Particle.news
Download on the App Store

Canada Raises Max Airline Penalty to $1 Million for Repeated Passenger-Rights Violations

Ottawa will shift complaint adjudication to a neutral third party to clear a massive case backlog.

Overview

  • Transport Minister Steven MacKinnon announced a new $1 million ceiling on fines for airlines that repeatedly break passenger-rights rules, up from $250,000.
  • MacKinnon said upcoming legislation will require airlines to pay approved compensation to passengers within 30 days.
  • The government plans to bring in a neutral third-party dispute body to rule on cases, using U.K. and EU models as guides.
  • The Canadian Transportation Agency says about 95,000 complaints remain unresolved, highlighting why disputes are moving outside the regulator.
  • The air passenger protection rules took effect in 2019 and require compensation for delays or cancellations within an airline’s control, with penalties that have climbed from $25,000 to $250,000 in 2023 and now to $1 million.