New rules for compensating air passengers will be in effect by the end of the year and will consider paid tickets similar to “a contract with a customer,” Transport Minister Omar Alghabra said Tuesday.. Omar AlghabraOmar Alghabra .“The airlines are responsible for delivering that service,” he told reporters..“When a passenger purchases a ticket, that is a transaction between a passenger and the airline, so it is the airline’s responsibility to make sure they uphold their obligations to their customers,” said Alghabra..“There is a significant imbalance in power here between airlines and their customers, where customers could suffer considerable consequences if a service they purchased was not delivered properly. I believe there is a role for government to fix this imbalance.”.Amendments to Air Passenger Protection Regulations proposed in cabinet’s omnibus budget Bill C-47 would require airlines to answer passenger complaints within 30 days, “publish information respecting their performance” on carriers’ websites and mandate refunds for nonperformance..“Right now, compensation for delays and cancellation is only required for disruptions caused by the airline and which is not a safety issue,” said Alghabra..“With the new changes, we would be combining the current three categories — disruption within the airlines’ control, within the airlines’ control but necessary for safety, and outside the control of the airline — into a single category where everyone would be entitled to compensation except for a clear list of exceptions.”.“What are those exceptions?” asked a reporter..“A snowstorm,” replied Alghabra..“A snowstorm will have obviously an impact on air traffic and airlines are not responsible for snowstorms.”.“Those whose planes were delayed because of a snowstorm, there is going to be a new standard of treatment that passengers need to be receiving from the airlines,” said Alghabra..“For example, food they should be provided while they are waiting for a delay.”.“They are still going to be entitled to a refund if a flight is delayed or cancelled because of a snowstorm and the customer wants a refund,” said Alghabra..“They can ask for a refund.”.Parliament will pass Bill C-47, including amendments to the Canada Transportation Act, by July 1, according to Blacklock’s Reporter..Alghabra said finalizing all new consumer rules may take until year’s end..“Once it passes, we’ll have some changes that get immediately implemented and some will still require regulatory changes that will require consultation,” he said..“So as soon as the bill is passed, some changes will take effect immediately.” He did not elaborate..Regulations introduced in 2019 promised passengers compensation of $400 for a three-hour flight delay, $900 for denial of boarding due to overbooking, up to $2,100 for lost or damaged luggage and a maximum of $25,000 in damages..However, complainants face a two-year wait for their case to be reviewed by the Canadian Transportation Agency..The federal regulator suspended enforcement of rules in 2020 after COVID flight cancellations left 3.8 million passengers owed $8.5 billion in cash refunds, by an industry estimate.
