On December 18, 2020, the Minister of Transport directed the Canadian Transportation Agency (CTA) to draft regulations requiring air carriers to provide refunds in certain situations outside of their control (such as weather, COVID-19 in certain situations, medical emergency, security threat, and war or political instability). According to the Minister, the objective of the directive was to fill a gap in the legislation. After a series of consultations, the CTA published their proposed amendments to the Air Passenger Protection Regulations (APPR).
The current regime requires carriers to provide alternative travel arrangements following uncontrollable delays of three hours or more or uncontrollable cancellations. Large carriers (those that have transported at least two million passengers during each of the past two years) must provide alternative arrangements themselves or with a partner carrier within 48 hours from the end of the disrupting event. If unable to do this, the carrier must provide alternative arrangements operated by another carrier.
Under the proposed amendments, if a carrier (both large and small) cannot provide alternative arrangements within 48 hours from the original departure time, the carrier must provide the passenger with the option of a refund or the alternative arrangements described above. A passenger would be able to choose a refund any time before being provided with the alternative arrangements. The refund would include all unused add-on services, including seat selection and checked luggage fees.
The proposed amendments mandate that the carrier must provide the refund to the original form of payment within 7 days for tickets purchased by credit card, and within 20 days for tickets purchased by all other forms. A passenger may also accept a travel voucher or credit, as long as the passenger is informed of their right to a refund, the credit is worth more than the ticket, and the credit does not expire. The proposed amendments would be enforced by the CTA. Failing to comply with the regulations could lead to enforcement action and administrative monetary penalties.
The proposed amendments are not yet in force and are subject to the approval of the Administrator in Council. The CTA continues to accept representations from interested persons concerning the proposed regulations.
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