Ottawa moves to privatize airline complaints as backlog hits 97,000 cases

Ottawa is moving to privatize the adjudication of passenger compensation disputes as it tackles a backlog of nearly 97,000 unresolved complaints at the Canadian Transportation Agency (CTA).

The proposal would allow airlines to hire designated adjudicators to resolve compensation disputes directly against the carriers, with the airlines covering the costs of the new system. The plan would replace the current taxpayer-supported process.

The government argues the backlog could be eliminated within a reasonable period, though no specific timetable was provided. The change is part of Bill C-31, A Second Act To Implement Certain Provisions Of The Budget.

Consumer groups have raised concerns about airlines selecting the decision-makers, and about potential impacts on independence and passenger leverage. Opponents include the Canadian Automobile Association, Air Passenger Rights, Option Consommateurs, and Flight Claim.

Under the current framework, the Air Passenger Protection Regulations assign the CTA responsibility for handling complaints related to delays, cancellations, denied boarding, and lost luggage, with compensation levels outlined for various scenarios. The government contends the costs should shift away from taxpayers toward airlines.

The debate touched on potential effects for travelers, including whether ticket prices could rise as airlines recover costs, and questions about accountability within the agency for the long-standing delays. The government maintains the measure would end taxpayers’ financing of adjudication, while consumer advocates warn about potential conflicts of interest and delayed enforcement.