Canada flight compensation rules, Canada’s passenger protection legislation, which require compensation for travel disruptions, have been upheld by the Supreme Court of Canada, which decided against the airline industry. The ruling followed a lawsuit filed by airlines, including Air Canada and foreign carriers, against the Canadian government over new regulations that were implemented in 2019. Under these regulations, flights into, out of, and within Canada must provide compensation to passengers for lost or damaged luggage, aircraft delays, and cancellations.
The airlines contended that the compensation amounts deviate from worldwide standards for air travel and that Canada should not impose limitations on foreign carriers. The court, however, rejected the appeal and upheld the requirement that, in cases where the airline is at fault, passengers be compensated for interruptions. For delays more than nine hours, compensation is up to $1,000. In certain situations, the regulations also mandate that airlines offer lodging, meals, and other travel options.
Under the regulations, the Canadian Transportation Agency (CTA) is in charge of resolving passenger grievances. The airlines argued that Canada’s laws violated an international convention controlling pay for air travel; however, the Canadian government successfully argued that the standards guarantee equitable and uniform treatment for passengers, and the court upheld their position.
Advocates for passenger rights who took part in the litigation hailed the decision as a win for customers. Similar laws are in place in other areas, such the UK and the European Union. The Biden administration enacted new regulations in the United States at the beginning of 2024 to ensure reimbursements for travel disruptions. Airline passenger advocate Gabor Lukacs expressed gratitude that the court upheld the protections, guaranteeing the continuation of consumer rights in Canada, despite some criticism that Canada’s restrictions are not as stringent as those in the EU or UK.
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