Canadian Transportation Agency Drafts New Air Passenger Refund Regulations

On December 18, 2020, the Minister of Transport directed the Canadian Transportation Agency (CTA) to draft regulations requiring air carriers to provide refunds in certain situations outside of their control (such as weather, COVID-19 in certain situations, medical emergency, security threat, and war or political instability). According to the Minister, the objective of the directive was to fill a gap in the legislation. After a series of consultations, the CTA published their proposed amendments to the Air Passenger Protection Regulations (APPR).

The current regime requires carriers to provide alternative travel arrangements following uncontrollable delays of three hours or more or uncontrollable cancellations. Large carriers (those that have transported at least two million passengers during each of the past two years) must provide alternative arrangements themselves or with a partner carrier within 48 hours from the end of the disrupting event. If unable to do