Thank you, Mr. Chairman.
I'm very pleased to be speaking on Bill C-310 and leading off on the committee stage of debate on the airline passenger bill of rights.
I'd like to begin by thanking Mario Laframboise and the Bloc caucus and Dennis Bevington and the NDP caucus for their ongoing support of this bill. I'd also like to thank Gerry Byrne, Joe Volpe, and the Liberal caucus for supporting this bill at second reading. Without all three parties' support we would not be here today discussing the details of this bill.
Mr. Chairman, the Air Passengers' Bill of Rights flows from private member's motion 465, introduced last year by Gerry Byrne and passed unanimously by this House of Commons.
The motion has still not been acted upon by this government. Instead there was a voluntary agreement called “Flight Rights Canada”, which had no effect in law but did promise that tarmac delays, for example, would not exceed 90 minutes. Even the airlines now recognize that 90 minutes is the maximum time to confine people on a plane.
What did the airlines do? They proceeded to keep people on the tarmac for six or eight hours, just three months after they agreed on September 7 to adhere to flight rights. So much for flight rights.
On March 2, 2009, the airlines decided they would put flight rights in their tariff, voluntarily letting the Canadian Transportation Agency enforce it. Unfortunately, these tariffs are airline-specific, and the only passengers who will be protected are those on the four airlines that adopted flight rights. That's just four airlines. That doesn't even include all the Canadian airlines. For example, all foreign carriers would be excluded. That's why we need Bill C-310. Bill C-310 covers all carriers operating in Canada.
Furthermore, even if the four airlines do not follow their own tariffs, there are no penalties if they do not comply with the flight rights provisions. They did not follow through the last time, so why would we believe they would do so now?
We've heard criticisms that fares may rise as a result of Bill C-310. I ask you, did the fares rise as a result of Air Canada's president earning $26 million in 2007? If the airlines follow the rules in Bill C-310, they won't pay a cent.
The news media have tried to find out how much Air Canada has paid out to passengers in Europe as a result of the European legislation enacted in February 2005, and so far no one has been able to find out. How much did Air Canada pay under the previous European legislation in 1991, which dealt with denied boarding only? This information is important to know when determining the financial impact on the airline. Did Air Canada stop flying in Europe because of this legislation? Absolutely not.
Bill C-310 does not require an air carrier to pay compensation to a passenger with respect to a flight delayed or cancelled due to weather. A flight that is cancelled due to weather falls within the exemption that is provided for in the bill. We've taken the exclusion from the EU law and put it verbatim into the bill, giving the airlines the extraordinary circumstance exclusion that they've used in Europe for the last four years, and they're very familiar with it.
If the air carrier can prove that the cancellation was caused by extraordinary circumstances that could not have been avoided even if all reasonable measures had been taken, then the air carrier is not required to pay compensation to the passengers. This is the standard that has been adopted by the European Union. Cancellation due to weather clearly falls within this exemption and would not be covered by the bill.
All an air carrier is required to do in the case of cancellation due to weather is reimburse the passenger, which is reasonable; reroute the passenger; cover meals and refreshments in relation to the waiting, and there's absolutely nothing wrong with that; provide hotel accommodation if a stay of one or more nights is required; provide ground transportation between the airport and the place of accommodation; and provide a total of two telephone calls, fax calls, or e-mails. There's nothing here that is unreasonable for an air carrier to do.
The EU commissioned a study about two years ago, after the rules were in effect, and while the airlines have been aggressive in Europe in using the extraordinary circumstances argument to avoid paying compensation, all stakeholders agreed that the extraordinary circumstances exclusion was still a good and fair balance between the customer's right to compensation and fairness toward the airline.
There is a very comprehensive Steer Davies Gleave report, which I have here. It's probably 100-plus pages long. It studied this whole area and came to the conclusion that the extraordinary circumstances exclusion was the best vehicle to use in this circumstance.
The reason for extraordinary circumstances is to ensure that the bill is able to survive court challenges. In Europe it survived two. The bill covers denied boarding due to overbooked flights and encourages trying to get people off the flight by agreement, not by forcing them off the plane.
