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Transport minister pledges to close passenger compensation loophole used by airlines

Transport Minister Omar Alghabra said Tuesday the federal government will close a loophole that allows airlines to deny customers compensation for cancelled flights.
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Earlier this week, the federal government pledged an additional $76 million to reduce the backlog of complaints at the Canadian Transportation Agency. The Canadian Press/Jonathan Hayward

Transport Minister Omar Alghabra said Tuesday the federal government will close a loophole that allows airlines to deny customers compensation for cancelled flights.

The reform will come as part of an overhaul of passenger rights to be tabled in Parliament this spring, he said at a press conference.

Asked whether he would end the exemption that lets carriers reject compensation claims by citing safety issues, Alghabra answered in the affirmative.

SA国际影视传媒淭he short answer is yes. We are working on strengthening and clarifying the rules to ensure that we make a distinction,SA国际影视传媒 he said.

SA国际影视传媒淥bviously we donSA国际影视传媒檛 want planes to fly when itSA国际影视传媒檚 unsafe to do so. But there are certain things that are within the control of the airlines, and we need to have clearer rules that puts the responsibility on the airlines when itSA国际影视传媒檚 their responsibility.SA国际影视传媒

AlghabraSA国际影视传媒檚 pledge came during a press conference at TorontoSA国际影视传媒檚 Pearson airport Tuesday morning, where he promised an additional $76 million to reduce the backlog of complaints at the Canadian Transportation Agency (CTA).

The money will allow the transport regulator to hire 200 more employees who can chip away at the 42,000 complaints currently filed there, he said.

SA国际影视传媒淭he backlog is huge.SA国际影视传媒

The announcement comes after the government boosted the agencySA国际影视传媒檚 funding by $11 million in last yearSA国际影视传媒檚 budget SA国际影视传媒 shortly before travel chaos erupted over the summer as flight demand surged, prompting another wave of complaints.

Gabor Lukacs, president of the Air Passenger Rights advocacy group, expressed skepticism that the new cash will make a big dent in the backlog.

SA国际影视传媒淭he government is throwing good money after bad,SA国际影视传媒 he said. SA国际影视传媒淚t will not improve lack of enforcement on its own.SA国际影视传媒

Alghabra hinted at other changes upcoming in a revamped passenger bill of rights, including potential reforms to the regulatorSA国际影视传媒檚 role as an investigative and enforcement body.

SA国际影视传媒淲e are looking at strengthening the rules, as I said, and perhaps looking at increasing the authorities that the CTA has. But I leave it up to the CTA to exercise its judgment and when and how to impose these fines,SA国际影视传媒 Alghabra told reporters.

The agency has a dual mandate as a tribunal handling complaints and a regulatory authority, though advocates say it has not gone far enough to punish violations under the latter.

The compensation loophole in CanadaSA国际影视传媒檚 Air Passenger Protection Regulations does not exist under European rules.

The European Union requires compensation on top of refunds if an airline cancels a flight for any reason that falls under its control SA国际影视传媒 mechanical problems or staffing shortages, for example SA国际影视传媒 covering most situations except for strikes, extreme weather or war.

In Canada, a flight cancelled fewer than 15 days before takeoff or delayed by three hours or more that is caused by an event within the airlineSA国际影视传媒檚 control also triggers a refund SA国际影视传媒 except in the case of safety-related concerns.

SA国际影视传媒擝y Christopher Reynolds, The Canadian Press, with files from Maan Alhmidi in Toronto.





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