The Canadian Transportation Agency (CTA) is poised to decrease a $790 fee intended for airlines to cover air passenger complaints following pressure from the airline industry and former transport minister Anita Anand, as per internal documents. Information obtained through the Access to Information Act reveals that airlines vehemently opposed the fee, with Transport Canada and the former transport minister conveying those concerns to the regulator, despite its mandate to operate independently from the government.
Gábor Lukács, founder of Air Passenger Rights, expressed alarm over potential political interference and questioned whom the system truly serves. Parliament had mandated the air passenger complaints fee in 2023, as part of an initiative to make airlines contribute to the escalating expenses associated with managing passenger grievances. Concurrently, the federal government allocated nearly $76 million in temporary funding to address a mounting backlog, set to expire soon.
The CTA proposed a $790 fee for all eligible complaints processed by the agency, holding public consultations in fall 2024 without implementing the fee. Lukács criticized the delay, citing Parliament’s directive for implementation. The CTA reported a surge in complaints, receiving a record 5,685 in January, with a backlog of approximately 95,000 complaints, some unresolved for up to three years.
The documents highlighted the airline industry’s lobbying efforts, reaching high levels of government. WestJet and other stakeholders raised concerns about the fee’s magnitude and its impact on the industry, prompting Minister Anand to advocate for a lower fee. Anand’s actions raised questions about potential favoritism towards airlines, as noted by Lukács.
Industry advocacy led to a proposed reduction of the fee to $450, with Anand pushing for steeper cuts to $250 for large airlines and $150 for smaller carriers. The CTA considered these adjustments, with Transport Canada’s analysis indicating potential costs to taxpayers. Lukács criticized the government’s influence on the CTA, emphasizing the need for independence.
Concerns were also raised about the fee’s potential consequences, with airlines and officials cautioning about incentivizing payouts regardless of fault. The CTA contemplated a revised fee structure targeting unresolved complaints, as discussions stalled on implementing the fee.
Despite ongoing discussions and lobbying efforts, the fee implementation remains pending, with ongoing calls for broader consultations and regulatory changes. The CTA’s hesitance to proceed with the fee and Anand’s requests for delay and consultation underscore the complexity surrounding the issue.