CONSULTATION PAPER ON AIR PASSENGER PROTECTION REGULATIONS

CONSULTATION PAPER ON AIR PASSENGER PROTECTION REGULATIONS

Table f cntents Intrductin... 1 1: Airline's Obligatin t Cmmunicate Clearly... 3 2: Flight Delay, Cancellatin r Denial f Barding... 5 3: Tarmac Delay... 15 4: Lst r Damaged Baggage... 17 5: Seating f Children Under the Age f 14 Years... 18 6: Transprtatin f Musical Instruments... 19 7: Scpe f the New Regulatins... 20 8: Applicatin f the New Regulatins when Different Airlines are invlved... 21 9: Tariff Availability and Filing... 23 10: Transprtatin f Unaccmpanied Minrs... 24 11: Air Services Price Advertising... 25 12: Other tpics t include in a tariff... 26 13: Cmplaints and Enfrcement... 27 Yur Input... 29

Intrductin The Transprtatin Mdernizatin Act, which came int frce n May 23, 2018, amends the Canada Transprtatin Act (Act) t give the Canadian Transprtatin Agency (CTA) the authrity t make regulatins defining airlines' minimum bligatins t passengers with respect t: the cmmunicatin f passengers' rights and recurse ptins, flight delays and cancellatins, denied barding including bumping, tarmac delays f three hurs r mre, lst r damaged baggage, the seating f children under the age f 14 years, and, the develpment f terms and cnditins f carriage n the transprtatin f musical instruments. The CTA is Canada's lngest-standing independent, expert tribunal and regulatr. One f its cre mandates is cnsumer prtectin fr air passengers. The Act requires that each airline set ut its terms and cnditins f carriage in a legal dcument called a tariff. Until the recent amendments, airlines prepared their wn individual tariffs, and the CTA's rle was limited t ensuring that airlines had tariffs, applied their tariffs and that their tariffs' terms were reasnable. The new air passenger prtectin regulatins will ensure clearer, mre cnsistent passenger rights by establishing minimum standards f treatment, and in sme situatins minimum levels f cmpensatin that all airlines must prvide. The regulatins will als include updated prvisins regarding tariffs and air price advertising. 1 Once the regulatins cme int frce, airlines will have new bligatins twards passengers, including the bligatin t make infrmatin n any recurse available against the carrier as specified in the regulatins, readily available in a language that is simple, clear, and cncise. 1 In additin t develping these new regulatins, the CTA is updating ther regulatins as part f the Regulatry Mdernizatin Initiative that it launched in 2016. This includes integrating a number f existing regulatins and cdes int a cmprehensive, mdern accessible transprtatin regulatin, and updating regulatins related t air charter and licensing activities and t rail transprtatin. Page 1

We want t hear frm the travelling public, airline industry, cnsumer rights assciatins and ther interested Canadians as we develp these regulatins. This paper prvides a framewrk fr these cnsultatins. It pses specific questins and, where relevant, als ffers examples and cntextual infrmatin n: decisins made by the CTA with respect t airlines' individual tariffs, befre the recent amendments t the Act; prvisins f the Mntreal Cnventin 2, which is an internatinal treaty that establishes the maximum damages payable by airlines in the case f persnal injury r death, passenger delay, and lst, damaged r delayed baggage, when these events happen during internatinal air travel; and, rules made by the Eurpean Unin (EU) and United States f America (US) t prtect air passengers. These cnsultatins prvide the pprtunity fr Canadians and stakehlders t shape the regulatins. Cnsultatins will be cnducted ver a perid f abut three mnths. The regulatins will be prepared when the cnsultatins have been cmpleted and all input has been cnsidered, and will be subject t apprval by bth the CTA and Cabinet. Yu can prvide us yur input thrugh nline questinnaires and surveys, written submissins, r ne f ur eight in-persn cnsultatin hearings. We lk frward t hearing frm yu. 2 Cnventin fr the Unificatin f Certain Rules fr Internatinal Carriage by Air (Mntreal Cnventin) Page 2

1: Airline's Obligatin t Cmmunicate Clearly Legal prvisin The CTA is mandated t make regulatins: "respecting the carrier s bligatin t make terms and cnditins f carriage and infrmatin regarding any recurse available against the carrier, as specified in the regulatins, readily available t passengers in language that is simple, clear and cncise". This element f the regulatins will help ensure that passengers are aware f their rights and f what their ptins are if they believe that airlines aren't respecting thse rights. Examples f previus CTA decisins In a 2001 decisin invlving Air Canada, the CTA determined that the airline's tariff must describe the rights and bligatins f bth the airline and passengers in a clear way that avids ambiguity, uncertain meaning, and reasnable dubt. In a 2010 decisin dealing with Delta Air Lines, the CTA recgnized that tariffs shuld be written in a way that allws cnsumers t fully understand their rights, withut having t review ther dcuments such as internatinal treaties. EU and US rules The EU and US have requirements t ntify passengers f their rights in specific circumstances. Fr example, the EU requires that airlines prvide infrmatin cncerning passenger rights in the event f flight cancellatin, delay, r denied barding at check in at the airprt desk, n airprt kisks, and n line in a manner clearly visible and in as many relevant languages as pssible. The airline must als prvide written ntice t passengers directly affected by a flight cancellatin, delay, r denied barding f the rules fr cmpensatin and assistance. US rules require that airlines prvide passengers infrmatin, fr example, n denied barding cmpensatin bligatins, custmer service plans, tarmac delay cntingency plans and ther matters. Page 3

