Feds spending $76M to deal with air travel complaints, pledge to close compensation loophole

Transport Minister Omar Alghabra says the federal government will close a loophole that allows airlines to deny customers compensation for cancelled flights.

He said the reform will come as part of an overhaul of passenger rights, reiterating it will be tabled in Parliament in the spring.

Earlier this year, Alghabra said Canadians can expect to see the airline passenger bill of rights strengthened, but he didn’t elaborate on what the changes would be, only saying, “you’re going to see the new proposal during the spring session,” adding that they identified areas of improvement and are working on them.

At a news conference on Tuesday, Alghabra was asked if he will end an exemption that lets carriers reject compensation claims by citing safety.

“The short answer is yes. We are working on strengthening and clarifying the rules to ensure that we make a distinction. Obviously, we don’t want planes to fly when it is unsafe to do so, but there are certain things that are within the control of the airlines, and we need to have clearer rules that put the responsibility on the airlines when it is their responsibility,” he said.

The compensation loophole in Canada’s Air Passenger Protection Regulations does not exist under European rules.

The latter require compensation on top of refunds if an airline cancels a flight for any reason that falls under its control, which covers most situations except for strikes, extreme weather or war. In Canada, a last-minute cancellation or significantly delayed flight triggered by an event within the airline’s control also triggers a refund — except in the case of safety-related concerns.

Alghabra’s pledge came during a press conference at Toronto Pearson airport, where he promised $76 million over three years to reduce the backlog of complaints at the Canadian Transportation Agency (CTA).

He said the money will allow the transport regulator to hire 200 more employees who can chip away at the 42,000 complaints currently filed there.

Currently, there are around 42,000 complaints waiting to be dealt with.

“The events of the past few months have resulted in a record number of complaints to the [CTA], and these complaints must be answered as quickly as possible. Since 2019, our government has always provided more resources to the CTA to help implement the passenger bill of rights, but it’s clear that even more resources are now needed to clear the backlog,” Alghabra said.

Related: Pearson taking steps to limit flights during March Break, summer months

The announcement comes after the government granted an additional $11 million to the agency in last year’s budget — shortly before travel chaos erupted over the summer as flight demand surged, prompting another wave of complaints.

In September, the CTA implemented a change in which airlines are now required to rebook a passenger affected by a cancellation or a lengthy delay due to a situation outside the airline’s control on a flight leaving within 48 hours of the departure time indicated on the passenger’s original ticket.

If the airline cannot provide a confirmed reservation for a flight leaving within this 48-hour period, it will be required to provide, at the passenger’s choice, a refund or re-booking.

However, advocates say the change is still leaving travellers vulnerable, especially those expecting to travel for short-time periods.

With files from CityNews reporter Erick Espinosa