Passenger compensation: complaints pile up, but measures are slow to be implemented

Passenger compensation: complaints pile up, but measures are slow to be implemented

Announced in April 2023, measures designed to strengthen passenger rights are still pending, while the number of complaints continues to increase.

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The Canadian Transportation Agency (CTA) is slow to announce the implementation of measures to address the shortcomings in passenger compensation, particularly following flight cancellations.

However, there are currently 72,000 complaints awaiting processing by the CTA, bringing the total number of complaints filed over the past two years to 85,000.

“What we’re hearing is that there are likely many lobbies in Ottawa attempting to delay the implementation of the changes to the provisions and the fees that were to be charged to carriers for cases that were going to be settled before the Canadian Transportation Agency,” explained Jacob Charbonneau, president of volenretard.ca, to TVA Nouvelles.

According to Charbonneau, airlines are doing everything in their power to avoid compensating their customers, claiming that cancellations or postponements of flights are not their responsibility.

“Often, they’ll come up with all sorts of reasons to avoid having to pay compensation,” the expert says.

The problem is that airlines are both judge and jury, since they receive the compensation request, decide whether to accept it or not, and then reimburse passengers if the request is accepted.

“Often, what we realize is that there are almost systematic refusals, and people who want to pursue further action have to go before the CTA to file a complaint or get a judgment, an enforceable decision on their file; they’ll have to wait 18 to 24 months because we currently have delays,” says Jacob Charbonneau.

Mr. Charbonneau would like to see Canada follow in Europe’s footsteps, where compensation can only be refused in extraordinary circumstances.

“It is up to the carriers to prove that they have done everything in their power to mitigate the effects of the situation.”

To see the full explanation, watch the video above.

Passenger Compensation Delays: A Growing Problem in Canada

In April 2023, the Canadian Transportation Agency (CTA) announced plans to strengthen passenger rights and address delays in compensation for flight cancellations. However, these measures are still pending, and the number of complaints continues to rise.

The CTA is currently facing a backlog of over 72,000 complaints, with a total of 85,000 complaints filed in the past two years. According to Jacob Charbonneau, president of volenretard.ca, the delay in implementing these measures can be attributed to lobbying efforts by airlines.

Airlines Resisting Compensation

Airlines are actively seeking to avoid compensating passengers, often claiming that cancellations or delays are not their fault. This practice has left many passengers frustrated and financially burdened.

“What we hear is that there are possibly a lot of lobbies in Ottawa trying to push back the changes to the provisions and the fees that were to be charged to carriers for cases that were going to be settled before the Canadian Transportation Agency,” explained Charbonneau to TVA Nouvelles.

He further stated that airlines often invent excuses to avoid responsibility for compensation, such as blaming cancellations on external factors. “Often, we will come up with all sorts of reasons to avoid having to pay compensation,” the expert claims.

Unfair System

Another major issue is the current compensation process, which puts airlines in the position of being both judge and jury. This means that airlines receive compensation requests, decide whether to accept them, and then reimburse the passengers if they deem it necessary.

This system creates an inherent conflict of interest, as airlines have a financial incentive to deny compensation claims. “Often, what we realize is that there are almost systematic refusals and people who want to continue further go before the OTC to file a complaint or to have a judgment, an enforceable decision on their file; they will have to wait 18 to 24 months because we currently have delays,” says Charbonneau.

Learning from Europe

Charbonneau suggests that Canada adopt a system similar to Europe’s, where compensation for flight cancellations can only be refused in exceptional circumstances. This approach places the onus on airlines to prove that they have made every effort to minimize the impact of the situation.

“It is up to the carriers to prove that they have done everything in their power to reduce the effects of the situation.”

The Need for Transparency and Accountability

The current situation highlights the need for greater transparency and accountability in the airline industry. Passengers deserve clear and concise information regarding their rights and a fair system for seeking compensation.

Call for Action

To address this growing problem, it is vital for the Canadian government to prioritize the implementation of stricter regulations for passenger compensation, including the following:

  • Independent oversight of compensation claims: This would remove the conflict of interest and ensure that airlines are held accountable for their actions.
  • Clearer definitions of “extraordinary circumstances”: This would limit the airlines’ ability to use vague excuses for refusing compensation.
  • Increased transparency: Airlines should be required to provide passengers with clear and accurate information regarding their rights and compensation procedures.
  • Increased penalties for non-compliance: This would incentivize airlines to comply with regulations and prioritize passenger rights.

Until these changes are implemented, passengers continue to face significant challenges in seeking compensation for flight disruptions. The CTA’s slow response and the airlines’ resistance to reform are causing unnecessary hardship for travellers.

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