It is difficult to understand the logic behind the government's failure to enforce passenger rights. The problem is a long-standing one, but the pandemic has brought the systemic issue to the forefront.
The Canadian Transportation Agency, which is the federal body that's supposed to enforce passenger rights, has, over the past six to eight years, turned from an independent regulator into effectively a lapdog of the industry. There is a serious concern of regulatory capture. Some of the lead was coming from that direction, but it also seems that the airline lobby is profoundly active and efficient in persuading the government not to enforce consumer rights. Instead, it lets the airlines do as they please.