Government unveils tough new rules to protect airline passenger rights

[Airband]

Government unveils tough new rules to protect airline passenger rights

New bill boosts fines and closes loopholes allowing airlines to wiggle out of compensating passengers

Mon Apr 24, 2023 - The Toronto Star
By Josh Rubin - Business Reporter

Quote

“To call this a kangaroo court would be doing a disservice to kangaroos,”

You’re guilty until proven innocent.

That’s the message the federal government is sending to airlines as it unveils new legislation to deal with passenger complaints.

In a news conference Monday, federal Transport Minister Omar Alghabra said the government had a simple goal as it put together changes to the Transportation Act: give airlines less wiggle room for getting out of compensating passengers.

“It’s clear there are some loopholes that needed to be closed,” said Alghabra as he discussed the changes, which are in an omnibus budget bill that received first reading in the House of Commons last Thursday.

Among the targets? A widely criticized loophole that has allowed airlines to avoid paying compensation by claiming the cause of a delay or cancellation was outside their control, and necessary for safety purposes.

Previously, passengers had to make their case that a delay or cancellation was within the airline’s control. Now, the burden of proof will shift to the airlines if the legislation is passed.

“It is presumed to be within the carrier’s control and not required for safety reasons unless the carrier proves the contrary,” said the legislation, which also envisions a shorter, 90-day time frame for resolving passenger complaints. The current complaints process with the Canadian Transportation Agency, at least on paper, is supposed to take 120 days.

Shifting the burden of proof from passengers to airlines is a matter of fairness, said Alghabra.

“There’s a significant imbalance in power between airlines and passengers,” he said.

The legislation also increases the maximum fines the CTA can levy on airlines to $250,000 from $25,000.

The association representing Canada’s major airlines criticized the legislation, saying it won’t make anything better for passengers.

“Canada’s airlines are disappointed that the federal government has not focused its legislation on measures that would improve the overall air passenger experience, namely shared accountability, including requiring better data and performance-indicator sharing from all entities in the air travel system,” Jeff Morrison, president and CEO of the National Airlines Council of Canada, said in an emailed statement.

The legislation also revealed more details proposed by the federal government in its March budget, including shifting the CTA complaints process into a mediation structure instead of its current quasi-judicial form.

The government had come under heavy pressure to respond to the chaos that unfolded in airports as COVID-19 travel restrictions were gradually lifted. Backlogs of complaints about delays and cancellations, lost or damaged bags and other passenger concerns swamped the CTA.

With the proposed changes, the government is on the right track, at least in theory, argued John Gradek, a former Air Canada executive and head of McGill University’s Global Aviation Leadership program.

“This is something that the airlines have been pushing back against hard,” said Gradek, adding that the changes would bring Canada’s Air Passenger Protection Regulations more in line with stricter European regulations. “This brings us closer to Europe, no question.”

Still, Gradek said passengers shouldn’t get their hopes up that the new complaints process will be much quicker. There doesn’t appear to be consequences if time lines aren’t met, Gradek said.

“There’s no accountability there, which is disappointing,” Gradek said.

NDP transportation critic Taylor Bachrach agreed.

“I don’t see anything in there that would hold the CTA accountable if they don’t meet those time lines,” said Bachrach. “We’re going to be likely to see more passengers sleeping on floors and out thousands of dollars.”

Bachrach said airlines will still be able to get off the hook for compensating passengers.

“I’m not confident this is going to make a significant difference for Canadian air passengers,” said Bachrach, who said the government should have followed the approach in his private member’s bill, which he argues gives the airlines even less wiggle room.

“Canadians have been frustrated by this process at every turn. The government should be standing with passengers, not with big airlines,” Bachrach said.

Passenger rights advocate Gabor Lukacs was even harsher, calling the proposed changes “smoke and mirrors.”

“This is the government wanting to be seen doing something rather than actually doing something,” said Lukacs, adding that he had no confidence that the new process will be quicker than the current one.

“Ninety days is the time line on paper. But right now the time lines are 120 days, and people are waiting 18 months,” said Lukacs.

The proposed new CTA complaints system also clamps down on how much information is released during the process, and doesn’t really define criteria for evidence or proof.

“To call this a kangaroo court would be doing a disservice to kangaroos,” said Lukacs. “I’d still recommend people go to small claims court for their complaints. This is smoke and mirrors.”

[CanadaEH]

I hope the airlines retaliate in some form. This **bleep** is ridiculous. 

[Airband]

Authors of their own misfortune.

[Turbofan]

Won’t fix anything.  The airlines don’t control enough of the infrastructure.

The parts of the infrastructure left out of accountability can individually bring the entire operation to a snails pace or stopped.

CATSA, NAV Canada, Airport Authorities, Customs.

