New fee proposal could see airlines fork over millions for resolved complaints

A new proposal from the country’s transport regulator would charge airlines $790 for each passenger complaint it resolves — regardless of which party wins the dispute.

The Canadian Transportation Agency on Wednesday launched a one-month consultation on the proposed reforms, which would apply to valid customer complaints processed and settled by the regulator.

The agency estimates it will be able to close just over 22,600 air travel complaints per year, amounting to roughly $17.9 million in fees charged to airlines.

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It says the charge aims to cover 60 per cent of the projected $29.8-million annual cost of handling eligible complaints, with expenses stemming largely from salaries and benefits for the agency’s resolution officers.

While the fees could dissuade airlines from rule-breaking, passenger rights advocate Gabor Lukacs says the measure comes “too little, too late” and fails to serve as an adequate disincentive.

The transport agency says its backlog of air travel complaints now sits at a record high of about 78,000, driven in part by unprecedented tallies last year amid ongoing traveller frustrations.