Airlines lose bid to skirt some rules around Canada’s air passenger rights

Airlines must compensate travellers for international flight disruptions based on rules outlined by the Canadian Transportation Agency (CTA), the Supreme Court of Canada decided on Friday (Oct. 4).

The ruling upholds Canada’s Air Passenger Protection Regulations (APPR) after airlines appealed to have them made invalid for international flights.

Canada’s air passenger rights charter was launched in 2019. The issue, as of late, has been deciding if whether it stands alongside rules laid out in the Montreal Convention, the international standard signed by Canada, in 2001.

The APPR outline compensation for flight delays and cancellations and lost baggage when things are within an airline’s control, or for safety reasons.

The Montreal Convention, however, takes a more individual perspective, stating that a passenger can argue in court that they were wronged, and if successful, they can receive compensation.

This has been challenged Air Canada, Porter and international carriers like Lufthansa and Air France.

The airlines have argued the APPR extends beyond the CTA’s powers and that the rules are inconsistent with the Montreal Convention’s rules.

The Federal Court of Appeal dismissed this challenge in 2023; the case was also heard by the Supreme Court in March earlier this year.

Today, however, the Supreme Court said the regulations “do not conflict with the Montreal Convention.”

In a statement, Transportation Minister Anita Anand said the ruling aligns with Ottawa’s push to improve traveller protections.

“Today, the Supreme Court ruled in favour of passengers and our view that passengers need protection. We will always stand up for Canadians and their rights as travellers,” she said.

Under the APPR, air passengers must be compensated with up to $2,400 if they were denied boarding because a trip was overbooked.

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

Travellers can also receive up to about $2,300 for lost or damaged luggage.

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