Mounting Pressure on Canada’s Complaint Resolution System:
Since their introduction, the Air Passenger Protection Regulations (APPR) have established minimum standards governing air carriers’ obligations to passengers in circumstances involving flight delays, flight cancellations, denial of boarding, and other travel-related issues. Where disputes cannot be resolved directly between passengers and air carriers, the Canadian Transportation Agency (CTA) provides a forum for complaint adjudication.
However, Canada’s air passenger complaints system has faced growing challenges. As of September 29, 2026, the CTA had accumulated a backlog of 97,000 complaints, with resolution timelines extending to two years.
In response, the federal government introduced Bill C-31, proposing significant amendments to the Canada Transportation Act. On October 8, 2026, the Standing Senate Committee on Transport and Communications (the “Committee”) released a report on the subject of Bill C-31, examining the proposed reforms, raising important questions about the future of air passenger complaint resolution in Canada.
A New Approach to Complaint Resolution
In the Senate report, Transport Canada officials acknowledged that the existing APPR are “complex and ambiguous, thereby contributing to the backlog of complaints”. The officials emphasized the need to streamline the APPR and suggested that the Minister of Transport was “well placed” to balance passenger protections against the financial burden imposed on air carriers.
Accordingly, Bill C-31 proposes to transfer authority to make regulations respecting air passenger rights from the CTA to the Minister of Transport.
Bill C-31 also proposed significant changes to how air passenger complaints are resolved. In addition to permitting third-party organizations to address the existing backlog, the proposed framework would allow the Minister to select from three approaches for handling future complaints: retaining the current CTA-administered process, transferring administration to Transport Canada, or allowing government-approved private third-party organizations to resolve disputes under arrangements with air carriers.
These changes could fundamentally reshape the administration of Canada’s air passenger protection regime. However, the Committee identified several important considerations that may affect how the new framework is implemented.
The Committee’s Response: Balancing Efficiency and Fairness
While acknowledging the need for faster complaint resolution, the Committee expressed reservations about the proposed alternatives to the existing CTA process.
In particular, the Committee questioned the merits of transferring complaint resolution to Transport Canada. The Committee observed that Transport Canada would require significant time and resources in establishing a dispute-resolution function, including recruiting and training staff to mediate and adjudicate complaints. Given that the CTA already employs experienced complaints resolution officers, the Committee questioned whether transferring these responsibilities would meaningfully improve efficiency.
The Committee also considered the importance of ensuring independence and consistency in decisions rendered by private third-party organizations. Under the proposed framework, air carriers could contract with government-approved organizations to resolve passenger complaints. The Committee emphasized the need for appropriate safeguards to promote impartiality, transparency, and consistency across the dispute-resolution process.
To this end, the Committee recommended that the assignment of complaints to third-party organizations occur independently, rather than through the section of a particular organization by an air carrier. The Committee also recommended that passengers have access to an independent appeal process, initially through the CTA.
The Committee also considered whether a modest complaint-filing fee, refundable where a complaint is upheld, could help support the administration of the system. It also questioned why amendments to simplify the APPR, published in December 2024, had not been implemented. The proposed amendments would streamline remedies for complainants by replacing the existing flight disruption categories with a single compensation framework and by establishing an exhaustive list of circumstances in which carriers would be exempt from paying compensation.
Together, the Committee’s observations highlight a central challenge: improving the speed of complaint resolution without sacrificing the expertise, independence, and consistency of the decision-making process.
Looking Ahead: The Future of Air Passenger Complaints
As of October 2026, Bill C-31 remains under parliamentary consideration, and the proposed reforms have not yet become law.
For Canadian air carriers, the changes could have significant implications for complaint management, regulatory compliance, and dispute resolution. For passengers, the reforms could introduce new avenues for obtaining decisions on unresolved complaints.
Ultimately, the proposed framework represents a potentially significant shift in how Canada administers its air passenger protection regime. Whether the reforms achieve their intended efficiency goals will depend not only on the institutions tasked with adjudicating complaints, but also on the clarity of the underlying regulations and the procedural safeguards accompanying any new system.
For more information, please contact Tarek Umedaly or a member of our Aviation Practice Group.
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