OTTAWA — Proposals from Canada’s transportation tribunal are causing turbulence in Canada’s air travel industry.
The Canadian Transportation Agency — responsible for adjudicating traveller disputes — is seeking to charge airlines a retroactive $790 fee per complaint, regardless of the outcome.
The proposal was published Sept. 18, the day before former Transport Minister Pablo Rodriguez stepped down.
According to the proposal, the agency processes 22,615 complaints annually, at a cost of just under $30 million.
That’s $1,316.72 per complaint — and means current complaint backlogs would take years to clear.
The proposed $790 fee represents 60% of the cost of each complaint, and will apply to complaints lodged before the policy comes into effect.
Last March, the CTA got a three-year, $76-million funding boost to clear the backlog — which sits at over 70,000 outstanding claims.
“All airlines will be billed once the charge comes into force and only for eligible complaints (processed and closed) where a start notice is issued after the coming into force date,” the proposal read.
“This includes complaints received prior to September 30, 2023.”
Andrew Gibbons, WestJet’s vice-president of external affairs, described the proposal as disturbing.
“We had hoped the agency would improve their administrative processing, we’re continually explaining to our guests that their wait (for a CTA decision) will take years,” he told the Sun.
“A handling fee, charged to airlines and their guests, will not improve service.”
In a statement, the CTA said 2023 changes to the Canada Transportation Act requires the CTA to recover costs associated with processing complaints.
“The legislation requires this regardless of the outcome of the complaint,” the statement read, adding that cost recovery is common for many Canadian regulatory agencies.
“Therefore, the proposed fee applies only to eligible air travel complaints closed through mediation or a decision.”
When reached for comment, a spokesperson for Transport Minister Anita Anand described the CTA as an arm’s length, independent agency.
“The agency is responsible for consulting on their cost recovery proposal, and it’s crucial that stakeholders, including airlines, have their voices heard,” the statement read.
“Minister Anand expects that these agencies are well-managed, transparent, and accountable to Canadians.”
Inquiries for comment to the Air Transport Association of Canada went unacknowledged.
Conservative Transport Critic Philip Lawrence told the Sun the CTA is no exception to the Trudeau Liberals’ ballooning costs of governance.
“Trudeau spent nearly $80 million and only made things worse for Canadians with a backlog of 70,000 complaints, leaving them waiting in limbo for years,” he said.
“Now his big idea is to do what he always does — raise costs and force Canadians to pay higher prices when those costs are passed on to consumers.”
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