Supreme Court upholds Canada’s air passenger protection regulations

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Supreme Court upholds Canada’s air passenger protection regulations

A coalition of 16 international airlines, including Air Canada and Porter, had argued the Canadian Transportation Agency overstepped its authority in creating the regulations that compensate passengers for delays and cancellations

Travellers are seen at Toronto's Pearson Airport

Fri Oct. 4, 2024 - Toronto Star
by Josh Rubin - Business Reporter

In a unanimous ruling released Friday, the Supreme Court of Canada has upheld Canada’s air passenger protection regulations, shooting down an attempt by the airlines to appeal a 2022 federal court judgment.

A coalition of 16 international airlines, including Air Canada and Porter, had argued that the Canadian Transportation Agency overstepped its authority in creating the Air Passenger Rights Regulations, which compensate passengers for delays, cancellations and denied boarding.

The airlines — and the International Air Transport Association — argued that the regulations should be struck down for international flights, because Canada has already signed the Montreal Convention, an international air passenger protection treaty.

“In signing on to the Convention … there is no indication that Canada (or any other state party) agreed to forego its ability to provide for minimum standards of treatment for passengers within its jurisdiction,” the court wrote in its ruling.

In a press release, passenger rights advocate Gabor Lukacs, who was an intervener in the case, praised the ruling.

“The decision upholds Canadian passengers’ right to be treated fairly,” said Lukacs, founder of Air Passenger Rights. “I am grateful that the court rejected the airlines’ attempt to close the door and nail it shut on passenger protection in Canada.”

Lukacs, who has long criticized Canada’s Air Passenger Rights Regulations (APPR) as inadequate, said the ruling could provide more momentum for a push to make the APPR stricter, similar to the regulations in force in the European Union.

“The court’s decision breathes new life into the initiative to revamp the APPR and correct its many shortcomings,” said Lukacs. “Canada needs an EU-style regime. It has been tested and it works.”

In a written statement, the Canadian Transportation Agency (CTA) said it was gratified by the ruling.

“The Supreme Court of Canada’s 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,” the CTA said.