Airlines could soon be allowed to select the people deciding passenger compensation disputes under a federal government proposal aimed at clearing a massive backlog of nearly 100,000 complaints.Blacklock's Reporter says Government House Leader Steven MacKinnon told the Commons finance committee the Canadian Transportation Agency (CTA) has failed to manage the system despite having 120 employees assigned to process claims.“The Canadian Transportation Agency has proven to be incapable of implementing this particular system,” MacKinnon testified.He said the agency was “not equipped” to handle the workload, which has left approximately 97,000 complaints unresolved and passengers typically waiting three years for a decision.Under Bill C-31, A Second Act To Implement Certain Provisions Of The Budget, airlines would be permitted to hire designated adjudicators to resolve compensation disputes against the carriers themselves.The airlines would select the adjudicators and pay the costs of the new system, replacing the current taxpayer-funded process.“We think we can eliminate that backlog in a pretty reasonable period of time,” MacKinnon said, although he provided no specific timeline.The federal government introduced the Air Passenger Protection Regulations in 2019, giving the CTA responsibility for handling complaints involving flight delays, cancellations, denied boarding and lost luggage.Compensation under the regulations ranges from $400 for certain three-hour flight delays to $900 for passengers denied boarding because of overbooking. Payments can reach $2,100 for lost or damaged baggage, while general damages can total as much as $25,000.Conservative MP Dan Albas (Okanagan Lake West-South Kelowna, B.C.) questioned how the system had deteriorated despite substantial federal spending.“Your government gave the Canadian Transportation Agency $76 million over three years to increase complaint processing capacity and modernize the system and today we’re looking at 100,000 complaints and years in waiting for someone to have their case heard,” Albas said.“What went wrong and who has been held accountable?”.MacKinnon blamed the complexity of the existing regulations.“The Air Passenger Protection Regulations are overly complex,” he replied.When Albas pressed him on whether anyone at the agency had been held responsible, MacKinnon responded: “I think I’ve been pretty transparent.”The government maintains taxpayers should no longer be responsible for financing the adjudication process.“We just don’t believe taxpayers should continue bearing the cost of these adjudications,” MacKinnon said.“While we are prepared to get this backlog eliminated, we are no longer prepared to subject taxpayers to the responsibility and burden of paying for this system.”Albas warned the proposed changes could ultimately leave travellers paying higher ticket prices as airlines recover their costs.“The burden of paying for your system is going to the passengers themselves,” he said. “The airlines will simply pass it onto them.”Consumer advocacy organizations have also raised concerns about allowing airlines to choose the individuals responsible for ruling on complaints against them.The Canadian Automobile Association, Air Passenger Rights, Option Consommateurs and Flight Claim have all opposed the proposed changes.Jacob Charbonneau, CEO of Montreal-based Flight Claim, told the Senate transport and communications committee on September 23 that passengers already face lengthy delays and have little leverage when airlines refuse compensation.“People making a claim today can expect a decision by 2029,” Charbonneau testified.“This is the heart of the problem. The carrier holds all the cards and the cost of denial is nothing.”He said the CTA eventually rules in favour of passengers in 57% of cases, but airlines face no additional financial consequences for delaying payments.“When the Agency finally decides, it rules in favour of the passenger in 57 percent of the cases and three years later the carrier pays the same amount without any interest or penalty,” Charbonneau said.The proposed changes would shift responsibility for financing complaint adjudication from taxpayers to airlines, while raising questions among consumer advocates about the independence of decision-makers selected by the carriers.
