Canadian airlines push back against proposed passenger complaint fee

Major Canadian carriers are pushing back against a proposed cost-recovery plan from the Canadian Transportation Agency (CTA) that would levy a flat $790 fee for every eligible passenger complaint.

The fee would cost airlines roughly $17.9 million a year, according to CTA estimates. The agency said it has the capacity to close 22,615 complaints annually.  

“Only airlines would be required to pay the fee,” said Jadrino Huot, a spokesman for the CTA, in a statement to the Globe and Mail. 

“The fee applies for all eligible air travel complaints for the purposes of dispute resolution, whether the decision is in favour of the passenger or the airline, as it is linked to the cost of processing complaints, not the outcome of the complaints.”  

To be considered eligible, passenger complaints must pass through a review process that includes an initial dialogue between the airline and the passenger. 

Only complaints that pass this review process would enter mediation and, in turn, result in the $790 fee.

The fee is part of a temporary plan to recover 60 percent of legal, administrative, and other costs related to each eligible complaint.  

Stakeholders have until Oct. 21 to comment on the proposed structure, and the CTA said the fees will eventually be replaced under “broader recovery schemes.”  

Eligible air travel complaints must involve a flight incident the CTA can address, such as a flight delay or lost luggage, along with several others listed on the agency website.  

Complaints related to airline customer service or airport security screening are not eligible, the agency said, adding: “The air passenger complaint cannot be vexatious or made in bad faith.” Airlines will also not be charged for accessibility-related complaints.  

Still, major Canadian carriers are pushing back.  

An Air Canada spokesperson told the Globe $790 is more than the average revenue it makes on a one-way ticket, and more than the average compensation allowed under CTA rules. WestJet also opposes the plan. 

“This punitive proposal highlights a troubling disconnect between the agency and the realities of Canada’s economy and aviation sector,” said Andy Gibbons, vice-president of external affairs at WestJet, per the Globe.  

“WestJet believes the agency’s priority should be on improving its administration and ensuring that Canadians don’t have to wait years for a decision.” 

If approved, the new fees would come into effect in the fall of 2024.