The maximum fine that airlines can face for repeated violations of the air passenger bill of rights will be increased to $1 million by the federal government. Transport Minister Steven MacKinnon announced the decision at a news conference recently, emphasizing that financial penalties are a last resort and should deter future breaches.
The air passenger protection regulations (APPR), which came into effect in 2019, mandate airlines to compensate passengers for delays or cancellations under their control. Airlines found repeatedly flouting these regulations currently face a maximum fine of $25,000. However, a proposed increase to $250,000 is pending implementation from changes introduced in the 2023 budget.
Ian Jack, a representative from the Canadian Automobile Association, expressed skepticism about the effectiveness of the increased fine without consistent enforcement. He highlighted that airlines have tested the limits due to the government’s reluctance to impose fines, resulting in a backlog of 95,000 complaints at the Canadian Transportation Agency (CTA).
To address the backlog, the government plans to outsource the resolution process for air passenger complaints to a neutral third-party organization, drawing inspiration from systems in the U.K. and EU. While this approach may aid in resolving complaints, Jack stressed the importance of simplifying regulations to expedite the process and enhance passenger satisfaction.
Minister MacKinnon acknowledged the need to overhaul the current system, admitting that it was convoluted, time-consuming, and costly. He reassured those affected by the backlog that changes are underway to streamline the process. Despite the CTA proposing new regulations in late 2024 and completing consultations in March 2025, their implementation timeline remains uncertain.
While MacKinnon prioritizes clearing the existing backlog, Jack warned that without simplifying the rules, the backlog may persist or even worsen. He questioned the feasibility of swiftly reducing a backlog of 100,000 complaints without addressing the complexities and inefficiencies within the current regulatory framework.