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Global

Canada Is Drafting Flight Disruption Compensation Rules

By Dawit Habtemariam / August 31, 2018 / Contact Reporter
Business Travel News on X

The Canadian Transportation Agency has ended its three-month public consultation phase for new air passenger-protection regulations. The regulations were born in May, when Canada's parliament passed the Transportation Modernization Act, which included a mandate for the CTA to draft new regulations defining airlines' obligations to passengers, including in the event of flight delays and cancellations.

Currently, airlines are not required to compensate travelers for such disruptions, though at their discretion,they provide passengers with discounts towards future travel.

Some of the 6,407 comments submitted during the public consultation phase recommended the Canadian government adopt regulations similar to the European Union's Flight Compensation Regulation EC 261/2004. AirHelp, a firm that helps passengers claim compensation for flight disruptions, has released its own list with recommendations similar to EC 261/2004. AirHelp also proposed a public database, maintained by the CTA, into which airlines would report flight disruptions, enabling passengers to verify their claims, AirHelp chief legal officer Christian Nielsen told BTN.

The CTA, meanwhile, has been considering a controversial regulation: whether to exempt airlines from compensation for delays and cancellations due to mechanical malfunctions. Nielsen said airlines will exploit this exemption. "Technical problems are the most-used excuse for long delays and cancellations, so the vast majority of cases will certainly not lead to compensation for passengers," said Nielsen.

The CTA will consider the public feedback as it drafts regulations, which will need to be approved by the CTA and governor in council. The CTA aims to have the regulations in full force by early 2019.

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