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Supreme Court upholds air passenger compensation rules in win for consumers

Appeal by a group of airlines that challenged Canada91裸聊视频檚 passenger rights charter dismissed
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People line up before entering the security zone at Pearson International Airport in Toronto on Friday, August 5, 2022. Supreme Court upholds rules on passenger compensation in victory for air travellers. The Supreme Court of Canada says it will uphold rules that bolster compensation for air passengers subjected to delayed flights and damaged luggage.THE CANADIAN PRESS/Nathan Denette

In a victory for air travellers, the Supreme Court of Canada has upheld rules that bolster compensation for passengers subjected to delays and damaged luggage on international flights.

On Friday, the country91裸聊视频檚 highest court unanimously dismissed an appeal by a group of airlines that challenged Canada91裸聊视频檚 passenger rights charter. Air Canada, Porter Airlines Inc. and 16 foreign appellants had argued that the Air Passenger Protection Regulations launched in 2019 violate global standards and should be rendered invalid for trips into and out of the country.

The legal challenge, which kicked off that year, said that by imposing higher compensation requirements for lost baggage and late or cancelled flights abroad, the regulations exceeded the Canadian Transportation Agency91裸聊视频檚 authority and breached international rules known as the Montreal Convention.

In December 2022, the Federal Court of Appeal dismissed the carriers91裸聊视频 case with the exception of one regulation that applies to the temporary loss of baggage.

The Canadian Transportation Agency and attorney general argued there is no clash between passenger protections and the Montreal Convention, a multilateral treaty signed by Canada in 2001.

On Friday, the Supreme Court effectively agreed, stating in a decision written by Justice Malcolm Rowe that the regulations 91裸聊视频渄o not conflict with the Montreal Convention.91裸聊视频

91裸聊视频淚n signing on to the convention and the 91裸聊视频榩rotective reconciliation91裸聊视频 between the interests of passengers and carriers that it engendered, 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,91裸聊视频 Rowe wrote.

In an emailed statement, Transport Minister Anita Anand said the top court 91裸聊视频渞uled in favour of passengers and our view that passengers need protection.91裸聊视频

Jeff Morrison, president and CEO of the National Airlines Council of Canada, said the group was 91裸聊视频渄isappointed91裸聊视频 by the court91裸聊视频檚 decision but that carriers would continue to work with industry players and government to reduce travel disruptions.

Under the federal rules, passengers must be compensated with up to $2,400 if they were denied boarding because a trip was overbooked 91裸聊视频 so-called flight bumping. Flights that are cancelled or significantly delayed for reasons within the airline91裸聊视频檚 control 91裸聊视频 scheduling problems, for example, but not bad weather 91裸聊视频 warrant compensation of up to $1,000. Travellers can receive up to about $2,300 for lost or damaged baggage, though the exact number fluctuates based on exchange rates.

The airlines91裸聊视频 argument that the regulations contravene the Montreal Convention rested on that agreement91裸聊视频檚 91裸聊视频渆xclusivity principle.91裸聊视频 The convention states that any 91裸聊视频渁ction for damages91裸聊视频 91裸聊视频 a lawsuit seeking financial compensation, for example 91裸聊视频 relating to an international flight is subject exclusively to the conditions of the treaty, rather than any other set of rules.

However, the court found that while actions for damages are pursued case by case, Canada91裸聊视频檚 passenger rights charter lays out a blanket approach and thus falls outside the Montreal Convention.

91裸聊视频淭he regulations do not provide for an 91裸聊视频榓ction for damages91裸聊视频 because they do not provide for individualized compensation; rather, they create a consumer protection scheme that operates in parallel with the Montreal Convention,91裸聊视频 Rowe wrote.

91裸聊视频淎ccordingly, they do not fall within the scope of the Montreal Convention91裸聊视频檚 exclusivity principle.91裸聊视频

The appellants included the three biggest U.S. airlines, flagship carriers such as British Airways and Air France and the International Air Transport Association, which counts WestJet, Air Transat and about 290 other airlines as members.

Since the rules came into force five years ago, the government has taken further steps to tighten them, a move prompted by scenes of airport chaos, endless security lines and overflowing baggage halls in 2022 during a surge in air travel after COVID-19-related shutdowns.

In 2023, Liberal legislation targetted loopholes that have allowed airlines to avoid paying customers compensation and worked to establish a more streamlined complaints resolution system.

The new provisions also sought to ratchet up penalties via a $250,000 maximum fine for airline violations 91裸聊视频 a tenfold increase from the existing regulations 91裸聊视频 in an effort to encourage compliance.

Another amendment 91裸聊视频 both have yet to take effect 91裸聊视频 would place the regulatory cost of complaints on carriers91裸聊视频 shoulders. The measure would cost airlines $790 per complaint 91裸聊视频 amounting to millions of dollars per year 91裸聊视频 under a recent proposal from the regulator that aims to encourage them to brush up their service and thus reduce the number of grievances against them.

Meanwhile, the complaints backlog at the country91裸聊视频檚 transport regulator continues to mount, standing at about 78,000 as of last month.

Sylvie De Bellefeuille, a Quebec-based lawyer with advocacy group Option consommateurs, called the ruling 91裸聊视频渧ery good91裸聊视频 for travellers.

91裸聊视频淚t confirms the power of the Canadian government to provide regulations that aims to protect passengers,91裸聊视频 she said, adding that the decision aligns with others handed down by European courts.

Air Passenger Rights president Gabor Lukacs, an intervener in the case, said the Supreme Court ruling 91裸聊视频渂reathes new life91裸聊视频 into the move to revamp the traveller protection regime.

However, the existing regulations fall short of the European Union91裸聊视频檚 91裸聊视频済old standard of passenger protection,91裸聊视频 he added, calling for reforms that mirror EU rules. He and others also said the government has been dragging its feet on implementing the promised changes.

91裸聊视频淚t91裸聊视频檚 been over a year since the government promised changes to make the system better,91裸聊视频 said Canadian Automobile Association spokesman Ian Jack.

91裸聊视频淲e need to see those now, so the system isn91裸聊视频檛 just legal, it actually works for Canadians.91裸聊视频





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