From the BBC:
“Canada's top court upholds
passenger protection rules for flight disruptions”
Canada’s Supreme Court has ruled
against the airline industry in a case that will affect how passengers are
compensated for travel disruptions. The ruling comes after the airline industry
sued the Canadian government for updates to its passenger protection
regulations that went into effect in 2019. The country's top court on Friday
dismissed the airline industry's appeal, ruling that airlines can be required
to reimburse passengers.
The new rules require airlines -
both Canadian and international - to compensate passengers whose flights are
disrupted, or whose luggage is damaged or lost. It applies to all passengers
flying into, out of and within Canada. Airlines argued that Canada has no right
to impose rules on foreign carriers and that the compensations proposed do not
match international rules on air travel.
At the heart of the legal dispute
are Canada's Air Passenger Protection Regulations, which mandate airlines
compensate passengers if their flights are delayed or cancelled, with monetary
amounts set out depending on the severity of the disruption. In cases of a more
than nine-hour delay, passengers are entitled up to C$1,000 ($738; £563) if the
disruption is the airline’s fault. The regulations also require airlines to, in
some cases, provide food and accommodation for passengers, as well as
compensate them for lost or damaged luggage. If a flight is cancelled, the
airlines are required to issue a refund or rebook a new seat either on their
next available flight, or on a flight aboard another airline.
Passengers who have a dispute
covered by the regulations can submit it to the Canadian Transportation Agency
(CTA), who would then rule if they are entitled to compensation. The airline
industry - including Air Canada, Canadian carrier Porter Airlines, the
International Air Transport Association and international airlines like British
Airways - had sued the Canadian government over these rules but lost in federal
court. The fight ended up at the Supreme Court in March. The airlines argue
that the rules should be tossed out as Canada is already a signatory to an
international treaty that sets out compensation rules for flights. Canada
argued their rules are designed to treat all passengers in a fair and
consistent manner.
In a statement, the International
Air Transport Association said it was disappointed by the ruling, saying the
interests of passengers are best served through safe travel with minimal
disruptions. "While airlines play a critical role in this, the federal
government needs to focus its efforts on improving the overall air travel
system, especially in the parts of the value chain which are directly under its
control," it said. Passenger rights activists, who filed for intervenor
status in the case, say that international regulations set out a minimum for
air travel compensations and do not stop individual countries from creating
their own regulations.
On Friday, the Council of
Canadians with Disabilities, the National Pensioners Federation, and the Public
Interest Advocacy Centre in a joint statement called the decision "a major
victory for Canadian consumers".
Canada is not the only country
with regulations for airline passenger compensation. The European Union has had
its own since 2005, as does the UK. Earlier in 2024, the Biden administration
in the US enacted new rules that require airlines to issue prompt refunds to
passengers. Gabor Lukacs, an airline passenger advocate in Canada who is also
an intervenor in the Supreme Court case, says he is critical of Canada's
regulations because he believes they are not as strong as those of the UK or
the EU. But despite his criticism, Mr Lukacs in a statement on Friday said that
he was "grateful that the court rejected the airlines’ attempt to close
the door and nail it shut on passenger protection in Canada".
^ This is a great ruling that
will hopefully help Air Passengers. ^
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