(Montreal) The federal government intends to correct a regulatory loophole that allows airlines to deny their customers compensation for certain canceled flights, Transport Minister Omar Alghabra announced on Tuesday.
This change will be part of an overhaul of passenger rights which will be tabled in Parliament this spring, he explained during a press conference.
Asked if he would end the exemption that allows carriers to reject compensation claims citing safety concerns, Alghabra said yes.
“The short answer is yes. We are working on strengthening and clarifying the rules to make sure we make a distinction,” he said.
“Obviously we don’t want planes flying when it’s not safe to do so. But some things are under the control of the airlines, and we need to have clearer rules that hold the airlines accountable when it is their responsibility. »
Mr Alghabra was speaking at a press conference at Toronto’s Pearson airport on Tuesday morning, during which he pledged additional funding of $76 million to reduce the backlog of complaints at the Transportation Agency of Canada (OTC).
The money will allow the transportation regulator to hire 200 additional staff who can whittle down the list of 42,000 complaints already filed with the CTA, he said.
“The backlog is huge. »
The announcement comes after the government gave the agency an additional 11 million in last year’s budget – shortly before travel chaos erupted over the summer as demand for flights was increasing, prompting a new wave of complaints.
Gabor Lukacs, president of the advocacy group Travelers Rights, expressed skepticism that the new funds could allow progress in the backlog.
“The government is throwing money out the window,” he said. It won’t improve the app’s misfires per se. »
Minister Alghabra hinted at further changes to come in a revamped passenger rights charter, including potential reforms to the regulator’s role as an investigative and enforcement body.
“We are looking at strengthening the rules, as I said, and perhaps increasing the powers that the OTC has. But I leave it to the CTA to exercise its judgment and know when and how to impose these fines,” Alghabra told reporters.
Best frame in Europe
The agency has a dual mandate as an independent quasi-judicial tribunal and regulatory body, but some observers say it doesn’t go far enough to punish violations under that second role.
They also note that the compensation loophole in Canada’s Air Passenger Protection Regulations does not exist in European rules.
European authorities require compensation in addition to refunds for flight cancellations or long delays, except in “extraordinary circumstances which could not have been avoided” such as extreme weather conditions, war and certain strikes.
In Canada, a flight canceled within 14 days of departure or delayed three hours or more due to an event within the airline’s control also results in a refund of $400 to $1000 for major carriers, but not in the event of security-related issues.
John Lawford, executive director of the Public Interest Advocacy Centre, argued that Canada should adopt the European framework.
“The European model basically says that if you delay someone, you cancel their flight or deny them boarding, unless you can prove that a volcano erupted or there was a earthquake. land and the track broke in two, you pay compensation,” he explained.
Discourage Carrier Inaction
Minister Alghabra claimed another element of the passenger rights overhaul would see Ottawa create an “incentive” for airlines to deal directly with customer complaints rather than simply dismiss them in the hope the traveler gives up.
“There will be a deterrent for airlines […] to defer to the OTC,” he said, adding that details would emerge with legislation this spring.
As things stand, airlines have more to gain from resisting compensation claims, because even if they are ultimately found to be at fault by the regulator, the CTA has only issued a handful of mild penalties for violations, Mr. Lawford pointed out.
“They should be fined for every claim they (wrongly) denied, up to $25,000 per claim, and I don’t see (OTC) doing that,” he said. lamented, stating that there had been enforcement actions since the fall.
“It needs to be done consistently, otherwise it’s more cost effective to pay the few irritating cases that manage to make a successful case to the OTC 18 months later than to pay compensation for everyone on that flight. »
Airlines are just beginning to emerge from a long financial crisis due to travel restrictions during the COVID-19 pandemic. Air Canada posted a profit in the quarter ended Dec. 31 for the first time since 2019 as demand for domestic and international travel continued to rise.
Carriers were ill-prepared for the travel surge last summer, as well as the holiday season this winter, with labor shortages in roles ranging from pilots to baggage handlers to agents security, which has exacerbated disruption at airports – and sparked even more complaints from passengers.