Questins 1. What is the key infrmatin that air passengers shuld receive n the airline's terms and cnditins f carriage and the recurse available t them? The key infrmatin that passengers shuld receive includes: Ticketing, Reservatin cnditins, Check-in & Barding, Refusal t carry & Limitatin f Carriage, Baggage, Schedule, delays (tarmac and ther delays), cancellatin f flight, Liability fr damage, Refunds, cmpensatin. It ught t be included in the airline s terms and cnditins f carriage. 2. Hw shuld this infrmatin be cmmunicated? Fr example, shuld it: be psted in physical lcatins such as airprts? Nt recmmended. appear n airline websites r apps? Yes be included in in-flight entertainment systems r magazines? Nt recmmended. be included with dcuments issued by the airline, such as e-tickets, itineraries, and/r barding passes? On E-tickets nly. 3. What criteria, if any, shuld be established t help ensure that the language used t cmmunicate passenger rights is simple, clear, and cncise? Create a simple Matrix table with the relevant details with a web link t the full tariff if required. 4. Shuld the regulatins give specific directin n the frmat r length f infrmatin dcuments summarizing passenger rights and recurse? Nt necessary. The Agency culd amend its Tariff guidelines and the airline wuld adpt r amend as necessary r required. Page 4

2: Flight Delay, Cancellatin r Denial f Barding Legal prvisin The CTA is mandated t make regulatins: "respecting the carrier s bligatins in the case f flight delay, flight cancellatin r denial f barding, including i. the minimum standards f treatment f passengers that the carrier is required t meet and the minimum cmpensatin the carrier is required t pay fr incnvenience when the delay, cancellatin r denial f barding is within the carrier's cntrl, ii. iii. iv. the minimum standards f treatment f passengers that the carrier is required t meet when the delay, cancellatin r denial f barding is within the carrier's cntrl, but is required fr safety purpses, including in situatins f mechanical malfunctins, the carrier's bligatin t ensure that passengers cmplete their itinerary when the delay, cancellatin r denial f barding is due t situatins utside the carrier's cntrl, such as natural phenmena and security events, and the carrier's bligatin t prvide timely infrmatin and assistance t passengers". Page 5

2.1. Flight Delay r Cancellatin Flight delays and cancellatins can ccur fr many reasns, including weather, air traffic cngestin, security issues, flight cnnectins, and the airline s cmmercial decisins. In this cntext, flight delays are understd t include all delays, whether passengers are in the terminal, n bard the aircraft, r smewhere else. Examples f previus CTA decisins In a 2012 decisin invlving Air Transat, the CTA rdered that passengers, nt the airline, be allwed t chse between cash r a travel vucher when being cmpensated fr flight cancellatins as well as denied barding due t verbking. The CTA als fund that the airline must refund and return a passenger t their pint f rigin at n additinal cst if their flight was cancelled (r delayed) and the cntinuatin f the passenger's travel n lnger serves a purpse. Air Canada and WestJet were als subject t similar CTA decisins. EU and US rules The EU has established a detailed set f requirements fr airlines in situatins f flight delays r cancellatins. These requirements include prviding passengers with infrmatin, refreshments, accmmdatin, reimbursement, re-ruting, and cmpensatin in the amunts f: a. EUR 250 fr all flights f 1,500 kilmetres r less; b. EUR 400 fr all intra-cmmunity flights f mre than 1,500 kilmetres, and fr all ther flights between 1,500 and 3,500 kilmetres; c. EUR 600 fr all flights nt falling under (a) r (b). In the US, there are n requirements fr what an airline must d fr delayed passengers, and airlines are nt required t cmpensate passengers n dmestic flights that have been delayed r cancelled. Questins GENERAL 1. The legislatin distinguishes between flight disruptins that are: within the airline's cntrl (in which case cmpensatin levels are applicable); within the airline's cntrl but required fr safety reasns, including disruptins due t mechanical malfunctins; and, Page 6

utside the airline's cntrl, such as disruptins due t natural phenmena and security events. Shuld any criteria be added t further differentiate between the three categries (e.g., where mechanical malfunctins raise safety issues and where they d nt)? If s, which criteria? Shuld the airline be required t declare the reasn fr the flight disruptin when the disruptin ccurs? Yes, it shuld and give a time estimate fr the resumptin f the flight. CANCELLATIONS OR DELAYS THAT ARE WITHIN THE AIRLINE'S CONTROL AND NOT REQUIRED FOR SAFETY PURPOSES Cmpensatin Levels 1. Shuld the level f cmpensatin established by the air passenger prtectin regulatins be the same fr any cancellatin and fr any delay that is within the airline's cntrl and nt required fr safety reasns? Shuld be different. If nt, what criteria shuld be used t set cmpensatin levels? Fr example, shuld the length f the delay (time) r the length f the flight (distance) be used, as is dne in the EU? The cncepts included in EU261 are part and parcel f all the EU carriers included thse nn-eu carriers wh serve an EU destinatin airprt. The criteria shuld be the same. 2. If the length f the delay is a factr in setting cmpensatin levels, what are the apprpriate starting and end pints fr calculating the delay? Fr example, shuld the expected time f arrival at the final destinatin as indicated n the barding pass, reservatin r ticket versus the actual time f arrival at the final destinatin be used t calculate the delay? Same as thse in EU261. 3. Taking int accunt any criteria yu prpse fr setting cmpensatin, what wuld be the apprpriate levels f cmpensatin fr flight cancellatins and delays that are within the airline's cntrl and nt required fr safety reasns? Fr Nrth America/Central/ - USA rules. Fr Suth America and all EU cuntries including the Middle East and Asia, EU 261 criteria. 4. Shuld cash be the nly frm f cmpensatin payable t passengers r shuld airlines be allwed t ffer passengers ther frms f cmpensatin? Fr example: N cash. travel vuchers valued at mre than the cash value ptin: Suggesting that if travel vuchers are used, that their value be 2 times the ticket r a certain maximum if used within 90 days. If used beynd the 90 day perid and up t ne year, then the vucher value shuld be equal t the ticket value. Page 7

