The Canadian Transportation Agency (CTA) is planning to decrease a $790 fee intended to have airlines cover air passenger complaints, following pressure from the airline industry and former transport minister Anita Anand, as revealed in internal documents. Information obtained through the Access to Information Act shows airlines vigorously opposed the fee, with Transport Canada and the former transport minister conveying similar concerns directly to the regulator. This situation has raised worries about political interference and the intended beneficiaries of the system, according to air passenger advocate Gábor Lukács.
The fee, mandated by Parliament in 2023 to aid airlines in addressing the rising costs associated with handling passenger complaints, has faced resistance from industry players. Concurrently, the federal government allocated nearly $76 million in temporary funding to help the CTA address a mounting backlog, with uncertainty about funding renewal. The proposed fee of $790, applicable to eligible complaints processed by the agency, underwent public consultations in fall 2024 but has not yet been put into effect.
Despite the parliamentary directive for implementation, delays persist, leading Lukács to criticize the CTA for not adhering to Parliament’s orders. The agency reports a surge in complaints, reaching a record 5,685 in January, contributing to a backlog of approximately 95,000 complaints, with some passengers waiting up to three years for resolution.
The lobbying efforts of airlines swiftly reached top government levels, with Anand receiving correspondence from WestJet criticizing the $790 fee and advocating for intervention. Anand, in turn, corresponded with CTA Chair France Pégeot, echoing WestJet’s concerns and raising issues about the fee amount and CTA efficiencies. The involvement of government officials in supporting airline interests has drawn condemnation from Lukács, who perceives it as undue advocacy for the airlines.
Amidst industry and government pressure, the CTA contemplated reducing the fee from $790 to $450 after public consultations, with Anand advocating for a steeper reduction to $250 for major airlines and $150 for smaller carriers. This push for lower fees, reflecting industry influence, has raised questions about the government’s role in regulating the aviation sector.
Airlines and Transport Canada have expressed concerns that higher fees could lead to unintended outcomes, potentially incentivizing carriers to settle complaints indiscriminately. The CTA is now exploring a revised fee structure that would apply only to unresolved complaints, signaling a shift in approach.
Despite the ongoing discussions and pressure, the implementation of the fee remains pending, with the CTA indicating a lack of urgency to enforce it. Anand has repeatedly urged the CTA to delay the fee until broader air passenger protection reforms are enacted, emphasizing the need for closer collaboration with her office. The reasons for the continued delay in fee implementation have not been clarified by the CTA.