What do the proposed passenger rights changes mean for travellers?

After the proposed overhaul of Canada’s passenger rights charter, travellers may wonder how the new provisions could help them receive compensation and avoid unfair fees from airlines.

On April 24, Transport Minister Omar Alghabra told reporters in Ottawa that new measures will both toughen penalties and restrict “loopholes.”

"This means there will be no more loopholes where airlines can claim a disruption is caused by something outside of their control for a security reason when it's not," Alghabra explained.

"And it will no longer be the passenger who will have to prove that he or she is entitled to compensation. It will now be the airline that will need to prove that it does not have to pay for it."

The Liberals’ legislation proposal comes amid a massive backlog of passenger complaints including airport congestion, lost luggage and flight disruptions. The new provisions, tabled in the House of Commons as part of the larger budget bill, would also increase penalties on airlines and quicken the customer complaint process. But how do these changes differ from the processes already in place?

CURRENT COMPENSATION POLICIES

A traveller is currently entitled to between $125 and $1,000 in compensation for delays up to three hours or more, unless the disruption is a result of events beyond the airline’s control. Such factors ambiguously include weather and safety or mechanical issues, and the compensation amount depends on the duration of the delay and the size of the carrier.

Alghabra said that airlines often refer to reasons beyond their control when delays or baggage problems are their responsibility.

Policy amendments would increase the maximum penalty for airline violations to $250,000, and hold airlines to regulatory costs of complaints. New provisions would also enforce a 30-day deadline for airlines to respond to complaints and determine a decision for customers. (The penalty for airlines breaching this timeline is not yet known.)

According to Canada’s Transportation Agency website, the proposed regulations would apply to all flights “to, from and within Canada,” including connecting flights.

Other modifications include making food and water a mandatory service during flight disruptions, and establishing refund requirements for baggage delays.

AIRLINES DENOUNCE POLICY

In a statement from the president of the National Airlines Council of Canada (NACC), which represents the country’s largest carriers, Jeff Morrison said “no airline should be penalized for adhering to the highest standards of safety, whether that is due to weather, mechanical issues or other safety related constraints.”

Morrison suggests responsibility for passenger experience extends beyond airlines, and should include airports, too.

When questioned by reporters, Alghabra addressed claims that the ministry is unfairly targeting airlines with these new measures.

“These measures are not meant to demonize airlines,” he said. “Thousands of airline employees go to work every day committed to doing their best to provide excellent service to their customers. Airline employees have been going through an unprecedented period of challenges, and I know that they are doing their best under extraordinary circumstances.”

The Canadian Transportation Agency currently has a backlog of more than 45,000 complaints, with an average of 18-month review time per case, explained Alghabra. The Liberals hope the increased maximum penalty and 30-day deadline to deal with complaints would improve the airlines’ level of service.

If these provisions are passed, the Canadian Transportation Agency would draft a list of exceptions for passenger compensation, which would include bad weather or factors that really do constitute beyond the airline’s control. 

Nearly 4 out 5 passengers fail to pursue EU flight delay compensation claims due to a lack of knowledge.

For more details on Regulation (EC) No 261/2004 regarding passenger rights info in case of "US Delayed or Cancelled Flights"