frequent flyer pints : As an ptin; upgrades: nt suggested; cmplimentary tickets: nt suggested; Shuld airlines be exempted frm having t prvide cmpensatin if they prvide ample advance ntice f a flight cancellatin r delay? If s, what minimum advance ntice shuld be required fr such an exemptin? Yes, the advance ntice shuld be required fr an exemptin. Between 90 and 30 days prir t departure: N cmpensatin and ticket still valid and refundable and/r useable; Between 29 days and 21 days prir t departure: Cmpensatin f 25% and ticket still valid and refundable and/r useable; Between 20 days and 10 days prir t departure: Cmpensatin f 50% and ticket still valid and refundable and/r useable; Between 09 days and 03 days prir t departure: Cmpensatin f 75% and ticket still valid and refundable and/r useable; Between 02 days and the day f departure: Cmpensatin f 100% and ticket still valid and refundable and/r useable; The cmpensatin shuld nt be less than whatever else is regulated. Standard f passenger treatment 1. When and hw shuld an airline be required t ntify passengers that their flight is delayed r cancelled? ASAP published n airprt FIDS, airline s website/mbile app, text message. 2. Shuld airlines be required t ensure that affected passengers are re-bked n anther available flight in a reasnable time frame? Yes, it s required fr wn flights. Cnsideratin t be given fr the schedule frequency ffered. If s, what wuld cnstitute a reasnable perid f time, and shuld this bligatin apply even if it means that the airline has t bk passengers n flights with ther airlines? N mre than 24 hurs beynd the riginal departure time. 3. What ther measures r types f assistance shuld passengers receive when their flight is delayed r cancelled? Fr example: Meals: Accrding t the travel departure time and the expected length f the delay (Breakfast, lunch, dinner); refreshments Yes accmmdatins Depending n the length f the delay pprtunities t cmmunicate with friends, family, and clleagues Yes Page 8

status updates Yes ability t btain a refund r return t the pint f rigin if cntinued travel n lnger serves a purpse Ticket refund withut charge is preferred. If the travel is n lnger an ptin, return t the pint f rigin at n charge. 4. Shuld the standard f treatment vary depending n the length f the delay experienced by the passenger? If s, hw? N. Same treatment fr all. CANCELLATIONS OR DELAYS THAT ARE WITHIN THE AIRLINE'S CONTROL BUT REQUIRED FOR SAFETY PURPOSES Standard f passenger treatment 1. In what ways, if at all, shuld the required standard f treatment fr passengers be different in a situatin where the cancellatin r delay is within the airline's cntrl but necessary fr safety purpses, as cmpared with a situatin where the cancellatin r delay is within the airline's cntrl and nt required fr safety reasns? The required standard f treatment fr passengers shuld be the same and cmpensatin shuld apply. 2. Shuld there be any ther requirements t assist passengers and t prvide status updates t passengers? Nne mre than thse abve. CANCELLATIONS OR DELAYS THAT ARE OUTSIDE THE AIRLINE'S CONTROL Cmpletin f travel 1. In situatins f delay r cancellatin due t circumstances utside the airline's cntrl (e.g., natural phenmena and security events), what specifically shuld the airline be required t d t ensure passengers cmplete their itinerary? Shuld airlines be required t ensure that affected passengers are re-bked n anther available flight in a reasnable time frame? Yes. Airlines shuld be required t re-bk passengers, refund tickets withut cancellatin charges and pay cmpensatin. If s, what wuld cnstitute a reasnable perid f time, and shuld this bligatin apply even if it means that the airline has t bk passengers n flights with ther airlines? 24 hurs taking int accunt the airline s wn schedule. 2. Shuld there be any ther requirements t assist passengers and t prvide status updates t passengers? Nne mre than thse abve Page 9

2.2. Denied Barding Denied barding may ccur fr a variety f reasns, including bumping due t verbking r peratinal changes such as the substitutin f an aircraft. Examples f previus CTA decisins In a 2013 decisin invlving WestJet, the CTA determined that an airline's tariff must address the issue f verbking and that cmpensatin t be paid in the case f verbking must nt be limited t a flat sum, but must als cver expenses incurred by a passenger as a result f the verbking. The same year, in decisins invlving Air Canada, the CTA rdered that the cmpensatin paid by the airline fr denied barding be increased t the fllwing levels: Fr dmestic travel: Length f delay Cmpensatin 0-2 hurs CAN$200 2-6 hurs CAN$400 6 hurs r mre CAN$800 Fr internatinal travel: Length f delay Cmpensatin 0-4 hurs CAN$400 Over 4 hurs CAN$800 EU and US rules In the EU, passengers wh are denied barding against their will (ther than where the denied barding is n the grunds f health, safety r security r inadequate travel dcumentatin) are entitled t reimbursement r re-ruting, as well as cmpensatin in the same amunts as fr a cancelled r delayed flight, which were utlined in the preceding sectin f this paper. Passengers are als entitled t meals and refreshments, htel accmmdatin when and as necessary, and access t cmmunicatins. In the US, in situatins f denied barding due t verbking, cmpensatin is prvided as fllws: Page 10

Dmestic: Length f delay Mre than 1 and less than 2 hurs arrival delay Cmpensatin 200% f ne-way fare, up t max USD$675 2 hurs r mre arrival delay 400% f ne-way fare, up t max USD$1,350 Internatinal: Length f delay Mre than 1 and less than 4 hurs arrival delay Cmpensatin 200% f ne-way fare, up t max USD$675 4 hurs r mre arrival delay 400% f ne-way fare, up t max USD$1,350 Questins GENERAL The legislatin distinguishes between standards f treatment fr denied barding situatins that are: within the airline's cntrl (in which case cmpensatin levels are applicable); within the airline's cntrl but required fr safety reasns, including disruptins due t mechanical malfunctins; and, utside the airline's cntrl, such as disruptins due t natural phenmena and security events. Shuld any criteria be added t further differentiate between the three categries (e.g., where mechanical malfunctins raise safety issues and where they d nt)? If s, which criteria? Shuld the airline be required t declare the reasn fr the denied barding when it ccurs? Yes, it shuld. Page 11