I was on a Northwest Airlines flight from Minneapolis several years ago. The airline had overbooked by six people, and volunteers to deplane were offered free passes. Everybody was happy with that result, and I'm sure they are still talking about it to this day. In Canada, for example, WestJet and Air North, Yukon's airline, do not overbook, so they will pay nothing.
The point is that happy customers are what the airlines need. If airlines have to deny boarding to customers involuntarily, then why should they not be paying the compensation of $500, $800, or $1,200, based on the length of the trip? The same compensation applies to cancelled flights. Europe has been doing this for four years, and Bill C-310 was inspired by the EU legislation, which has been in effect since February 17, 2005. Air Canada operates in Europe and under that legislation. The review panel notes that the EU airlines try to use the exemption as often as possible to avoid paying compensation to passengers. The airlines fought the EU legislation in court and lost. This legislation is sound and is backed up by the courts.
If MPs think that the penalties of the bill are too high, then they can propose amendments reducing penalties to a more appropriate level. In most cases, we accepted the compensation levels in the EU law. The original EU legislation from 1991—there was a bill in effect before 2005—dealt with denied boarding only. The compensation levels were only one half of what they are in Europe today. The 2005 rewrite to the EU legislation doubled the compensation and expanded the scope of the regulation to include cancellations, flight delays, and charter flights. The review panel that I spoke to you about said, just two years later, that the penalties were just fine the way they were; they were not too high and not too low.
Mr. Chairman, why should passengers not have a right to cancel and get a refund after a five-hour delay? Last year there were flights to Mexico that were cancelled through no fault of the people, and they were denied the right to get their money back. We say that if they're going to a cancel a flight, you have a right to a refund after a five-hour delay—not that many people will take them up on the option. Why should passengers not get a meal voucher after a two-hour delay? Why should passengers not get a $100 payment if the airline misplaces their baggage and doesn't notify them within an hour after finding it? Will $100 bankrupt the airlines? Or will it cause them to smarten up and stop misplacing the baggage in the first place, not notifying the passenger when the baggage is found?
Why should customers not expect better service? Why should passengers not be informed of flight changes, delays, and cancellations? Why should the new rules not be posted at the airline counters to inform customers of their rights and the process to file for compensation? Why should the public not expect all-in-one pricing, so that they know the total cost of the flight before they click the “buy” button?
While the intention of the legislation is for voluntary payment directly from the airline to the passengers, because EU carriers have fought the law so hard in Europe, it has taken the small claims court system to get settlements for passengers. There is no lawyer required. Passengers in Canada can still complain to the Canadian Transportation Agency, but as in Europe, the transportation agencies are not the ones that are getting the payments; it's the small claims courts that are getting people settlements. In fact, recently a large number of British Airways passengers received their settlements through small claims courts.
Mr. Chairman, Bill C-310 is fair to customers and to the airlines. The airlines who follow the rules will not pay a cent. Airlines that claim extraordinary circumstances too often will risk getting even tougher rules in the future. Bill C-310 applies to all Canadian air carriers and all air carrier operations that take place in Canada, rather than to the flight rights only, which cover only four carriers and have no specified penalties.
Why should an Air Canada customer receive better treatment in Europe than in Canada?
The airlines are suggesting that Bill C-310 is not flexible enough on tarmac delays.
Well, Mr. Chairman, paragraph 6(1)(d) on page 5 of the bill says: an opportunity to disembark from the aircraft if it is possible to do so without causing any undue risk to the health or safety of the passengers or any other person or to the safe operation of the aircraft or any other aircraft.
All the airlines have to do is keep fresh air and lights working, make sure the toilets are working, make sure food and water are provided, and allow for disembarkation if it's possible to do so without risk to the health or safety of the passengers. If they're unable to do these things, why should they not compensate passengers? If the $500 amount is too high, then bring in an amendment to lower it.
We need a law, but enforcement is a big issue. It's really up to the passengers themselves. They cannot take action if there's no law to protect them, but if there is a law, those passengers who are alert will take action.
I've answered the question many times about what it will cost the airlines, and the truth is it will cost the airlines nothing if they simply follow the rules.
Thank you, Mr. Chairman.