Last summer we had days when Vancouver Centre would not accept aircraft from the East.  Everyone was flying around BC.  I did a couple of YYC to YVR via directly south into Montana and then through Washington State.  Back into BC over White Rock.  An extra 30 min per turn.

Currently Nav Canada is in contract negotiations.  I expect this summer to be a problem.

Inadequate snow removal capacity in YVR this last winter.  No accountability.  Running out of type 2 deice fluid.  No accountability.

YYZ capping the arrival rate this summer because they can’t handle the capacity.  This failure will translate into higher ticket prices.  No accountability.

[Seeker]

What the government, the passengers and Gabor don't realize (or do and won't admit) is that it's a zero sum game.  Any compensation payout to one group of passengers is offset by a corresponding increase in ticket prices for all passengers.  Or, to be honest, the payout will be lower than the increase in ticket price to allow for the overhead costs.

The way I describe it is this:  Now all passengers will be forced to buy what is essentially a lottery ticket.  If they are lucky enough to have a flight disruption they win a big compensation cheque but if they are unlucky enough to have their flight go smoothly they lose the extra $20 added to their ticket.  Do you feel lucky?  Well, do you punk?

I think the airlines should just roll with it.  Figure out how much they would have paid last year if they had been under the new rules and add that amount, plus 50% to every ticket.  Then, run ads saying, "We always pay compensation!"  Pay compensation every time someone sneezes - just make sure it's covered by the "new" ticket price.  Could be a real money-maker.  Goes like the old adage - "when was the last time you ever saw an insurance company lose money?"  Actually, that makes me think - I bet Lloyds of London would be happy to underwrite the whole thing.

 

 

[J.O.]

I’ll take that bet. Talk to industry people who are responsible for finding underwriters. The available pool of capital for underwriting big dollar files like airlines and large real estate properties has dwindled to less than half of what was out there five years ago. Many have a ten foot pole approach to aviation these days and have moved their money into far more profitable areas like pet health insurance.

[Guest1]

too bad that the airlines as a group could refuse the new (guidelines?) until such time as they also took into account the role of airports etc and assigned fines to those parties also.

[Tango Foxtrot]

What ever happened to "Travel Insurance "

 Looking like another cash cow on the horizon.  Wasn't long ago that you didn't get screwed if you wanted to take a bag with you.  Hey for an extra $30 a person we will take care of you if the Airport Service Provider Fs up

[Bobcaygeon]

Admit to admit it or not, the airline industry has done a brutal job in the last 12 months with regards to customer service. For sure there have been 3rd party issues like the airports and CBAA/CATSA adding to the issue but it's pretty damn clear that Comm Ops talked to no one when they built the flight schedules last summer and this winter.  Flight Ops and maintenance knew they couldn't ramp up that quickly and didn't have the human and aircraft resources to maintain it. So did the 3rd party contractors for counters/ramp, etc.

Sometimes you get what you deserve. The costs will get passed back to the customer but no Executive team or BOD will be happy with a huge passenger compensation expense on the their books. Hotel and meal expenses don't jump off the books like cold hard cash does.  

[Airband]

On 5/4/2023 at 10:49 AM, Bobcaygeon said:

Flight Ops and maintenance knew they couldn't ramp up that quickly and didn't have the human and aircraft resources to maintain it.

Canadian airlines gear up for summer travel, but labour shortages pose a risk for passengers

Sun May 07, 2013 - The Globe and Mail
Eric Atikins - Transportation Reporter

Quote

“Unless they reduce their schedule, I do not foresee us having enough pilots for the summer,” 

Airlines are rolling out bigger flight schedules this summer, trying to capitalize on pent-up demand and higher prices, but labour shortages are threatening to spoil the party.

Canada’s air carriers and airports say they are prepared for the coming travel season and have enough staff, backup planes and resources to avoid a repeat of the long waits and lost luggage that marred the summer of 2022 or the thousands of cancelled flights at Christmas, when two snowstorms revealed just how unprepared they were.

This time, they say, it’s different.

“As we continue to prepare for our busy summer travel season ahead, we are sufficiently staffed to support demand across our network,” said Madison Kruger, a spokeswoman for WestJet, which plans to hire 2,000 people this year.

“We have been preparing for the summer for some time. This includes working with third parties to ensure they are prepared as well,” said Peter Fitzpatrick, an Air Canada spokesman.

Industry experts and union officials are less confident. They say labour shortages, strong demand, airfare inflation and ambitious schedules are a recipe for more chaos.

“Everybody’s having trouble getting pilots,” said David Gillen, transportation business professor at the University of British Columbia. The shortage will make it impossible for some airlines to fulfill their schedules and expand, he said.

Bernard Lewall, a union leader at the Air Line Pilots Association who represents 1,850 pilots at WestJet and Swoop, said the Calgary-based airline lost 240 pilots last year and another 100 this year, only some of whom have been replaced. Pilots are leaving for better pay, working conditions and job security in the United States, he said.