DENIED BOARDING WITHIN THE AIRLINE'S CONTROL AND NOT REQUIRED FOR SAFETY PURPOSES Cmpensatin Levels Everyne wuld likely agree that when there are mre passengers with cnfirmed reservatins than seats n an aircraft fr reasns within the cntrl f an airline such as verbking the airline shuld lk fr vlunteers wh are prepared t take a later flight befre cnsidering the ptin f requiring smene t switch flights against their will. Arguably, the best way t make sure vlunteers are fund in such circumstances is t set sufficiently high minimum cmpensatin levels fr passengers wh are denied barding against their wishes. If the levels are high enugh, this will create strng incentives fr airlines t use methds (such as auctins) t find vlunteers whse plans are flexible and wh wuld be willing t switch flights fr mutually agreed upn cmpensatin. 1. What d yu think the minimum levels f cmpensatin shuld be in situatins when passengers are denied barding against their wishes? The amunts stated in Decisin N. 227-C-A-2013 quted abve. 2. What criteria culd be used t set cmpensatin levels? Fr example, shuld the length f the delay (time) r the length f the flight (distance) be used, as is dne in the EU? See respnse 1 here. 3. If the length f the delay is a factr fr setting cmpensatin levels, what are the apprpriate starting and end pints fr calculating the delay (fr example, the expected time f arrival at the final destinatin indicated n the barding pass, reservatin r ticket versus the passenger's actual arrival time at the final destinatin)? Minimum criteria f Decisin N. 227-C-A-2013. 4. Shuld cash be the nly frm f cmpensatin payable t passengers r shuld airlines be allwed t ffer passengers ther frms f cmpensatin? Fr example: travel vuchers valued at mre than the cash value ptin: Same respnse at Page 7 & 8. frequent flyer pints: As an ptin upgrades Nt suggested. cmplimentary tickets Nt suggested. 5. If n ne vlunteers, hw shuld an airline determine wh will be invluntarily denied barding? Examples f hw an airline might d this include: a. chsing the last persn(s) t check in fr the flight: One Optin b. chsing passengers wh have nt pre-selected their seats: One Optin but difficult t manage. Page 12

c. chsing nn-cnnecting passengers Nt suggested d. making a randm selectin Nt suggested e. exempting unaccmpanied minrs and/r families travelling with children Yes Standard f passenger treatment If denied barding ccurs due t reasns within the airline's cntrl, the passenger is entitled t a minimum standard f treatment frm the airline. This may include rebking n anther available flight and/r the prvisin f meals and refreshments. 1. In what ways, if at all, shuld the required standard f treatment fr passengers be different in a situatin where the denied barding is within the airline's cntrl but necessary fr safety purpses (fr example, an unavidable change f aircraft that has fewer seats), as cmpared with a situatin where the denied barding is within the airline's cntrl and nt required fr safety reasns (fr example, verbking)? There shuld be n difference in treatment. Ptential fr discriminatin. 2. When and hw shuld an airline be required t ntify a passenger that they will nt be barded n the flight? Upn passenger s checking-in. 3. Shuld airlines be required t ensure that affected passengers are re-bked n anther available flight in a reasnable time frame? Yes. Mandatry. If s, what wuld cnstitute a reasnable perid f time, and shuld this bligatin apply even if it means that the airline has t bk passengers n flights with ther airlines? 24 hurs 4. What ther measures r types f assistance shuld passengers receive when they have been denied barding? Fr example: a. Meals Depends n the time f day b. refreshments Yes c. accmmdatins Depends n the length f delay d. pprtunities t cmmunicate with friends, family, and clleagues Yes e. status updates Yes f. ability t btain a refund r return t the pint f rigin if cntinued travel n lnger serves a purpse Tickets refund withut penalty. 5. In what ways shuld the standard f treatment vary depending n the length f the delay experienced by the passenger? Nne. 6. Shuld there be any ther requirements t assist passengers and t prvide status updates t passengers? Apply the rules cnsistently Page 13

DENIED BOARDING THAT IS OUTSIDE THE AIRLINE'S CONTROL Cmpletin f travel 1. In situatins f denied barding due t circumstances utside the airline's cntrl (e.g., natural phenmena and security events), what specifically shuld the airline be required t d t ensure that passengers cmplete their itinerary? Shuld airlines be required t ensure that affected passengers are re-bked n anther available flight in a reasnable time frame? Yes. 24 hurs and r Tickets refund withut charge and/r cmpensatin. If s, what wuld cnstitute a reasnable perid f time, and shuld this bligatin apply even if it means that the airline has t bk passengers n flights with ther airlines? 24 hurs. 2. Shuld there be any ther requirements t assist passengers and t prvide status updates t passengers? Nne mre than what is required. Page 14

