Supreme Court agrees to hear airlines' appeal in compensation rules case

Airlines are going to have their day in court as the Supreme Court of Canada agreed on Thursday (Aug. 17) to hear their appeal to rules that increase compensation to passengers who have suffered delayed international flights or damaged luggage.

Air Canada and Porter Airlines are among 18 companies arguing, since 2019, that Canada’s passenger rights charter exceeds the Canadian Transportation Agency's authority and violates global standards known as the Montreal Convention.

The CTA and attorney general disagree, saying there is no conflict between passenger protections and the multilateral treaty.

The airlines’ case was dismissed in December by the Federal Court of Appeal, with the exception of one rule related to temporary loss of baggage.

Currently, passengers must be compensated up to $2,400 if denied boarding because a trip was overbooked.

Delays and cancelled flights lead to payments of up to $1,000, while travellers receive up to about $2,350 for lost or damage baggage.

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