Finance committee  Yes, we do have serious concerns about this, because this would be not just guidelines, as the name claims. When you look at the fine print, this will be legally binding, and legally binding guidelines that effectively alter the meaning, the extent and the way the regulations work.

Finance committee  I'm afraid I'm unable to agree with that. The government is unfortunately perpetuating existing loopholes, creating a new loophole that would allow airlines to avoid paying a penalty or paying a fine when they are caught breaking passenger rights, if they sign a so-called compliance agreement.

Finance committee  Thank you for the question. It's a pleasure to be here. There are two main differences that are worth mentioning. The first and the most important one is about closing the loophole with respect to the “required for safety” reasons. Bill C-327 would hard-code in the primary legislation that compensation is the norm and that the airline can avoid compensation only in truly extraordinary circumstances.

Finance committee  Unfortunately, the past four or five years have shown that the Canadian Transportation Agency is well positioned only to act in the airlines' private interests and does not serve the public interest. We have seen that recently during the pandemic in the refund versus voucher controversy.

Finance committee  Mr. Chair and honourable members, Air Passenger Rights is Canada's independent, non-profit organization of volunteers devoted to empowering travellers. We have a track record of successfully predicting shortcomings and loopholes in legislation related to air passenger rights. Five years ago, we testified before the House of Commons and the Senate respective committees and cautioned that the Transportation Modernization Act was inadequate.

Transport committee  I'm not suggesting fining those organizations. I'm saying that if these organizations cause damage to airlines, then, like any other player, the airlines should be reimbursed for that. However, if what we saw this past summer happens again, with the airlines knowing perfectly well that CATSA or CBSA didn't have adequate staffing and they still sold tickets, that's entirely within the airlines' control.

Transport committee  I don't have the data with me.

Transport committee  In terms of the cost aspect, insufficient competition also means that the ability of airlines to pass on costs is somewhat limited when you look at oligopolistic pricing. In terms of deterring airlines from certain routes, you know, operating an airline is not a charity. At the same time, they provide a service, and that service has to be reliable.

Transport committee  The main barrier to entry is foreign ownership requirements. Only a company that is deemed Canadian can operate a domestic service within Canada. Currently, if you have a Lufthansa flight coming into Toronto, they cannot pick up passengers from Toronto and transport them to Montreal before they fly back to Europe.

Transport committee  In terms of responding to the relationship between passengers and other players, that interface between CATSA should be with the airline. The international standard established by the Montreal Convention and the European regime is that passengers have a single address, and that's the airline.

Transport committee  The problem in Canada is that we don't have adequate competition when it comes to the airline industry. That relates to barriers to entry to market as well as limitations on foreign ownership when it comes to air travel services within Canada. What we are seeing is more a race to the bottom, as you have observed, than a meaningful competition in providing better service to passengers.

Transport committee  I do. I agree that we now need to take a different route, because when we were talking in the past, it didn't require some kind of crystal ball to see that the way this path, with respect to how the APPR, was constructed would result in the current situation. We predicted that already in February 2019, in a 52-page report that we published.

Transport committee  I do. Thank you for the question. There is also a set of regulations with respect to the transportation of persons with disabilities, which impose on the airline various responsibilities with respect to assistance and liability in the case of the damage, loss and delay in the transfer of mobility aids.

Transport committee  Thank you for the question. The law is already quite clear in this area that airlines have to re-book passengers on alternative flights. Certainly, that has been applicable to large carriers, both domestic and international. It is applicable through the Montreal Convention. Even the small carriers operating internationally...although it may be harder for passengers to enforce that.

Transport committee  Thank you for the question. When the pandemic started, several emails were floating between Transport Canada and the Canadian Transportation Agency—emanating primarily, it seems so far, from Air Transat—requesting help to defeat provincial consumer protection laws requiring refunds for passengers whose flights were not operating.