Internal government documents obtained by Go Public indicate that Transport Canada officials and successive transport ministers may have intentionally delayed and undermined 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, repeatedly interfered with the Canadian Transportation Agency’s (CTA) work, which was mandated by Parliament in 2023 to introduce a cost-recovery fee on airlines. Despite over two and a half years passing, the fee has not been implemented, leaving taxpayers to cover approximately $30 million annually for processing air passenger complaints, resulting in a backlog of over 88,000 claims.
Passengers facing issues like flight delays or lost luggage can file complaints with the CTA, but due to the overwhelmed system, Parliament directed the agency to charge airlines a fee for cases involving eligible passenger claims as a temporary measure.
Following an Access to Information request by Go Public, over 2,000 pages of records were examined, showing correspondences between the CTA, transport ministers, internal deliberations on addressing government concerns about the proposed fee, and feedback from a public consultation process.
Gábor Lukács, president of Air Passenger Rights, reviewed the documents and highlighted what he described as ministerial interference with the CTA’s independence. Despite requests for interviews, neither the CTA, the transport minister, nor Transport Canada provided detailed responses to specific queries.
In 2023, after Parliament directed the fee implementation, the CTA suggested a fee of $790 per eligible passenger complaint, prompting public consultations in 2024 with 83 written submissions. While consumer groups and the public supported the fee, airlines opposed it, citing concerns about incentivizing frivolous claims and suggesting passengers share in the complaint process costs.
Former transport minister Anita Anand’s letter in October 2024 requested a delay in implementing the fee, criticizing the CTA for proceeding with public consultations without her input, and questioning the fee amount. Anand’s successor, Chrystia Freeland, received a letter from the CTA expressing readiness to proceed with the fee implementation. However, the documents suggest ongoing delays orchestrated by Transport Canada and transport ministers, hindering the fee implementation despite Parliament’s directive.
The airline industry’s lobbying efforts, with almost 150 meetings held with government officials since the fee directive, have further complicated the situation. Constitutional law expert Pauly Daly criticized the delays, emphasizing that the CTA is obliged to act on Parliament’s directive and not consult indefinitely.
The internal documents underscore the detrimental impact of the delay, with the backlog of air passenger complaints growing, potentially causing years-long waits for compensation.