Last year, the Canadian Transportation Agency (CTA) ordered Sunwing Airlines to pay Mick Anslow and his wife $800 for a flight delay from Cancun, Mexico, to Regina in 2020.
The victory was short-lived. In May, the Federal Court of Appeal ruled that Sunwing can take the couple to court to challenge the CTA’s decision.
The Anslows learned of the legal action when they were served with court papers at their home in Regina.
“We were just kind of flabbergasted,” Mick Anslow said. “It’s just unbelievable that they would go this far over such a pittance…. They’re trying to make a point, I guess.”
The case centres on the contentious debate over when airlines can deny passengers compensation if flights are disrupted for safety reasons. In 2022, WestJet launched a legal challenge over the same issue. That case is also ongoing.
Mick Anslow and his wife first learned Sunwing was taking them to court when they were served with legal papers. Anslow’s wife’s name has been redacted at the couple’s request. (Federal Court of Appeal)
In the Sunwing case, court documents show that the airline and the CTA agree that Sunwing caused the mechanical problem that led to the Anslows’ flight delay.
“They screwed up,” Anslow said.
Even so, Sunwing argues that the flight was delayed for safety reasons, so it’s not obligated to pay compensation.
Safety issues ‘a big grey area’
According to Canada’s Air Passenger Protection Regulations, airlines must pay up to $1,000 for a flight disruption if it was caused by the airline. However, if the delay was “required for safety,” the airline pays zilch.
Some consumer advocates have long argued that the “required for safety” category is one of the regulations’ loopholes that airlines can use to avoid paying compensation.
“This is a big grey area,” said Ian Jack, vice-president of public affairs with the non-profit Canadian Automobile Association, which runs a travel agency.
“We felt since the start that the carriers have been taking advantage of that — to label things safety problems that may or may not be.”
Definitely feel for all of the people who may have been left stranded by <a href=”https://twitter.com/WestJet?ref_src=twsrc%5Etfw”>@WestJet</a> … <a href=”https://twitter.com/AirCanada?ref_src=twsrc%5Etfw”>@AirCanada</a> did the same to me and I had to end up paying and finding my own way home on a competitor airline… when I went to seek compensation, of course Air Canada claimed ‘safety’…
<a href=”https://twitter.com/CTA_gc?ref_src=twsrc%5Etfw”>@CTA_gc</a> We were delayed arriving at our final destination 15 hours. <a href=”https://twitter.com/WestJet?ref_src=twsrc%5Etfw”>@WestJet</a> denied our compensation claim, stating “unscheduled maintenance for safety”. They stated during delay they do not employ an on-call mechanic and that was the reason for delay. Why aren’t they liable?
More than a year ago, the federal government proposed new rules to clarify when airlines can deny compensation. Among the changes, the “required for safety” category would be axed.
In the meantime, Sunwing is proceeding with its case, and WestJet customers whose weekend travel plans were disrupted due to the airline’s labour dispute are still trying to understand their rights. Amid that chaos, Ottawa has yet to implement its clearer compensation rules or offer a timeline.
“We were told these [rules] would be coming in the winter, then we were told they’d be coming in the spring,” Jack said. “We’re getting concerned.”
Frozen bathroom pipes caused delay
The CTA serves as Canada’s transport regulator and settles disputes between airlines and customers.
The agency initially concluded in February 2023 that Sunwing must pay the Anslows a total of $800 for their 6.5-hour flight delay — a lower-than-usual amount due to special rules during the COVID-19 pandemic.
According to the CTA, pipes on the originally scheduled plane’s rear bathroom froze and burst, so the pilot changed planes, which delayed the flight.
Air Canada takes couple to court to overturn compensation ruling
Air Canada is going to court to overturn a ruling that it must compensate a B.C. couple for a delayed flight. Some experts say this could become a trend and other carriers could flood the courts with more cases.
The agency had determined that Sunwing must compensate the Anslows — plus any other passengers on the flight who filed claims — because the airline could have prevented the delay by turning on a pipe heater.
“It was a ground crew member that turned the heater off, and that’s why these pipes froze,” Anslow said.
But in court documents, Sunwing argues that the pilot changed planes for safety reasons — to ensure there were enough working bathrooms onboard, “perhaps especially in the context of the [pandemic].” As a result, the CTA “had no authority to order the payment of compensation,” the airlines claims.
CTA’s big backlog
The Anslows’ initial Sunwing complaint is one of the tens of thousands of passenger-airline compensation disputes the CTA has had to tackle since Ottawa introduced its air passenger regulations in late 2019. The agency currently has a backlog of more than 72,000 grievances, the majority of which involve flight disruptions.
The CTA recently streamlined the complaints process to resolve disputes more quickly. The rule changes Ottawa proposed last year are designed to help further reduce the backlog by requiring airlines to compensate passengers for all flight disruptions — unless they fall under a designated list of exceptions.
Proposed exceptions include weather, terrorism and labour disputes. At this point, safety issues as a broad category is not on the list.
