Airlines lose bid to skirt some of Canada’s air passenger rights rules

The court decision released Friday upholds Canada’s Air Passenger Protection Regulations after a group of airlines appealed to have them declared invalid for international flights.

Airlines must compensate travellers for international flight disruptions based on the Canadian Transportation Agency’s rules, the Supreme Court of Canada ruled in a landmark decision for air passengers.

The decision released Friday upholds Canada’s Air Passenger Protection Regulations (APPR) after a group of airlines appealed to have them declared invalid for international flights.

At the heart of the case was whether Canada’s passenger rights charter, enacted in 2019, could stand alongside rules set out in the Montreal Convention, the international standard signed by Canada in 2001.

While the APPR sets out a standardized compensation scheme for delays and cancellations and lost baggage when the factors are within the airline’s control or for safety reasons, the Montreal Convention takes a more individualized approach.

According to that standard, a passenger can attempt to argue in court that they were wronged and if successful receive compensation accordingly.

That was challenged by a group of airlines that included Air Canada, Porter Airlines and international carriers such as Lufthansa and Air France.

These airlines argued that the APPR extend beyond the Canadian Transportation Agency’s powers and were inconsistent with the rules set out in the Montreal Convention. The CTA and attorney general argued there is no clash between passenger protections and the Montreal Convention.

The Federal Court of Appeal dismissed the airlines’ challenge in late 2023 and the case was heard by the Supreme Court in March of this year.