“Unless they reduce their schedule, I do not foresee us having enough pilots for the summer,” said Mr. Lewall, a Boeing 737 pilot who started at WestJet 18 years ago.

WestJet’s chief executive officer, Alexis von Hoensbroech, said the pilot shortage, a spillover effect of the pandemic and the near halt in licensing by Transport Canada, is a short-term problem aggravated by attrition during labour talks. WestJet will have enough pilots for its plans, which include the recent takeover of Sunwing Airlines, he said. “All our recruiting classes are actually really well filled,” he said in an interview.

Last summer, shortages of staff at the government agencies that screen passengers led to jammed terminals and passengers made to wait aboard parked aircraft for long periods.

“The GTAA has been working for months to make every aspect of airport operations better than last summer,” said Guy Nicholson, a spokesman for the Greater Toronto Airports Authority, which runs Toronto Pearson International Airport.

But just last weekend, a shortage of air-traffic controllers at Toronto Pearson caused several flight delays, a worrisome sign that Nav Canada, the non-profit that owns and operates the country’s civil air navigation service, is ill-prepared for the summer.

Mr. Hoensbroech points out that Canada’s passenger rights rules make airlines financially accountable for the failure of third parties and government agencies to properly staff and run their operations. The air-traffic controller shortage had ripple effects through the entire network, exposing airlines to compensation claims, refunds and rebooked flights at other airports, he said. “Crews miss their connections, airplanes are late … from Toronto to Vancouver, so then the Vancouver to Kelowna flight will be late and then on that one, we pay everyone [compensation].”

The Canadian Transportation Agency, which adjudicates customer disputes, received 42,000 complaints from airline passengers in the 12 months ending March 31. By April 17, the backlog had risen to 45,000.

Air Canada passenger Adam Shepherd of Toronto is just one of many passengers whose trips were disrupted by lost luggage.

Mr. Shepherd flew to San Diego and back on Air Canada in early March. His bags were late going and coming. Three suitcases never appeared on the Pearson luggage belt when he returned to Toronto and had to be delivered separately to his home the next day and night. “I saw the luggage come off the plane – it just wasn’t loaded on the carousel,” he said by phone.

He wonders why the airline cannot hire enough baggage handlers.

The leader of unionized workers who handle baggage, marshal aircraft and screen passengers says there are enough people to do the work, even if lack of experience is a concern. Dave Flowers, president of District 140 of the International Association of Machinists and Aerospace Workers, said employers have been on a hiring spree to avoid a repeat of the summer of 2022.

However, Mr. Flowers said, the surge of new employees has overwhelmed the Transport Canada licensing offices and there are not enough qualified people to train the new workers. Similarly, the schools that train aircraft mechanics cannot turn out graduates fast enough to meet demand, he said.

Air Canada plans a 7-per-cent rise in July flights over the same month last year. WestJet has scheduled a 4-per-cent increase in flights with 9-per-cent more seats. Porter is offering 14-per-cent more flights. And Flair’s schedule shows a 30-per-cent increase in flights and available seats, according to Cirium, an aviation data company.

Airlines have scheduled 16,100 departures at Toronto Pearson for July, about 1,000 more than the previous July, according to Cirium.

In preparation, Nav Canada has 400 employees in training and 600 more will become qualified over the next few years, said Vanessa Adams, a spokeswoman for the agency. “Having enough people to deliver safe and efficient air navigation services is a top priority for Nav Canada,” Ms. Adams said.

Anup Srivastava, a finance professor at the University of Calgary, said many of the labour shortages that plagued airports last year are still an issue because wages have not risen enough to attract and retain workers. Additionally, more passengers and flights mean airports and airlines will be stretched to capacity with little backup, so any problems will quickly ripple through the system, causing further headaches, Prof. Srivastava said.

He predicts planes will be full – and says passengers should brace for more ugly scenes at airports.

Deirdre Fulton, a partner at U.K.-based consultancy Midas Aviation, said passengers will have no tolerance for another season of poor service and holiday disappointments. And higher fares are just making expectations even greater.

“I think it will be hugely damaging for the industry to have another disastrous summer,” Ms. Fulton said.

For some passengers, the disappointments have begun. Some carriers have been trimming their spring schedules – cancelling or merging flights. Porter has cancelled large parts of its recent schedule as it tries to sell seats on its new fleet of Embraer E195-E2 jets. Jetlines has suspended its domestic routes and leased one of its two planes to Flair Airlines. And Air Canada and WestJet have scaled back flights in each other’s traditional territory, with Air Canada cutting flights in the West and WestJet in the East.

Flair cancelled several flights in March after an aircraft leasing company repossessed four of Flair’s 19 planes. In December the carrier said it would have 28 aircraft by the summer but now says its fleet of 21 will be big enough to fly its schedule, which is 30-per-cent larger than the summer of 2022.

