Feds pressed regulator to cut airlines more slack around passenger compensation: docs

MONTREAL – The federal government pushed for travel rules that cut airlines more slack around paying compensation to passengers, despite resistance from Canada’s transport regulator, internal documents show.

Following legislation to reform the passenger rights charter in 2023, the Canadian Transportation Agency proposed regulations that would bar carriers from citing mechanical problems as a reason to deny customers compensation for flight delays or cancellations.

But regulators later conceded to changes that would exempt airlines from compensation payments if the trip disruptions resulted from mechanical issues, according to briefing notes prepared for then-transport minister Anita Anand and reviewed by The Canadian Press.

“I am disappointed that you are re-introducing issues related to the list of exceptional circumstances, namely mechanical malfunctions and labour disruptions. These issues were resolved months ago,” reads one note from the transport office drawn up in advance of a meeting between Anand and agency chairwoman France Pégeot on Nov. 20, 2024.

“I want to be clear: I expect that all the commitments and agreements you have reached with my predecessors stand, including those related to the inclusion of mechanical malfunctions and labour disruptions on the list of exceptional circumstances,” state the documents, obtained through the Access to Information Act.

The documents as well as records from a federal registry also reveal a heavy lobbying push by airlines, with the government echoing industry concerns in its efforts to scale back some of the regulator’s proposed reforms, as first reported by CBC News this week.

The transport minister’s office and the CTA did not respond immediately to requests for comment.

Passenger rights advocate Gabor Lukacs argues that government pressure on the agency following that lobbying campaign has failed customers, leaving them with a narrower range of compensation options than travellers in Europe enjoy thanks to what he calls the “loophole” for carriers.

“This is not evidence of wrongdoing. This is just ethically damning,” said Lukacs.

“The CTA is trying to do the right thing here, and the minister is the one who actually forces things to go the wrong way.” 

The agency first laid out a proposal for the scenarios under which flight disruptions could trigger compensation, including “technical problems that are an inherent part of normal airline operations,” in a consultation paper in November 2023.

The daft regulations that eventually nixed that point were published in late 2024, but progress on them has since stalled.

The unrevised Air Passenger Protection Regulations remain in effect, with any delay, cancellation or denial of boarding “that is within the carrier’s control but is required for safety purposes” still exempt from payouts to travellers.

This report by The Canadian Press was first published April 1, 2026.