The Supreme Court of Canada has ruled that airlines must compensate travelers for international flight disruptions based on the Canadian Transportation Agency’s rules. This decision upholds Canada’s Air Passenger Protection Regulations (APPR) and creates a standardized compensation scheme for delays, cancellations, and lost baggage. The case centered around whether the APPR could coexist with the Montreal Convention, an international standard signed by Canada in 2001. While the APPR provides a standardized compensation scheme, the Montreal Convention allows passengers to argue in court for individual compensation if they feel wronged. Airlines, including Air Canada and Porter Airlines, challenged the APPR, arguing that they extended beyond the CTA’s powers and conflicted with the Montreal Convention. However, the Federal Court of Appeal and, ultimately, the Supreme Court, upheld the regulations as being in alignment with the Montreal Convention.
Under the federal rules, passengers can receive compensation of up to $2,400 if they are denied boarding due to flight bumping, delays, and other payments for canceled flights warranting up to $1,000, and compensation of up to $2,300 for lost or damaged baggage. Since the APPR came into force five years ago, the Canadian government has taken steps to tighten regulations prompted by scenes of airport chaos and customer complaints. Amendments to the law have closed loopholes that allowed airlines to avoid compensation payments and worked to establish a more streamlined complaints resolution system. The government has also increased penalties for airline violations, with a $250,000 maximum fine aimed at encouraging compliance. Additional amendments, such as placing the regulatory cost of complaints on carriers, are yet to take effect but are aimed at encouraging airlines to improve their service to reduce grievances.
The Supreme Court’s ruling reinforces the rights of air passengers in Canada and ensures that airlines must compensate travelers for disruptions to international flights based on the APPR. The decision affirms that the regulations do not conflict with the Montreal Convention and that passengers have the right to standardized compensation for delays, cancellations, and lost baggage. The APPR provides a framework for compensation based on specific circumstances, while the Montreal Convention allows for individualized compensation if passengers feel wronged and are successful in arguing their case in court. Airlines challenging the APPR, including Air Canada and Porter Airlines, argued that the regulations extended beyond the CTA’s powers and were inconsistent with international standards. However, the courts have upheld the regulations as being in line with the Montreal Convention and ensuring passenger protections.
Since the implementation of the APPR five years ago, the Canadian government has taken steps to tighten regulations and ensure that airlines comply with compensation requirements for flight disruptions. Amendments to the law have addressed loopholes that allowed airlines to avoid paying compensation and have established a more efficient complaints resolution system. Penalties for airline violations have been increased, with a maximum fine of $250,000 aimed at incentivizing compliance and improving customer service. Additional amendments, such as shifting the cost of complaints onto carriers, aim to encourage airlines to improve their service and reduce the number of grievances. Despite these efforts, the complaints backlog at the country’s transport regulator continues to grow, highlighting the ongoing challenges faced by air travelers and the need for continued oversight and enforcement of passenger rights.
Overall, the Supreme Court’s ruling on airline compensation for international flight disruptions reaffirms the importance of passenger protections in Canada and ensures that travelers are fairly compensated for delays, cancellations, and lost baggage. The decision upholds the APPR as a standardized compensation scheme that aligns with the Montreal Convention while also allowing for individualized compensation in certain circumstances. Airlines have challenged the regulations, but the courts have ruled in favor of protecting passengers’ rights and holding airlines accountable for disruptions. The Canadian government has taken steps to strengthen regulations and close loopholes that allowed airlines to avoid compensation payments, as well as implementing penalties to encourage compliance. Moving forward, continued oversight and enforcement will be essential to ensure that airlines uphold their obligations to compensate travelers for flight disruptions and provide a high standard of service to air passengers in Canada.