“I am confident that the new regulations will bring more simplicity, will bring more clarity,” said Tom Oommen, director general of regulatory affairs. “I think that this clarity will reduce the need for complaints to be brought to the agency for resolution.”
Oommen couldn’t provide a timeline for when the regulations will be implemented. He said the CTA is currently deliberating over the long list of comments it has received from interested parties about the pending rules.
“We are now taking the time necessary,” he said. “We are looking at how to include — how to factor in the airline input as well as the consumer advocacy input.”
The safety debate
Airlines and other industry players have argued that eliminating the “required for safety” category when denying compensation is unreasonable.
“The CTA’s proposed list [of exceptions] completely ignores safety-related circumstances,” Jeff Morrison, president and CEO of the National Airlines Council of Canada, said in an email.
“Punishing airlines for following safety regulations and protocols lacks fairness.”
But consumer advocate Ian Jack said the European Union’s air passenger regulations, which include rules similar to those proposed by Ottawa, appear to work well.
Air passenger rights advocate Ian Jack of the Canadian Automobile Association says he’s concerned Canada’s proposed changes to simplify its compensation regulations haven’t arrived yet. (Stephane Richer/CBC)
“The carriers manage to get on with their business, to continue to be profitable, to not put planes in the sky that are unsafe,” he said.
One thing the coming regulations won’t do is prevent airlines from taking customers to court to try to overturn CTA decisions.
Mick Anslow said he hasn’t hired legal representation, and he hopes the CTA will defend him in court. The agency isn’t currently named in the case, but it can participate. The CTA told CBC News that as an independent body, it can’t represent Sunwing or the Anslows.
Anslow is now waiting for a court date. He said he believes the government’s proposed changes will help simplify the compensation process — for other passengers.
“It would probably make it easier, just based on what we’ve gone through,” he said. “Everybody’s trying to point the finger at everybody else.”
As of January 2024, Canada is home to more than 3,600 recreational cannabis retail shops and this number is increasing annually with a single store to every 10,000 Canadians. The retail sector has been facing multiple challenges and one is surely overabundance of stores within smaller communities. Too many retailers compared to users of cannabis. The use of cannabis has remained relatively the same, while multiple retailers and online sales forces are competing for this marketplace.
Failures within the retail field are not a surprise, as Tokyo Smoke closes its multiple stores, and most shops’ profit margins remain small and diminishing over time. Mass closures may happen within certain provinces such as Ontario where situations of multiple retailers are situated right beside a competitor. Massive amounts of revenue have been collected by provincial governments while these stores remain open to every possible financial flux possible.
The black market remains healthy and profitable. An excuse to legalize pot was to challenge illegal pot sales and make it difficult to sell this pot outside of legal means. 22% of Canadian pot smokers get their supply from the black market. They say the pot tastes better and is slightly less costly. Legal pot management is costly and this cost is passed onto the customer. With gummy sales growing, the cost of management by legal means is difficult and costly too.
It seems the government may need to rethink its policy regarding cannabis and the possibility of legalizing further types of illicit drugs in the future. A total ack of imagination exists within the policy network where old-fashioned prejudice towards addiction and the use of narcotics is seen as criminal and threatening to society. All the while the number of traffic stops due to drivers under the influence of narcotics continues to grow, and the use of drugs by the youthful generation continues to be a problem. A solution to our society’s problems will never come from present-day authorities.
TORONTO – At least one competition expert says the record $38.9 million fine against Cineplex Inc. is bound to encourage more action against companies engaged in a deceptive practice known as drip pricing.
The theatre operator was found late Monday to have engaged in the practice, where customers are drawn into a purchase without full disclosure of the final cost.
The Competition Bureau’s case against Cineplex related to a $1.50 charge many customers were forced to pay when purchasing movie tickets online.
Vass Bednar says these types of fees are common across many sectors, providing plenty of fodder for potential future cases that could delve into the pricing of airline, bus and concert tickets.
The executive director of McMaster University’s master of public policy program says the Competition Bureau’s success with the Cineplex case shows there’s no issue too small for the watchdog to go after.
Cineplex maintains it has always been upfront about its $1.50 online booking fees and has said it will appeal the fine levied by the Competition Tribunal.
This report by The Canadian Press was first published Sept. 24, 2024.
MONTREAL – The Caisse de dépôt et placement du Québec has signed a deal with Brookfield Asset Management and its institutional partners to buy their 25 per cent stake in British power company First Hydro Co.
Financial terms of the deal by the Quebec investment manager were not immediately available.
First Hydro is responsible for the management and operation of two power plants in Wales.
Emmanuel Jaclot, CDPQ’s executive vice-president and head of infrastructure, says the investment marks the fund’s first foray into pumped hydro storage.
French utility Engie is the majority shareholder in First Hydro with the remaining 75 per cent stake.
The deal is expected to close by the end of 2024.
This report by The Canadian Press was first published Sept. 24, 2024.
Companies in this story: (TSX:BAM)
Note to readers: This is a corrected story. The headline in an earlier version incorrectly stated the country where First Hydro is located.
