Canada Making Flight Compensation More Consumer Friendly

Canadian Transport Minister Omar Alghabra has revealed some new legislation that consumers will no doubt appreciate…

Airlines will have to prove reasons for disruptions, not passengers

In 2019, Canada introduced new air passenger protections, similar to the EU261 policy that exists in the European Union. With this, airlines have to provide cash compensation in the event of major flight disruptions, with the exact amount varying depending on the length of the delay, and whether you’re flying a small or large airline.

As you might expect (and as we also often see in European), airlines sometimes try to wiggle their way out of compensation requests, claiming that a flight disruption was outside the carrier’s control. Fortunately there will be changes regarding which party needs to prove that.

As noted by @istrakhov and reported by Reuters, under proposed new legislation, airlines will be on the hook for proving that they shouldn’t have to pay compensation, rather than passengers having to prove it. In other words, the default would be to get compensation for an eligible flight delay, unless an airline can prove otherwise.

As explained by Alghabra:

“This means there will be no more loopholes where airlines can claim a disruption is caused by something outside of their control or a security reason when it is not. It will no longer be the passenger who will have to prove that he or she is entitled to compensation. It will now be the airline that will need to prove that it does not have to pay for it.”

This comes at a time when the Canadian Transportation Agency (CTA) has a backlog of 44,000 complaints, the highest in history. Under this proposal, airlines would also be charged a fee if they can’t resolve a complaint and it is then brought to the CTA.

Airlines will have to prove the reason a flight is delayed

The only catch with Canada’s air passenger rights

Requiring airline to prove the reason for a disruption is a fantastic change that I’d also love to see in Europe, given how frequently airlines claim that a disruption is outside of their control, even when it’s not.

It is important to note one key distinction that limits the usefulness of Canadian air passenger rights compared to those in Europe. While both sets of regulations don’t force airlines to pay compensation when a delay or cancelation is outside a carrier’s control, the key distinction is that Canada lets airlines off the hook if a disruption is for safety reasons.

Canada puts mechanical delays or cancelations in that category. That’s a pretty major difference, and greatly limits the situations under which airlines are on the hook for paying compensation. In other words, compensation is really only due if an airline just doesn’t feel like operating a flight, if a flight is disrupted due to a missing crew member, etc.

Airlines don’t have to pay compensation for mechanical issues

Bottom line

Canada has some pretty strong consumer protections for air travel. As part of this, airlines are potentially on the hook for compensation in the event of flight disruptions. As you’d expect, airlines sometimes try to weasel their way out of this, claiming that a disruption is outside of their control.

Thanks to new legislation, the onus will be on airlines to prove that a disruption is outside of their control, rather than it being the responsibility of the passenger.

What do you make of these improvements to Canada’s air passenger rights?

Conversations (15)
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glenn t Diamond

Canada is providing a loophole airlines can walk through without even a wiggle. I hear the popping of champagne corks in airline boardrooms all over! Bad news for passengers.

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rrapynot Guest

If it’s anything like EU261, it will be impossible to receive compensation. I’ve had 5 flights where I was eligible for compensation and each time the airline had refused to pay. I’ve had flights delayed due to unavailability of crew and it was blamed on weather because an inbound crew were late due to weather elsewhere. (BA at Heathrow) I’ve had flights delayed 24 hours due to mechanical. I reached out to the airline and they put me on a flight 8 hours later. Because I called they said my flight change was voluntary. (AA) I’ve had flights where they agreed to pay compensation but would only wire the funds to an EU bank account. (Level) I’ve been involuntarily moved from my connecting flight to a later flight because my inbound was delayed 20 minutes due to ATC. I was able to make it to the gate on time for the original connecting flight but was refused boarding. Airline said delay was due to my own lis connect. (BA)

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parnel Guest

its NOT really a change the airlines will continue to pretend its a safety issue and screw flyers.

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echino Diamond

Compensation is never actually paid in Canada, and nothing will change even if this proposed legislation is approved. Any delay or cancellation is claimed by airlines to be either weather or safety related, so no compensation is due.

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Gopher Guest

Ben, How does this change the burden of proof at all for case of missing crew member? Previously a passenger would submit a request for compensation because the flight was canceled due to missing crew. However, Air Canada simply replies with “the crew shortage was due to COVID. And operating the flight without minimum crew is a safety hazard. Therefore because the cancellation is due to safety reason, Air Canada is not obligated to pay compensation.” In other words, they can make up any excuse and file it under the safety exception. How does the new legislation change their ability to do that?

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