The federal government says it will strip the Canadian Transportation Agency of its role handling air passenger complaints as it moves to address a backlog that has ballooned to an estimated 92,500 cases.Blacklock's Reporter says the plan, outlined in the government’s Spring Economic Update, signals a shift toward a new dispute resolution model and a broader overhaul of how airline passenger complaints are processed in Canada.“The Government of Canada created Air Passenger Protection Regulations in 2019 to establish minimum requirements for airlines to protect the rights of passengers in Canada including compensation obligations,” the finance department said. “However there is a significant backlog of passenger complaints.”Cabinet says it intends to clear that backlog by shifting cases to a neutral third-party dispute resolution body, modelled on systems used in the United Kingdom and European Union. No draft legislation was released with the announcement.The government also said it plans to simplify the regulatory framework governing air travel complaints to make rules clearer and ensure passengers are compensated more quickly when disruptions occur.Parliament introduced air passenger compensation rules seven years ago, setting payouts ranging from $400 for a three-hour delay, $900 for denied boarding due to overbooking, up to $2,100 for lost or damaged baggage, and as much as $25,000 in general damages..Despite those protections, complaints have surged. By 2025, filings reached 182,249 according to a government response tabled in the House of Commons.Internal research cited in the Spring Economic Update suggests relatively few passengers actually pursue claims. A 2024 survey found only 3% of respondents said they had filed a complaint with the Canadian Transportation Agency, with many saying the process was not worth the effort.The same research showed only 17% of travellers reported submitting complaints about delays or denied boarding, even when eligible for compensation.Among those who did file claims, satisfaction was mixed. Only 43% said airline staff were helpful in resolving their complaint, while 31% said they received clear, timely information about their case or passenger rights.Awareness of compensation rights was also low. When asked if they had been informed they may be entitled to compensation, 85% of respondents said no. More than half, 53%, said airline staff were not helpful, and 67% said airlines did not provide clear or timely information.