3: Tarmac Delay Legal prvisin The CTA is mandated t make regulatins "respecting the carrier s bligatins in the case f tarmac delays ver three hurs, including the bligatin t prvide timely infrmatin and assistance t passengers, as well as the minimum standards f treatment f passengers that the carrier is required t meet". Examples f previus CTA decisins Between August and Nvember 2017, the CTA inquired int the matter f the tarmac delays f Air Transat Flight Ns.157 and 507, which ccurred in Ottawa n July 31, 2017. In Decisin N. A-2017-194, in additin t findings that the carrier did nt prperly apply its tariff related t disembarkatin and t the distributin f drinks and snacks, the CTA fund that it was unreasnable fr pilts t have such wide discretin t decide whether r nt t allw passengers t disembark, n matter hw lengthy the tarmac delay. Based n these findings, the CTA rdered Air Transat t amend its internatinal tariffs t incrprate the terms and cnditins f its Cntingency Plan fr Lengthy Tarmac Delays at US Airprts, which create a psitive bligatin fr the air carrier t deplane passengers if a tarmac delay reaches fur hurs unless there are safety, security, r air traffic cntrl issues that prevent it - and require that during the delay, the air carrier prvide passengers with updates every 30 minutes, wrking lavatries, and needed medical assistance. EU and US rules The EU's passenger prtectin regime des nt currently include any bligatins related t tarmac delays. Hwever, prpsed regulatry amendments culd require that passengers receive drinking water and access t washrms after ne hur, and that adequate heating and cling be prvided in the passenger cabin. In additin, passengers culd be allwed t disembark after a delay f five hurs. The US rules require airlines t adpt and adhere t tarmac delay cntingency plans. In additin, airlines must nt permit an internatinal flight t remain n the tarmac at a U.S. airprt fr mre than fur hurs, r a dmestic flight mre than three hurs, withut allwing passengers t deplane, subject t safety and security issues, r directin frm air traffic cntrl. During a tarmac delay, passengers must be given an update n the situatin every 30 minutes, including reasns fr the delay if knwn, and be ntified f the pprtunity t deplane frm an aircraft that is at the gate r anther disembarkatin area. Finally, the airline must prvide adequate fd and water, ensure that lavatries are wrking, and, if necessary, prvide medical attentin during lng tarmac delays. Page 15

Questins 1. What is the apprpriate starting pint fr calculating a tarmac delay (e.g., the time at which the dr f the aircraft clses, the time at which the aircraft pulls away frm the gate, r the time at which the aircraft lands at an airprt)? the time at which the aircraft pulls away frm the gate, 2. Hw frequently shuld passengers be updated thrughut a tarmac delay? Every 30 mins What types f infrmatin shuld the airline be required t share? Flight status and new estimate flight departure time 3. What shuld be the minimum standard f treatment fr passengers wh wait n the tarmac fr ver three hurs? Fr example: a. Disembarkatin If pssible under security cnstraints and airprt availablility f Custms clearance, passenger hlding area and disembarkatin gates. b. water Yes c. fd Yes d. functining lavatries Yes e. medical attentin If necessary f. prper ventilatin Yes g. heating and cling Yes h. ability t cmmunicate with peple utside the aircraft If necessary due t medical needs Shuld certain airline bligatins nly kick in after a lengthier delay (e.g., fur r five hurs)? Beynd three hurs. Page 16

4: Lst r Damaged Baggage Legal prvisin The CTA is mandated t make regulatins "prescribing the minimum cmpensatin fr lst r damaged baggage that the carrier is required t pay". Examples f previus CTA decisins In a 2010 decisin invlving WestJet, the CTA fund that an airline's limit f liability fr baggage n dmestic travel was unreasnable, and directed the airline t reflect in their tariff the higher limit set ut in the Mntreal Cnventin. The CTA has als issued a number f decisins dealing with the prper applicatin f the baggage-related sectins f airlines' tariffs. Fr example, in a 2017 decisin, the CTA fund that British Airways did nt prperly apply its tariff and rdered the airline t cmpensate the passenger fr the value f the lss f his baggage in the amunt f CAN$2,053.84. Mntreal Cnventin prvisins The Mntreal Cnventin sets the maximum liability fr damages fr lst, damaged r delayed baggage at 1,131 Special Drawing Rights (apprximately CAN$2,100) n internatinal travel; there is n minimum cmpensatin level. EU and US rules The EU and US, like Canada, have ratified the Mntreal Cnventin fr internatinal air travel. The EU passenger prtectin regime establishes the same baggage liability parameters fr dmestic air travel. The US dmestic regime prhibits airlines frm setting a maximum cmpensatin limit belw $3,500 US per passenger. Neither jurisdictin sets minimum cmpensatin levels. Questins 1. What shuld be the minimum cmpensatin that airlines are required t pay when baggage is lst r damaged? Optins might include: a. a refund f baggage fees: Initially, all fees paid, as applicable, fr 1 st bag, 2 nd bag and any excess baggage fee b. payments reflective f the financial lss suffered by the passenger, perhaps up t a certain maximum Certain maximum shuld be required r prf f lss whichever is greater. 2. What criteria shuld be used t determine if a bag has been lst r damaged? Lss reprt t the airline r its agent and baggage tag(s). 3. What evidence shuld a claimant have t submit t receive cmpensatin fr lst r damaged baggage? Baggage tag r baggage receipt Page 17

5: Seating f Children Under the Age f 14 Years Legal prvisin The CTA is mandated t make regulatins "respecting the carrier s bligatin t facilitate the assignment f seats t children under the age f 14 years in clse prximity t a parent, guardian r tutr at n additinal cst and t make the carrier s terms and cnditins and practices in this respect readily available t passengers". Examples f previus CTA decisins In a 2014 decisin, the CTA rdered Air Canada, WestJet, Prter, Jazz, Air Transat and Sunwing t set ut plicies in their tariffs with respect t the seating f children, and t make reasnable effrts t ensure that children are seated with an accmpanying parent r guardian. Questins 1. Hw shuld "clse prximity" be defined in the air passenger prtectin regulatins (e.g., adjacent seat, same rw, r within three rws)? Within three rws Shuld the maximum acceptable seating distance between the child and a parent r guardian depend n the child's age? Yes. Minimum 8 years. 2. Hw shuld an airline "facilitate" the assignment f seating? Best effrts depending n seat ccupancy and nt as a guarantee What measures shuld an airline take t ensure that children are seated in clse prximity t a parent r guardian? Advise the passengers wh are traveling with children at time f bking that they can preselect seats and such is recmmended t secure seating in clse prximity. Cst may be an issue and perhaps a flat fee fr the family (4-5 passengers maximum) may help slve the issue.. 3. What steps shuld an airline be required t take t ensure that its terms and cnditins and practices with respect t the seating f children are made readily available t passengers? Advise at time f bking. If nline, display a nte t that effect r call the reservatin center. Shuld there be any specific bligatins in this regard at the time a flight is bked fr a child under the age f 14 and/r at the time f check in? Suggested t call the airline r deal with a travel agent. Page 18

