights regime, streamline the processes for administering air travel complaints before the CTA, and increase air carriers’ accountability.
- When the CTA revisits the Air Passenger Protection Regulations (APPR), industry stakeholders including air carriers, airports, and other actors, will be consulted as per the Government of Canada’s established process.
Summary of Issue / Background:
- The APPR came into force in December 2019, and established robust entitlements for passengers flying to, from, and within Canada.
- The regulations are administered and enforced by the Canadian Transportation Agency (CTA), which has the powers of a court to determine carriers’ specific obligations based on passenger complaints.
- The objective of the regulations is to create a more predictable and balanced approach to ensure that: passengers 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 COVID-19 pandemic as well as the rapid surge in passenger volumes when travel restrictions were lifted submitted Canada’s air passenger rights regime to an unimaginable stress test. Ambiguity and a lack of clarity in the framework led to a significant and growing backlog of complaints with the CTA.
- The Government of Canada has taken steps to ensure that passenger complaints are addressed as quickly as possible and is continuing to work with the CTA to address its financial requirements to ensure it has the appropriate mechanisms and resources to carry out its mandated functions, specifically regarding the APPR.
- In April 2023, the Minister of Transport announced amendments to the Canada Transportation Act to strengthen the air passenger rights regime, simplify the complaint resolution process at the CTA, and increase air carriers’ accountability. These were introduced as part of Bill C-47, the Budget Implementation Act, 2023, No.1, which received Royal Assent on June 22, 2023.
- The amendments will allow the CTA to modify its regulations to:
- make compensation mandatory for all disruptions, unless the disruption was caused by very limited circumstances that will be specifically defined by regulations;
- remove exemptions to air carriers’ compensation obligations based on broad categories of disruptions (e.g., disruptions outside/within the control of airlines or required for safety);
- make standards of treatment, such as the provision of food and water, mandatory for all flight disruptions; and
- establish requirements for delayed baggage and prescribe parameters around refund requirements as a result of a travel advisory issued by the Government.
- The amendments will also:
- replace the current process for resolving air travel complaints, which includes an adjudication process by Governor in Council-appointed members, with a more simplified process to ensure travellers get quicker decisions;
- require air carriers to establish an internal process for dealing with air travel claims within 30 days;
- broaden the authority of the CTA to set fees and charges to recover its costs; and
- enhance the CTA’s enforcement powers with respect to the air transportation sector by allowing them to increase the maximum amount of Administrative Monetary Penalties (AMPs) applicable to the APPR for corporations and by providing the CTA with the authority to enter into compliance agreements with air carriers.
- New regulations are expected to be in place at the earliest opportunity. As of September 30, 2023, the CTA will begin to resolve complaints through the new complaint resolution process.