Supreme Court to hear appeal from airlines on air passenger rights compensation

The Supreme Court of Canada agreed on Thursday to hear an appeal from a group of airlines looking to quash rules that boost compensation to passengers for delayed flights or damaged luggage. Air Canada, Porter Airlines and 16 other appellants argue that Canada's four-year-old passenger rights charter violates global standards and should be rendered invalid for international flights. The legal action that started in 2019 states that by imposing heftier compensation requirements for flight cancellations or lost baggage, the regulations exceed the Canadian Transportation Agency’s authority and contravene internationally agreed upon rules known as the Montreal Convention. In December, the Federal Court of Appeal dismissed the airlines' case, with the exception of one regulation that applies to the temporary loss of baggage. The Canadian Transportation Agency and attorney general argue there is no conflict between passenger protections and the Montreal Convention, a multilateral treaty. Under the federal rules, passengers must be compensated with up to $2,400 if they were denied boarding because a trip was overbooked — so-called flight bumping. Delays and other payments for cancelled flights warrant compensation of up to $1,000. Travelers can receive up to about $2,350 for lost or damage baggage, though the exact number fluctuates based on exchange rates. Air passenger rights advocate Gabor Lukacs, who was an intervener in the case at the Federal Court of Appeal, said the government could undercut the airlines' case by passing legislation that states the regulations are applicable and payable, regardless of the provisions of the Montreal Convention. <br/>