As reported yesterday, a new proposal from the CTA would charge airlines $790 for each passenger complaint it resolves, regardless of which party wins the dispute. The proposed reforms would apply to valid customer complaints processed and settled by the regulator.
The CTA estimates it will be able to close just over 22,600 air travel complaints per year, amounting to roughly $17.9 million in fees charged to airlines. It says the charge aims to cover 60% of the projected $29.8-million annual cost of handling eligible complaints.
The CTA’s backlog of air travel complaints now sits at a record high of about 78,000, driven in part by unprecedented tallies last year amid ongoing traveller frustrations.
“WE’RE REVIEWING THE PROPOSAL”
Both Porter Airlines and Flair Airlines told Travelweek “no comment” for now as they’re focused on gathering their feedback to send to the CTA. Air Transat declined to comment as well.
“Flair will be making our submission to the CTA within the consultation period deadline and will provide no further comments until then,” said Flair’s director of communications, Kim Bowie.
Porter’s Director of Communications & Public Affairs, Brad Cicero, told Travelweek: “We’re reviewing the proposal and expect to make a submission to the CTA next month, so we’re still considering the details.”
“IT IS CONCERNING”: AIR CANADA
Air Canada is also planning to pass on its input to the CTA about the new proposed fee.
Air Canada spokesperson Peter Fitzpatrick shared Air Canada’s preliminary take on the situation with Travelweek.
“We are aware of this proposed fee and we will submit comprehensive comments to the CTA, but we can already say that it is concerning because the airline would have to pay a high fee even when it is found to have been correct in its decision about whether compensation is due or not,” said Fitzpatrick.
“This means an airline could be charged administrative fees for a complaint that are more than the average revenue it earns on a one-way fare, and more than the average compensation amount under the APPR, even when it has respected the regulations, as is often the finding of the CTA,” he added.
“THIS PROPOSAL SHOULD BE FIRMLY REJECTED”: WESTJET
Meanwhile Andy Gibbons, WestJet, Vice-President, External Affairs, shared WestJet’s initial reaction with Travelweek.
“This punitive proposal highlights a troubling disconnect between the Agency and the realities of Canada’s economy and aviation sector,” said Gibbons.
“WestJet believes the Agency’s priority should be on improving its administration and ensuring that Canadians don’t have to wait years for a decision, especially when air carriers are required to provide a response to a complaint in just 30 days under the Air Passenger Protection Regulations (APPR),” he added.
“Imposing additional costs on the aviation industry, which is already oversaturated with fees, is very concerning particularly during an affordability crisis in Canada. Our guests deserve a system that operates efficiently and effectively before any new fees are introduced. Given that more than $70 million in taxpayer dollars has already been allocated to the agency for processing complaints, this proposal should be firmly rejected,” said Gibbons.
With file from The Canadian Press