6: Transprtatin f Musical Instruments Legal prvisin The CTA is mandated t make regulatins "requiring the carrier t establish terms and cnditins f carriage with regard t the transprtatin f musical instruments". Questin: 1. What specific elements shuld an airline be required t address in its tariff prvisins regarding the transprtatin f musical instruments? Fr example: a. carry-n and checked baggage requirements fr small and large instruments Yes b. cabin strage ptins Yes c. additinal fees Yes d. requirements in circumstances f aircraft substitutin that has space cnstraints fr the instrument Yes Page 19

7: Scpe f the New Regulatins Legal prvisin The law states that the air passenger prtectin regulatins that the CTA will make with respect t the issues in the previus six sectins shuld be "in relatin t flights t, frm and within Canada, including cnnecting flights". This new mandate culd be infrmed by a lng-standing prvisin f the Act, which states that the CTA's air-related regulatins "may be cnditinal r uncnditinal r qualified r unqualified and may be general r restricted t a specific area, persn r thing r grup r class f persn r things." In plain language, this means that specific requirements established in the air passenger prtectin regulatins culd apply t sme rather than all airlines. EU and US rules Sme passenger prtectin requirements in the EU and US are differentiated by airline type r apply nly t certain classes f airlines. Fr example, the bligatin in the US t have a tarmac delay cntingency plan nly exists if an airline is "a certificated carrier, a cmmuter carrier, r a freign air carrier perating t, frm r within the United States, cnducting scheduled passenger service r public charter service with at least ne aircraft having a designed seating capacity f 30 r mre seats." Questin 1. Shuld any f the bligatins set ut in the air passenger prtectin regulatins be mdified fr certain types f airlines; fr example, small airlines perating small aircraft? If s, which bligatins, which types f airlines, and why? Airlines perating small aircraft shuld be exempted in all areas f Canada. Airlines perating in Nrthern areas f Canada shuld be exempted n matter the size f aircraft. Page 20

8: Applicatin f the New Regulatins when Different Airlines are invlved Increasingly, airlines partner cperate thrugh arrangements like cde sharing, interlining and jint ventures. 3 These arrangements allw ne airline t sell an itinerary that includes flights with multiple airlines. These arrangements raise questins as t which airline the marketing airline, the perating airline, r sme cmbinatin f the tw shuld have bligatins twards passengers if there are issues with flights. LEGAL PROVISION The law mandates the CTA t make regulatins utlining airline bligatins with respect t specific issues "in relatin t flights t, frm and within Canada, including cnnecting flights". Examples f previus CTA decisins In a 2013 decisin, the CTA indicated that fr cde shares, the marketing airline's terms and cnditins apply, while fr interline tickets, each airline's terms and cnditins apply t their respective sectins f the itinerary. EU and US rules In the EU, when there is mre than ne airline invlved in prviding the air service, it is the perating airline that is respnsible fr fulfilling any bligatins with respect t the cnsumer prtectin regulatins. In the US, the requirements vary. Fr example, in the case f tarmac delays, if there is a partnership between an airline r multiple airlines, the marketing and the perating airlines are respnsible in an enfrcement cntext fr cmplying with the tarmac delay cntingency plan, including deplaning passengers n internatinal flights. In the case f lst and damaged baggage, it is the marketing airline that must address any issues. 3 A cde share refers t an arrangement where a licensed air carrier prvides services by selling transprtatin in its name n flights perated by anther carrier. Interline travel is transprtatin using tw r mre carriers perating under their wn terms and cnditins. Fr cnvenience f the passenger and the participating carriers, all segments f the interline travel appear n the same ticket and the fare fr the jurney is paid t the ticketing carrier and later distributed between the carriers prviding the transprtatin. Jint ventures are frmal arrangements between tw r mre air carriers prviding air services. Page 21

Questins 1. When a single itinerary includes flights with multiple airlines, in which f the fllwing areas shuld the marketing airline be respnsible (regardless f whether an issue arises n ne f its flights r n flights perated by ne f its partner airlines)? a. Airline's bligatin t cmmunicate clearly Yes b. Flight delays and cancellatins Yes c. Denied barding N Operating airline d. Tarmac delays N Operating airline e. Lst r damaged baggage N Operating airline f. Seating f children under the age f 14 years N Operating airline g. Transprtatin f musical instruments N Operating airline In which areas shuld the perating airline be respnsible? a b c d e f g 2. Shuld the answer t the previus questin change fr different srts f cperatin arrangements (e.g., cde sharing, interlining, and jint ventures)? Yes, the answer might be different accrding t the relevant Air Services Agreement. 3. Shuld the air passenger prtectin regulatins require that marketing airlines explain t passengers which airline is respnsible fr which issues when selling an itinerary that includes flights with several airlines? Yes Page 22

