Internal government documents obtained by Go Public indicate that Transport Canada officials and successive transport ministers were involved in delaying and potentially undermining a plan to make airlines contribute to funding Canada’s air passenger complaints system.
The documents reveal that Transport Canada, under two different transport ministers, interfered with the Canadian Transportation Agency’s (CTA) work, which was directed by Parliament in 2023 to introduce a cost-recovery fee on airlines. Despite this directive, the fee has not been implemented over two and a half years later, leaving taxpayers to cover about $30 million annually to handle air passenger complaints, resulting in a backlog exceeding 88,000 cases.
Passengers facing issues like flight delays or lost luggage can file complaints with the CTA, but due to the overwhelmed system, Parliament instructed the agency to charge airlines a fee for cases involving eligible claims. Despite efforts to understand the delay in implementing the fee, the records obtained through an Access to Information request revealed various correspondences, internal discussions, and public consultation submissions between the CTA and multiple transport ministers.
Gábor Lukács, the founder of Air Passenger Rights, reviewed the documents and expressed concerns about government interference with the CTA’s independence. Both the CTA and Transport Canada declined interview requests, providing a general statement that did not address specific questions raised by Go Public.
Following Parliament’s directive in 2023, the CTA proposed charging $790 for each eligible passenger complaint, prompting public consultations where consumer groups supported the fee, while airlines opposed it, citing concerns about frivolous claims and cost-sharing.
A letter from former transport minister Anita Anand in October 2024 requested a delay in implementing the fee, claiming insufficient consultation and concerns about the proposed amount. However, legal experts criticized Anand’s stance as constitutionally inappropriate, stating that the agency, not the minister, should determine consultation adequacy.
Despite ongoing delays, the CTA expressed readiness to proceed with the fee implementation under a new transport minister. The internal documents highlighted the challenges posed by the delay, with Lukács accusing Transport Canada and ministers of sabotaging the fee implementation and interfering with the CTA’s autonomy.
As the situation unfolds, concerns remain about the impact on Canadians seeking compensation from airlines due to the unresolved backlog of air passenger complaints. Airlines have actively lobbied against the fee, further complicating the regulatory process and delaying the resolution of consumer complaints.
