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Airline passengers may get compensation for delays, cancellations and overbooking

Transport Minister Marc Garneau speaks at a press conference on the federal government’s proposed passenger bill of rights in Ottawa on Dec. 17, 2018.
Transport Minister Marc Garneau speaks at a press conference on the federal government’s proposed passenger bill of rights in Ottawa on Dec. 17, 2018.

If you’re bumped off a flight next summer because it was overbooked, you could receive $2,400 for your troubles.

After months of public consultation, the Canadian Transportation Agency has released the first draft of regulations that will spell out what rights airline passengers have when it comes to delays, overbooking and cancellations.

Passengers that are denied boarding because of overbooking could be compensated up to $2,400, according to the proposed rules. Those facing delays or cancellations that are within an airlines control and not safety-related could receive up to $1,000.

Exact compensation amounts would depend on whether the flight is with a large or small carrier, and the length of the delay at arrival. For example, if you arrive three to six hours after your flight is scheduled to land, you would be eligible for $400 compensation from a large airline, and $125 from a small one. If the delay is more than nine hours, you would receive $1000 from a large airline, and $500 from a small carrier. Passengers would have 120 days to file a compensation claim, and airlines would have 30 days to respond. Carriers can offer vouchers or rebates, but passengers will have the right to request cash instead.

The proposed rules will also require that airlines communicate with fliers in a clear way, providing the reason for cancellations or delays, as well as provide passengers with food, drink and accommodation when flights are delayed. Airlines will also be required to allow passengers to leave an airplane if a flight is delayed on the tarmac for over three hours.

The regulations were drafted by the Canadian Transportation Agency (CTA), an independent regulator that resolves disputes related to air, rail and marine transportation. The CTA launched a three-month consultation in May, discussing air passenger rights with consumer rights groups, the airline industry and the broader public.

“Except in circumstances which are beyond their control, we’re going to make sure that airlines treat their passengers with the respect they deserve and live up to their commitments,” Transport Minister Marc Garneau said at a news conference in Ottawa on Monday.

“These regulations establish clear and consistent standards of treatment. We’re proud to have made such progress in strengthening air passenger rights for all Canadians.”

Other aspects of the proposed regulations include:

  • “Rebooking and refund entitlements” for passengers and, in some cases, requiring airlines to use competing carriers to get passengers to final destinations.

  • Compensation for lost or damaged baggage

  • Clarity on policies around transporting musical instruments

Airlines could face up to $25,000 in penalties for non-compliance with the proposed regulations.

Ian Jack, a spokesperson with the Canadian Automobile Association (CAA), said the rules offer positive changes to a system that is currently not working for passengers. However, he added that there are some concerns about what could be a large exemption for safety and maintenance issues. Carriers are required to compensate passengers for delays due to issues that are “not safety-related”, which Jack says is a potential loophole.

“There’s a big difference between an engine falling off the wing and, let’s say, one of the overhead bin latches not closing completely,” Jack said.

“We think there should be a tighter definition of what constitutes a maintenance issue.”

The new regulations will be published in the Canada Gazette on Saturday, and the public will have 60 days to weigh in on the rules. Once approved, the final rules will be published again in the Gazette. They are expected to come into force next summer.

“We’re committed to finalizing a set of minimum airline obligations that are clear, fair and balanced as soon as possible,” CTA chief executive and chair Scott Streiner said in a news release.

“We look forward to getting a last round of feedback from Canadians over the next two months.”

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