But these are near-term cancellations – the industry’s larger capacity for the summer is still in place.

Ms. Fulton said cancellations show airlines are matching capacity with demand and operating with discipline as they rebuild their balance sheets.

Prof. Srivastava sees it differently. He says the volatility is a sign of overcapacity or, in layman’s terms, too many airlines chasing too few passengers. “There is no place for so many players.”

[Rich Pulman]

On 5/7/2023 at 5:40 PM, Airband said:

“All our recruiting classes are actually really well filled,”

Does this CEO have a clue how dumb he sounds when he says sh!t like this? It’s all fine and good that the classes are well filled, but does the (number of classes x the number of students/class) - the rate of attrition = the number of pilots required to support the operation? From what I’m hearing, the answer is no. And unless the WS pilots get a significant improvement in their WAWCON, I suspect things are only going to get worse. I have no skin in this game, but I think WS needs some new leadership at the top.

[Turbofan]

It just sounded like gaslighting to me.

He also seemed to be suggesting the pilot shortage is only a short term issue caused by Covid.

He knows better.  He just doesn't want to admit the issue because it places leverage in the hands of his pilots.  

I think WJ is going to have a brutal summer if they don't settle with their pilots.  He will need all hands on deck.  Overtime won't be something unhappy pilots will be doing.  He is going to need overtime

[W5]

Co-Pilot’s Death Doesn’t Exempt EU Airlines From Delay Claims, Court Rules

https://www.bloomberg.com/news/articles/2023-05-11/co-pilot-s-death-doesn-t-exempt-eu-airlines-from-delay-claims

 

The unexpected death of a co-pilot just before a planned flight isn’t a reason to exempt airlines from paying compensation to delayed passengers, the European Union’s top court said in a dispute involving Portuguese carrier TAP SA.

“Such a death, whilst tragic, does not amount to an extraordinary circumstance,” warranting an exemption, the EU Court of Justice said in a binding ruling on Thursday. Instead, it is “like any unexpected illness which may affect a crew member whose presence is essential, inherent in the normal exercise of the activity of the airline.”

EU judges have been inundated with cases seeking clarity about when passengers can claim compensation since a landmark judgment in 2009 saying that delays must be at least three hours long to qualify for compensation claims. The court has since been asked about a multitude of situations and whether they’re extraordinary enough to exempt airlines from any liabilities.

Bad weather, a plane striking a bird or even a passenger biting someone on the plane are extraordinary enough, while “wildcat strikes” by staff that cause long delays aren’t, the court has ruled over the past decade.

In the latest dispute, several passengers sought compensation after their TAP flight from Stuttgart, Germany to Lisbon, Portugal was canceled. The carrier claimed “extraordinary circumstances” due to the sudden death of the co-pilot just two hours before the planned flight, a father in his early 40s, which “came as a severe shock to everyone and was completely unforeseeable,” court documents show.

Given the flight was scheduled to depart from outside TAP’s usual base, there was no immediate replacement staff and everyone had to wait for a fresh crew to be flown in, meaning passengers left for their final destination more than 10 hours later than planned.

The cases are: C-156/22, C-157/22, C-158/22 TAP Portugal.

[conehead]

That's rediculous.

[J.O.]

Beyond absurd. It seems the EU expects operators to have spare people dressed and waiting in the wings at every station.

[Specs]

So if you all went to a concert but the main attraction died before the show you wouldn't want your $600.00 back?

[Kip Powick]

1 hour ago, Specs said:

So if you all went to a concert but the main attraction died before the show you wouldn't want your $600.00 back?

Depends....what was the opening act   ???

[Specs]

15 hours ago, Kip Powick said:

Depends....what was the opening act   ???

[Seeker]

On 5/12/2023 at 2:48 PM, Specs said:

So if you all went to a concert but the main attraction died before the show you wouldn't want your $600.00 back?

A refund and compensation are not the same thing.  These people are demanding compensation.  In your example this would mean getting your $600 ticket price back and an additional $1500 or, perhaps more accurately, it would mean coming back the next night to watch a performer of equivalent stature and getting $1500 in compensation.

I guess the ruling does make some sense in comparing a death to an unexpected illness - in either case the crew member is unavailable (a little insensitive and heartless but, ok).  The key factor is that it happened away from a crewbase.  As J.O. says there is no possible way to have crews ready at every station and that's why the ruling unfair to the airline.

In any case, I say airlines should just roll with it - pay the claims and add the cost to the ticket.  The net effect is that every passenger on every flight pays and every once in a while someone wins "compensation" for a delay.  It's being forced to participate in a lottery with every ticket purchased.  Even worse is that it's not zero-sum.  This means that on average each passenger will pay more than they receive