Canada’s federal transport watchdog has proposed charging airlines a C$790 ($582) fee for every customer complaint it resolves – irrespective of whether or not it finds in the customer’s favour.
The Canadian Transportation Agency (CTA) says the figure is approximately 60% of the cost of resolving a complaint, and would generate around C$17.9 million annually.
It estimates that it resolves up to 22,615 complaints every year, resulting in costs – salaries, procurement and other services – of about C$29.8 million.
In a LinkedIn post on 22 September, WestJet chief executive Alexis von Hoensbroech blasted the plan as “contrary to the principles of natural justice”.
“This free spin on the roulette wheel may encourage complaints to be submitted even if they are unsubstantial in the hopes that airlines will settle to avoid such an out-sized processing fee,” he writes.
“This will not just cause a flood of additional complaints to the CTA, it will also further increase the cost of the already very expensive system at the expense of the travelling public who would eventually have to cover this through even higher air fares.”
The CTA changed its procedures to manage customer complaints in September 2023, after claims rocketed in the wake of the Covid-19 pandemic. The agency still has a backlog of thousands of complaints it has yet to resolve.
The fee, which is scheduled to be introduced later this year, will also be applied to complaints submitted prior to September 2023, the agency adds.
“I urge the federal government to guide the CTA toward a more rational approach, ensuring that airlines can operate effectively in Canada, where affordable air connectivity is essential,” von Hoensbroech adds. The fee, he says, ”is more than triple the average domestic airfare”.
”In what way does this drive improvement, justice, more competition or affordability for Canadians?”
The country’s biggest carrier, Air Canada, says the proposal is “concerning”.
“The airline would have to pay a high fee even when it is found to have been correct in its decision about whether compensation is due or not,” the company adds.
The proposal is is now subject to a one-month review period, ending on 21 October.
Updates on 23 September to add a statement from Air Canada.
