Canadian airlines among carriers asking appeal court to nullify passenger rights rules

Canadian airlines are among the carriers asking a Federal Court of Appeal panel Wednesday to quash rules that support compensation for passengers subjected to delayed flights and damaged luggage.

Air Canada, Porter Airlines Inc., and 16 other appellants that include the International Air Transport Association argue that payments required under the country’s three-year-old passenger rights charter violate international standards and should be deemed invalid.

The 2019 court application says the new provisions exceed the Canadian Transportation Agency’s authority.

The appellants also claim that the provisions violate the Montreal Convention by setting compensation amounts based on the length of the delay and “irrespective of the actual damage suffered.”

The filing further says nullifying the regulations would avoid passenger confusion who could be subject to multiple travel rules on international flights.

Under current federal rules, passengers have to be compensated up to $2,400 if they were denied boarding because a flight was overbooked and receive up to $2,100 for lost or damaged luggage.

Delays and other payments for cancelled flights warrant compensation of up to $1,000.

The issue came to the forefront after a 2017 incident where two Montreal-bound Air Transat jets were diverted to Ottawa because of bad weather and held on the tarmac for up to six hours, leading some passengers to call 911 for rescue.

It took on renewed relevance when travel restrictions due to the pandemic prompted mass flight cancellations.

In 2020, the Federal Court of Appeal dismissed an attempt by airlines to freeze the country’s new passenger bill of rights until an appeal of the regulations was heard.

The hearings are slated to run Wednesday and Thursday.