Government Looking at Tougher Penalties for Poor Airline Service: Transport Minister

Federal Transport Minister Omar Alghabra speaks with reporters before appearing as a witness at a House of Commons Standing Committee on Transport, Infrastructure, and Communities in Ottawa on Jan. 12, 2023. The Canadian Press/Spencer Colby

The government is aiming to toughen penalties for poor airline service this spring, said Transport Minister Omar Alghabra, who appeared before a parliamentary committee on Jan. 12 looking into whether current fines are too modest or applied too sparingly.

“We’re going to keep our eye on the ball,” Alghabra told reporters in a Jan. 12 media briefing. “We’re going to keep ensuring that the airline sector remains focused on protecting passengers right.”

Several airlines experienced widespread delays and cancellations during and after the Christmas holidays when a severe winter storm disrupted their operations, affecting thousands of passengers. Some travellers were reportedly left stranded at their destinations for days, while others sought alternative means to return home.

Alghabra said the government is looking to strengthen Canada’s Air Passenger Protection Regulations (APPR) and will be introducing a proposal for legislative or regulatory changes in the spring.

“I’m waiting as well for committee members to provide their input. My plan is to table the proposal this spring,” he said.

The APPR sets compensation for a variety of airport situations. Penalties for flight delays range from $400 for delays of three hours to $1,000 for delays of over nine hours.

Minimum compensation for denial of boarding starts at $900 within six hours and up to $2,400 when such delays persist for over nine hours. Airlines could also be liable for up to $2,350 in compensation for damaged, delayed, or lost baggage during international travel.

The regulation also allows the federal regulator, the Canadian Transportation Agency (CTA), to levy fines of $25,000 per passenger. However, the maximum penalty has never been imposed, according to Blacklock’s Reporter.

“Right now there are fines of up to $25,000 per passenger that are possible under existing legislation, and yet the only time we’ve seen the CTA issue airlines fines under the APPR, we saw fines of about $200 per passenger,” NDP MP Taylor Bachrach said at the House transport committee meeting on Jan. 12.

“Why didn’t you use your ability under the Canadian Transportation Act to order the CTA to increase its fines and strengthen its enforcement to act as a deterrent?” he asked Alghabra. “When you have companies worth hundreds of millions if not billions of dollars, what is the purpose of a $200 fine?”

“We provided the CTA with the authority to impose significant fines,“ Alghabra replied. ”We leave the discretion to a quasi judicial independent body to decide, based on the facts before them, what type of fines they impose.”

Bloc Québécois MP Julie Vignola said the maximum penalty in the United States in $400,000.

“Are you considering that Canadian fines should increase to really dissuade companies from non-compliance with regulations?” she asked.

“We are looking at the issue of fines,“ Alghabra said. “If there is an opportunity to increase the fines or enhance the rules, I welcome this committee’s suggestions.”

In 2018, Parliament passed Bill C-49, An Act To Amend The Canada Transportation Act, which allows regulators to set compensation for poor service. Subsequent regulations were introduced in 2019. The Transportation Agency says it currently has the equivalent of a two-year backlog of complaints, more than 30,000.

Executives from several major Canadian airlines also testified at the House transport committee on Jan. 12 to explain the travel chaos over the holidays. They were asked about how their companies plan to compensate the affected passengers, many of whom have filed complaints, particularly with Sunwing, which has received up to 7,000 complaints to date.

Airlines told the committee that they would support a review of the APPR, but argued that it should include shared responsibility for delays and cancellations.

Andrew Gibbons, vice-president of WestJet, noted that airport delays or cancellations “can be the result of many different groups.”

“This is not about blame game. It is simply about improving the system overall, and making sure there’s full transparency so that Canadian traveller understands what is the root cause of their delay or cancel,” Gibbons said.

“What we’ve asked for and what we’ve submitted to this committee in late November as part of our recommendations is that the priority should be shared accountability.”