A new air passenger bill of rights may compensate travellers for flight delays, but it will also prompt airlines to purchase additional insurance coverage for protection – and potentially pass that cost back to the consumer.
The Canadian Transportation Agency (CTA) has announced a set of proposed regulations that, if enacted, will compel all airlines to compensate passengers for delays and lost or damaged luggage. According to CBC News, Canadians will be given two months to comment on the proposed regulations before final approval by cabinet.
While compensation for delays and cancellations is already required under the current regime, airlines are free to submit their own respective compensation structures to the CTA. By contrast, the proposed regulations outline prescribed blanket fees for delays and cancellations depending on the length of the wait, ranging from $400 for a delay of three to six hours, to $1,000 for a delay of nine hours or more.
Delays caused by commercial decisions, such as overbooking a flight, also carry prescribed penalties. Additionally, lost or damaged luggage will be compensated up to $2,100.
The proposed regulations will apply to all airlines flying into, out of, and within Canada.
Scott Streiner, chair and chief executive officer of the CTA, told CBC News that the changes are comparable to the European compensation system, which is considered a global leader in passenger rights.
However, the proposed changes are expected to increase the average price of a flight ticket by around $2.75, raising concerns that airlines will simply pass on the costs to travellers.
“Carriers are going to get insurance against this stuff,” John McKenna, president of the Air Transport Association of Canada, told CBC News. “That insurance has got a price, and it’s going to be passed on to the passenger, for sure.”
