Canada's Supreme Court will hear airlines' challenge of federal passenger protection rules

The Supreme Court of Canada has agreed to hear an appeal on a case concerning the scope of Canada's protections for air travellers, including rules for compensating passengers for cancelled or delayed flights and lost baggage.

The Supreme Court of Canada has agreed to hear an appeal on a case concerning the scope of Canada's protections for air travellers, including rules for compensating passengers for cancelled or delayed flights and lost baggage.

In 2020, the International Air Transportation Association, Air Canada, Porter Airlines and several foreign carriers filed a civil suit with the Federal Court of Appeal challenging a number of Canadian Transportation Agency (CTA) regulations.

The regulations, which the federal government directed the agency to create between 2018 and 2019, impose obligations on airlines in cases of flight delays, cancellations, boarding denial and lost or damaged luggage.

The regulations require that airlines explain to passengers the reasons for flight delays and cancellations and provide certain free services — such as food and drink and access to washrooms — if a flight is delayed on the tarmac and the disruption is within the airline's control.

The appellants argue the regulations overstep the CTA's authority under the Canada Transportation Act and contradict international law — particularly the Montreal Convention, a treaty on airline liability Canada signed in 2002.

The Federal Court unanimously dismissed the appeal in 2022 but agreed that a CTA regulation on compensation for delayed baggage went beyond the agency's authority.

The Supreme Court announced its decision to hear the case in a news release Thursday.