CTA gives Air Transat $295,000 penalty

Canadian Transportation Agency Press Release | December 1, 2017

Estimated reading time 4 minutes, 37 seconds.

The Canadian Transportation Agency (CTA) has issued its determination in the matter of the tarmac delays of Air Transat Flight Nos. 157 and 507, which occurred in Ottawa on July 31, 2017.

Air Transat's brand-new livery featuring the iconic star and touches of grey from its very first livery. Transat A.T. Photo
Air Transat acknowledged the CTA decision in a statement on Nov. 30 and said it it will offer $500 to each passenger of the four flights affected by the events in question. Transat A.T. Photo

In its determination, the CTA found that during the tarmac delays, Air Transat did not properly apply its own tariff rules (terms and conditions of carriage) related passenger disembarkment–because aircraft commanders did not consider the option to disembark passengers when the delay exceeded 90 minutes–and to the distribution of drinks and snacks.

The CTA also found that the air carrier was not relieved of its obligations to passengers simply because events beyond its control required diversion of the flights to Ottawa or because the actions of other parties contributed to the length of the delays.

Finally, the CTA found that it was unreasonable for the tariff’s Force Majeure rule to be as broadly worded as it was, and for pilots to have such wide discretion to decide whether or not to allow passengers to disembark, no matter how lengthy the tarmac delay.

Based on these findings, the CTA has ordered Air Transat to:

  • Compensate all passengers of the two flights for out-of-pocket expenses incurred as a result of the carrier’s failure to apply its tariff;
  • Ensure that its employees are properly trained on tariff provisions, policies, and procedures related to tarmac delays, and that employees understand these are legal obligations the air carrier is bound to respect;
  • Amend its international tariffs to incorporate the terms and conditions of its Contingency Plan for Lengthy Tarmac Delays at US Airports, which create a positive obligation for the air carrier to deplane passengers if a tarmac delay reaches four hours–unless there are safety, security, or air traffic control issues that prevent it- and require that during the delay, the air carrier provide passengers with updates every 30 minutes, working lavatories, and needed medical assistance; and
    Tighten the definition of Force Majeure in its tariffs.

Following this determination, a CTA designated enforcement officer issued a penalty of $295,000 against the air carrier.

Air Transat has been advised that the penalty may be reduced by the amount of compensation provided to passengers on the affected flights, excluding the refund of out of pocket expenses.

“This is a significant determination for air passengers and air carriers. It underscores that passengers have rights and recourse when their air travel is disrupted, and that even when problems stem from events such as bad weather, there is a minimum standard of treatment to which all passengers are entitled,” said Scott Streiner, chairperson and CEO of the CTA.

Meanwhile, Air Transat acknowledged the CTA decision in a statement on Nov. 30.

“Air Transat will take all necessary measures to comply with the CTA’s directives, including amending its tariffs and ensuring that its staff are adequately trained to meet its new commitments to passengers,” the company said.

The carrier said it has already begun implementing corrective measures and pledged to continue doing so as part of a continuous-improvement process.

“We reiterate our sincere apologies to our passengers who experienced a difficult situation,” said Air Transat president Jean-François Lemay. “For more than 30 years, we have been firmly committed to providing all of our customers with a quality experience. Air Transat welcomes the CTA’s clarification of carriers’ obligations in such circumstances and the agency’s invitation to all industry players to improve collaboration to ensure that such a situation does not reoccur,” he concluded.

Due to the extraordinary circumstances in this case, Air Transat said it will offer $500 to each passenger of the four flights affected by the events in question. The compensation will take into consideration sums already paid to passengers.

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