9: Tariff Availability and Filing In additin t setting cmpensatin levels and standards f treatment fr the varius situatins listed in sectins 1 t 6 f this paper, the new air passenger prtectin regulatins will include updated bligatins arund tariffs. Tariffs are dcuments that set ut the airline's fares, rates, charges and terms and cnditins f carriage. The requirements set ut in the new regulatins will be deemed t frm part f an airline's tariff, t the extent that the tariff des nt prvide better terms and cnditins. Currently, an airline's tariff must be publicly available fr inspectin anywhere an airline sells its transprtatin services r receives gds fr transprtatin, including its business ffice. In additin, internatinal airlines have t file their tariffs with the CTA and keep the tariffs n file upt-date with respect t prices (fares, rates r charges). The CTA prcesses abut 1,500 terms and cnditins filings and 27,000 fare filings per year. In a rapidly changing wrld characterized by transitins in multiple areas away frm paper and twards e-business, these traditinal appraches t tariffs may need updating. EU and US rules The EU has n specific tariff filing requirements. Hwever, the EU requires airlines t cmmunicate t the general public the cnditins applicable t any fare and air rate ffered r published in any frm, including n the internet. In the US, airlines are nt required t file their dmestic passenger fares and rules with the US Department f Transprtatin. Airlines are, hwever, required fr internatinal travel t file tariffs cntaining sme "general rules" such as cnditins f carriage, baggage allwances and liability. The US als has website psting requirements. Questins 1. Fr passengers, what measures, if any, wuld make it easier t access and understand an airline's tariff, beynd the terms and cnditins already cvered under issue 1? Transparency. Plain language cnditins f carriage as stated abve t be printed in the e-ticket when issued. Are there electrnic ptins that wuld help ensure the transparency and clarity f an airline's bligatins twards their custmers? If s, what are the electrnic ptins fr satisfying this requirement? Fr thse interested, refer t the CTA database. 2. Shuld the filing requirements fr internatinal airlines be retained? Yes. Cnditins f carriage nly and if an Air Services Agreement requires it, psting the applicable fares and ensuing filing t ensure that there is a reference fr validatin purpses. If s, are there electrnic filing ptins that wuld simplify the filing prcess withut cmprmising the timeliness r cmpleteness f filings? The current ATPC filing prcess is apprpriate. In-huse tariffs culd benefit frm a shrtened filing time. Page 23

10: Transprtatin f Unaccmpanied Minrs Under the current Air Transprtatin Regulatins, airlines are required t include plicies abut the transprtatin f children in their tariffs, including their plicies n unaccmpanied minrs, if applicable. The regulatins d nt say what the plicies n unaccmpanied minrs shuld cver. Sme airlines allw children f different ages t travel unaccmpanied r allw lder children t accmpany yunger children. Internatinal Standards Canada is a signatry t the Cnventin n Internatinal Civil Aviatin (Cnventin), which is managed and administered by the Internatinal Civil Aviatin Organizatin. The Cnventin sets ut internatinal standards fr air travel, including rules f airspace and safety standards. New standards have been incrprated int the Cnventin regarding the transprtatin f unaccmpanied minrs. These standards specify that aircraft peratrs must establish a prgram fr the transprtatin f unaccmpanied minrs travelling under their supervisin and they cannt allw minrs under the age f five t travel withut an accmpanying persn. T supprt the standards, the term "accmpanying persn" is defined as: "An adult travelling with a minr. This persn will nt necessarily be the parent r legal guardian f the minr". A "minr" is defined as "( ) a persn wh has nt attained the age f majrity as determined under the law applicable t the persn". The age t be cnsidered an "adult" varies in Canada, internatinally and in airline practices. Under the Cnventin, Canada must ensure that regulatins fr internatinal flights t and frm Canada align with the new internatinal standards. Questins 1. The age t be cnsidered an "adult" varies in Canada, internatinally and in airline practices. What shuld be the age f an "adult" fr the purpse f applying the definitin f an "accmpanying persn"? 16 years as a general rule 2. Shuld similar standards apply n dmestic flights? If s, are there specific factrs that the CTA shuld cnsider? If nt, please prvide a justificatin. Same rules fr Dmestic r Internatinal and, in case f cnnecting t an Internatinal flight, the mre restrictive ptin(s) t apply. Page 24

11: Air Services Price Advertising In 2012, regulatry requirements with respect t air price advertising were intrduced t help cnsumers easily determine the ttal price f advertised air services and the cmpnents f the ttal price, and encurage fair cmpetitin amng advertisers f air services. These requirements will be incrprated int the new air passenger prtectin regulatins. The current rules state that air price advertising directed at the public must include the ttal price, inclusive f all taxes, fees and charges that a cnsumer must pay t btain the air service. It must als include any ptinal services that are being ffered and at what price they are available (e.g., seat selectin, seat upgrades, baggage fees). The regulatins apply t any persn wh advertises air prices fr travel within r riginating in Canada that is directed t the Canadian public. They d nt apply t air carg services, charter services negtiated with a private business r fares available thrugh crprate travel ffices (and nt available t the general public) r displayed thrugh a glbal distributin service, package travel services, services riginating utside Canada, and lyalty reward prgrams. These exclusins frm the regulatins may prevent cnsumers frm btaining cnsistent infrmatin acrss all travel ptins, ptentially affecting fair cmpetitin in the market. Further, with the emergence f new appraches t airline tickets sales -- fr example, the use f nline auctins t sell seats -- the current requirements may impse cnstraints n sme innvative pricing strategies that culd be t the benefit f bth cnsumers and airlines. Questins 1. Are any changes in the regulatins needed t help cnsumers easily determine the ttal price f advertised air services including the separate cmpnents f the ttal price and the ttal price f any ptinal services that an airline may ffer as part f a passenger's itinerary? N 2. Shuld the applicatin f the air price advertising requirements be extended t ther air travel services (e.g., charter airlines and tur peratr packages)? N 3. Shuld the rules be changed t accmmdate innvative sales appraches like auctins/price bidding? If s, what safeguards, if any, are needed t ensure price transparency? Yes. Minimum bidding price must be made available. Page 25

