Internal government documents obtained by Go Public reveal a potential effort by Transport Canada officials and successive transport ministers to delay and undermine a move to make airlines contribute to Canada’s air passenger complaints system. These records indicate that Transport Canada, under different transport ministers, intervened in the work of the Canadian Transportation Agency (CTA), which was mandated by Parliament in 2023 to introduce a cost-recovery fee on airlines. Despite this directive, the fee has yet to be implemented over two and a half years later.
Currently, taxpayers are footing approximately $30 million annually to handle air passenger complaints, leading to a growing backlog of over 88,000 cases. Passengers facing issues like flight delays or lost luggage can file complaints with the CTA, but due to overwhelming demand, Parliament instructed the agency to charge airlines a fee for cases involving eligible claims as a temporary measure.
To understand the delay in implementing the fee, Go Public filed an Access to Information request covering a specific period. The obtained documents, exceeding 2,000 pages, include correspondence between the CTA and various transport ministers, internal discussions addressing government concerns on the proposed fee, and inputs from a public consultation process.
Gábor Lukács, President of Air Passenger Rights, reviewed the documents and highlighted what he perceives as ministerial interference with the CTA’s independent work. The CTA, transport minister, and Transport Canada declined interviews, with Transport Canada providing a general statement that did not address specific questions. Former transport ministers did not respond to inquiries since the directive to implement the fee.
Following Parliament’s 2023 order for airlines to pay a fee for eligible passenger complaints, the CTA proposed a $790 charge per complaint. Despite public support and opposition from airlines, the fee has faced setbacks. Notably, a letter from former transport minister Anita Anand requested a delay in implementing the fee, citing concerns about consultation and fee structure.
Constitutional law expert Paul Daly criticized Anand’s stance, stating that consultation adequacy falls under the CTA’s jurisdiction, not the minister’s. Lukács criticized the delay, alleging deliberate sabotage by Transport Canada and ministers in obstructing fee implementation and infringing on the CTA’s independence.
Despite the ongoing delay, lobbying efforts from the airline industry have intensified, with numerous meetings held to discuss the fee proposal. The regulatory system’s failure to act as intended has hindered Canadians from seeking compensation for their rights. With the backlog of air passenger complaints projected to surpass 150,000 by 2028, the delay poses significant challenges for Canadians seeking rightful compensation.