The Canadian government has announced an increase in the maximum fine that can be imposed on airlines for repeated violations of the air passenger bill of rights to $1 million. Transport Minister Steven MacKinnon revealed this during a recent news briefing, emphasizing that financial penalties are a last resort for clear breaches to dissuade such events from recurring.
The air passenger protection regulations (APPR) were implemented in 2019, requiring airlines to compensate passengers for delays or cancellations within their control. Airlines found repeatedly violating these regulations face a current maximum fine of $25,000, which the government is proposing to raise to $250,000 pending the 2023 budget changes.
Ian Jack from the Canadian Automobile Association expressed skepticism about the increased fine being effective without proper enforcement. The Canadian Transportation Agency (CTA) has been overwhelmed with a backlog of 95,000 air passenger complaints since the launch of the bill of rights in 2019.
To address this, the government plans to outsource the resolution process to a neutral third-party organization, following models from the U.K. and EU systems. Air Canada has already announced a pilot program to transfer air passenger complaints to a third party for resolution.
While the government aims to simplify the regulations and expedite the complaint resolution process, there are concerns about the effectiveness of introducing a third-party adjudicator. MacKinnon assured that efforts are underway to clear the backlog swiftly and improve the system for better outcomes. However, Jack highlighted the importance of implementing the proposed regulations promptly to prevent the backlog from escalating further.
