Politics

As flight delays continue, here’s what to know about compensation

This summer, delayed and cancelled flights are common amid high demand for travel. Customers should find out if they can expect compensation from airlines according to federal regulations.

The Air Passenger Protection Regulations say ticket holders are entitled to financial compensation if they arrive at their destination at least three hours late, or if their flight was cancelled and the disruption was unrelated to safety issues or outside the airline’s control.

Air Canada and WestJet have been criticised for their explanations for the disruptions. Both Air Canada as well as WestJet blamed staff shortages for the safety issue. The Canadian Transportation Agency has denied that the absence of staff is valid under compensation rules.

CTA ruled that an airline could not use staff shortages as safety concerns. WestJet failed to meet that threshold in a July 8 ruling. The CTA ordered WestJet to pay the traveller what was owed.

CTA had previously examined the issue of disruptions in 2020. It found multiple communication issues that led to passenger frustration. However, it found no evidence that airlines intentionally misrepresented the reasons for cancellations and delays.

To dispute the airline’s decision, customers need to file a request in writing for compensation to the airlines, which then have 30 days to respond.

If a traveller is unsatisfied with the airline’s response they can then file a complaint to the CTA through the agency’s website, but a huge backlog means travellers could have to wait some time to get a response.

For the year ended March 31, the CTA was faced with a total 28,673 complaints. This included 12,158 new complains and the carry-overs from the previous fiscal year of 16,515 complaints. About half of the complaints related to flight disruptions. However, ticketing and reservations complaints numbered in the thousands.

The higher numbers come even though many travellers don’t bother to appeal their decision. According to an online survey by YouGov in 2019, up to two-thirds Canadian claimants abandon their claim after being rejected by the airline. However, awareness of the new rules could be improving.

Appealing could be worth it though, as a 2019 study by AirHelp, a German company that processes claims, showed that more than 50% of valid claims were rejected by airlines.

The potential payouts for customers vary depending on a few factors including how lengthy the delay is, how big the airline is and how much notice was given, as well as the question of whether the issue was within the airline’s control and not a safety issue.

If the trip is cancelled within 14 days, passengers are owed $1,000 if there was a cancellation or delay of more than nine hours, and between $400 to $700 if there were delays of three to nine or more hours.

For those informed more than two weeks in advance, they are owed alternate travel arrangements or a refund, at the traveller’s choice.

No matter how long a notice may be, a passenger who rejects a rebooking should be entitled to $400 compensation from large airlines and $125 from small airlines. In addition to a refund, they will also receive $400 compensation from large airlines.

If they are denied boarding due to overbooking, they could be charged between $900 and $2400 depending on how long it takes. There are also rules regarding compensation for lost or damaged baggage, which can reach up to $2300.

Added rights also come into force on Sept. 8 where even if the cause of the delay is outside the airline’s control, they must rebook the traveller within 48 hours on their or a competitor’s flight or the traveller will be eligible for a refund.

Previously, the passenger rights regime only required refunds for flight disruptions that were within the airline’s control, which excluded situations ranging from weather to war to unscheduled mechanical issues.

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