The Supreme Court of Canada (SCC) has rejected a bid by a consortium of airlines to overturn elements of the air passenger protection rules implemented by Canada in 2019.
The SCC ruled that airlines that fly in and out of Canada can be required to provide passengers with standardized compensation on some international flights for delays within their control.
Airlines including Air Canada, Porter, Air France and Lufthansa had challenged the protections, arguing that the Montreal Convention already provided passengers with an avenue to seek damages.
The 2019 regulations mandate standardized compensation for delay, cancellation or denial of boarding based on the time by which a passenger's arrival at their final destination is delayed. Its aim was to enable passengers to avoid the onerous legal process to obtain compensation set out in the Montreal Convention.
Under the regulations, air passengers are to be compensated with up to $2,400 if they were denied boarding because a trip was overbooked. Compensation for delays and cancelled flights is up to $1,000, while travellers can also receive up to about $2,300 for lost or damaged luggage.
Strikes will take place throughout Europe in September (Photo Credit: Courtesy AdobeStock)
"As long as the disruption in question occurred for a reason within the carrier's control and was not required for safety purposes, the compensation is fixed," the SCC said in its ruling. The SCC added that there was "no conflict" between the Canada Transportation Act and the Montreal Convention.
The Canadian Transportation Agency (CTA), which adjudicates passenger claims, says the decision "brings certainty to Canada's passenger protection regime and confirms air carriers' minimum obligations to pay compensation for flight disruptions and lost and damaged baggage."
While some consumer advocates are calling the SCC decision a win, it remains in question how quickly passengers will get refunds or compensation for delayed flights, damaged luggage or other claims.
The most recent statistics provided by the CTA shows that since April 1st, 2019, more than 150,000 complaints have been filed with the agency, including 22,309 so far this year. The agency is still dealing with a backlog of about 80,000 previously filed cases, some of which date back years.
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