12: Other tpics t include in a tariff The infrmatin that must be included in an airline's tariff ges beynd the tpics addressed abve. The current Air Transprtatin Regulatins require that an airline's tariff include terms and cnditins stating the airline's plicies n certain matters. As well, the CTA has the authrity under the Act t establish what infrmatin shuld be cntained in a tariff. Currently, an airline's tariff must include its plicies n an array f issues such as ticket reservatin requirements, check-in and barding requirements, limitatins f liability, and refunds. Passengers can file a cmplaint with the CTA if the airline's plicies are nt specified in the tariff, r if they believe that the tariff is unclear, unreasnable r unduly discriminatry. Recgnizing that the new regulatins will set ut airlines' minimum bligatins with respect t sme matters, it may be useful fr airlines t include ther items in their tariffs in rder t prvide greater clarity fr passengers. Questins 1. Are there ther tpics that airlines shuld be required t address in their tariffs? Sme pssibilities culd include: treatment f passengers delayed n bard an aircraft befre the specific requirements fr a tarmac delay f mre than three hurs kicks in: See respnses abve in Sectin 2 and 3 baggage acceptance plicies, including allwances and charges. Current plicies and requirements appear, generally, satisfactry withut the need t add anther layer f regulatins ancillary services plicies, including seat selectin fees: Current plicies and requirements appear, generally, satisfactry withut the need t add anther layer f regulatins carrier-perated frequent flyer prgrams: Current plicies and requirements appear, generally, satisfactry withut the need t add anther layer f regulatins transprtatin f animals: Current plicies and requirements appear, generally, satisfactry withut the need t add anther layer f regulatins. Any cnsideratin t define what is a service animal? and what kind f an animal? A cmfrt animal? Page 26

13: Cmplaints and Enfrcement Cmplaints When the new air passenger prtectin regulatins cme int effect, airlines will be required t fllw the new bligatins. Passengers wh believe that the airline has nt fllwed its bligatins culd first raise the issue with the airline, and will have the ptin f filing a cmplaint with the CTA. If the CTA finds that the airline has nt fllwed its bligatins, it will be able t take crrective measures (fr example, rdering the airline t reimburse expenses incurred by the passenger r that the level f cmpensatin prescribed in the regulatins be paid). Enfrcement As well, an enfrcement fficer will have the ptin t issue administrative mnetary penalties (AMPs) against an airline fr nn-cmpliance with the new air passenger prtectin regulatins. AMPs are fines impsed by an enfrcement fficer when they find that an airline has vilated certain bligatins that have been designated by the CTA. Cmpared with ther enfrcement prcesses, AMPs are a relatively efficient way f dealing with situatins f nn-cmpliance. Fr example, an enfrcement fficer can currently impse AMPs n an airline fr failure t: make its tariff publicly available fr inspectin anywhere it sells its transprtatin services r receives gds fr transprtatin, including its business ffice; publish its terms and cnditins f carriage n any Internet site used fr selling its dmestic service; include in its tariff the airline's plicy with respect t matters prescribed by regulatins. An enfrcement fficer can als impse AMPs if the CTA finds that an airline applies a fare, rate, charge r term r cnditin f carriage that is nt set ut in its tariff r if it finds that an airline applies r advertises a term r cnditins that is suspended r disallwed by the CTA. LEGAL PROVISION The CTA can, by regulatin, designate any prvisin f the Act r any regulatin made under the Act as subject t AMPs. EU and US rules The US can issue fines fr certain air passenger rules, including thse dealing with tarmac delays. The EU rules d nt prescribe mnetary penalties in relatin t its air travel regulatins. Page 27

Questins 1. What type f guidance wuld be helpful fr passengers n hw t make a cmplaint t the CTA relating t the new air passenger prtectin regulatins?: The current guidance n the CTA website and varius frms prvided appears t be ding fulfilling its purpse. 2. Shuld all f the new bligatins established by the air passenger prtectin regulatins als be enfrceable thrugh AMPs? If nt, please prvide a justificatin. N. May be! That wuld stifle creativity and be cntrary t the liberalisatin f the air transprt with its myriad f cmbinatins f Full Service airlines (FSC), Lw Cst Cmpanies (LCC), Ultra Lw Cst Cmpanies (ULCC), Charters etc. Creativity may smetime g beynd a rule r a prescriptin and it shuld nt be penalised r be under a threat f being penalised. It is bvius that if there are exaggeratins, cmpetitrs will be the first nes t flag them and then the current plicies and prcedures shuld be sufficient t handle them. All submissins will be cnsidered public dcuments and will be psted n the CTA's website in the fficial language in which they were submitted, alng with the name f the individual r rganizatin that submitted them. We encurage yu t respnd t sme r all f the questins psed in this dcument, and we lk frward t receiving yur suggestins. Respectfully submitted. Richard LOOK, President, Avia Marketing Cnsultants Inc 400-6500 Trans-Canada Highway Pinte Claire. QC. H9R 0A5 CANADA Tel: +1-514-631-2136 - Fax:+1-514-624-1276 - Cell:+1-514-913-2136 email: avia@sympatic.ca - Website: www.aviamarketing.ca Page 28

Yur Input Please submit yur feedback by August 28, 2018 at cnsultatins@tc-cta.gc.ca. If yu wish t submit a vide due t accessibility issues, please send an email t cnsultatins@tc-cta.gc.ca with the subject line "Vide". We will cntact yu t crdinate yur submissin. All submissins will be cnsidered public dcuments and will be psted n the CTA's website in the fficial language in which they were submitted, alng with the name f the individual r rganizatin that submitted them. We encurage yu t respnd t sme r all f the questins psed in this dcument, and we lk frward t receiving yur suggestins. Cnsultatins with stakehlders and the public n the new air passenger prtectin regulatins are ne cmpnent f the CTA's brader Regulatry Mdernizatin Initiative that was launched in May 2016. Page 29