Airlines' appeal against Canadian passenger protections quashed in court

The Supreme Court of Canada has upheld its decision requiring airlines to compensate passengers for certain international flight disruptions.

The ruling was announced Friday, following an appeal brought forward by several airlines — including Air Canada, Porter and other international air carriers — looking to challenge Canada's Air Passenger Protection Regulations (APPR).

Canada's APPR was established in 2019 and "clarifies minimum requirements and compensation" airlines needed to provide to customers.

Moreover, the regulations highlight what compensation airlines need to provide to customers in situations involving international flight delays, and cancellation and denial of boarding.

Some of these cases require airlines to pay a set minimum amount of compensation and refund baggage fees paid by passengers when an airline has lost or damaged their baggage on international flights.

The airlines challenged the regulations, claiming that they contravened the Montreal Convention. This multilateral treaty established limits for what air carriers must pay regarding compensation for lost and damaged luggage and baggage delays.

The Federal Court of Appeal dismissed the challenge brought forward by the airlines in December, except for provisions related to the temporary loss of baggage.

This led the airlines to appeal to the Supreme Court to remove some parts of the regulations specifically concerning international air travel.

However, the court unanimously dismissed the airlines' appeal as "the compensation payable to passengers is not individualized and is not therefore an 'action for damages' limited by the Montreal Convention," stated the court’s ruling.

According to the Air Passenger Protection rules, passengers can be compensated up to $2,400 if they were denied boarding in the event that the disruption was in control of the airline. Customers can also granted up to $2,300 for lost or damaged baggage.

Dr. Gábor Lukács, Air Passenger Rights' president and also an intervener in the appeal, said he was "grateful that the court rejected the airlines' attempt to close the door and nail it shut on passenger protection in Canada.”"

"The decision upholds Canadian passengers' right to be treated fairly," he said in a statement.