Air Canada is testing a new way to resolve passenger compensation disputes, launching a pilot program using Alternative Dispute Resolution (ADR) for claims filed under Canada’s Airline Passenger Protection Regulations (APPR).
The airline said it is inviting a randomly selected group of customers with existing complaints before the Canadian Transportation Agency (CTA) to voluntarily transfer their cases to an independent third-party provider. The goal: determine whether ADR can deliver faster outcomes than the current system.
Under the pilot, claims will be reviewed by Canada Aviation Dispute Resolution, an independent firm specializing in air travel complaints. Decisions are expected within 90 days once both sides submit complete information.
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“Everyone wants a swift and satisfactory resolution when disputes arise over travel disruptions," said Marc Barbeau, Executive Vice President, Chief Legal Officer and Corporate Secretary at Air Canada.
"To achieve this, we are proposing the use of ADR in Canada for air travel, an independent, fair and effective method to quickly and fairly resolve air passenger claims that is widely used in Europe. As a first step, we have designed a limited pilot for a randomly selected group of our customers to transfer information from their CTA claim to ADR without any obligation to accept the result or give up their spot in the CTA’s queue.
“For customers, based on experience elsewhere, ADR is expected to deliver a fast, impartial, and reasoned response to their claims. For airlines, it has the potential to address customer concerns, bring efficiency and consistency to the process, and reduce issues associated with unresolved claims by shortening the adjudication timeline.”
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Air Canada said it consulted with Transport Canada and the CTA in developing the pilot.
How the pilot works
The airline has invited 500 customers to participate. Those who opt in can have their existing CTA claim information automatically transferred to CADR, with no need to resubmit documents.
An arbitrator will review submissions from both the customer and the airline, with customers given an opportunity to respond before a decision is issued. While decisions are binding for Air Canada, customers are not required to accept the outcome and can continue through the CTA process if they choose.
Participation is free, and customers retain their place in the CTA queue regardless of the ADR outcome.
Air Canada said it will evaluate the pilot’s effectiveness and consult with government on potential next steps once the test concludes.
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