A federal plan aimed at clearing more than 92,000 unresolved air passenger complaints could leave travellers worse off by allowing airlines to send disputes to binding arbitration, a consumer advocacy group is warning.Blacklock's Reporter said the Montréal-based Option Consommateurs raised concerns about the proposed overhaul of the Air Passenger Protection Regulations in a submission to the Commons finance committee.“We are concerned the bill provides little clarity regarding the transparency, independence and impartiality of obligations that will apply,” the group wrote.Its submission, titled Reform Without A Safety Net For Air Passengers, said the proposed system leaves important questions unanswered about how arbitrators would operate and be held accountable.“What standards will they be held to in order to ensure good governance?” the group asked. “What accountability mechanisms will be put in place?”Cabinet announced in its April 28 budget that changes were needed to address a backlog of 92,500 unresolved passenger complaints before the Canadian Transportation Agency.“There is a significant backlog,” wrote the Department of Finance.Ottawa said it also wanted to simplify air passenger rules and speed up compensation when flights are delayed, cancelled or otherwise disrupted.“Beyond the backlog, the government also intends to develop a simpler and more effective regulatory regime so that rules are clearer and passengers are fairly and more quickly compensated when air travel does not go as planned,” cabinet wrote.The government subsequently introduced Bill C-31, A Second Act To Implement Certain Provisions Of The Budget Tabled In Parliament On November 4, 2025.Division 17 of the omnibus budget bill would permit airlines to “enter into an agreement or arrangement with a designated person for the purposes of resolving specified complaints against the carrier.”Decisions made through the process would be binding.The Commons gave the bill Second Reading on June 3.Option Consommateurs told MPs it questioned why Ottawa was pursuing what it called a “drastic approach” to dealing with passenger complaints.The group “has difficulty understanding the government’s decision to pursue such a drastic approach as an alternative complaint-handling system,” it wrote.“It seems ill-timed to reform a system that has already been described as broken when it has never been completed.”.Parliament approved the Air Passenger Protection Regulations in 2019, establishing compensation requirements for passengers affected by flight disruptions and other problems.Compensation ranged from $400 for certain three-hour delays to $900 for passengers denied boarding because of overbooking. Travellers could also receive up to $2,100 for lost or damaged baggage and as much as $25,000 in general damages.Option Consommateurs noted Parliament approved further reforms in 2023, including provisions requiring airlines to cover the cost of processing passenger complaints, but said those measures were never brought into force.“It is clear the situation is getting worse,” the group wrote.The organization said travellers regularly complain about receiving conflicting or inadequate information from airlines when flights are disrupted.“Many consumers reach out to us because the information they receive from carriers during flight disruptions is contradictory or insufficient,” said the submission.“They must go through multiple steps to assert their rights, which makes an already stressful process even more burdensome and frustrating.”
