Professional Documents
Culture Documents
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As a result, the Conservatives are outnumbered by other parties4 and find themselves supporting initiatives that they might
not support in a majority government. 5 In this context, it is not
surprising that Bill C-310 was supported in principle by all four
parties when it was debated at second reading on March 5, 2009.6
On May 13, it was sent for consideration to the House of Commons Standing Committee on Transport, Infrastructure and
Communities and there exists therefore the possibility that Bill C310, or legislation very similar to it, will be passed by Canada's
7
current Parliament.
As we will see, the passage of Bill C-310 not only would be
troubling for Canada's airline industry, it could impose a strict
liability regime for other modes of transport as well.
Background
The campaign for passenger rights in Canada was inspired by
disruptive snowstorms in Canada in December 2008,8 in central
Canada during the March reading week of 2008,9 in Eastern and
4
This point was eloquently made on Dec. 1, 2008 when the second-place
Liberals (77 seats) and the fourth-place New Democrats (36 seats) signed
an agreement to form a coalition government with the tacit support of the
third-place Bloc Qu~b~cois (49 seats) and proposed to defeat the government during a vote scheduled for Dec. 8, 2008. Prime Minister Harper
had to ask the Governor General to prorogue Parliament and upon granting the request, she made the 1st session of the Canada's 40th Parliament
the shortest on record at just 16 days. (It lasted from Nov. 18, 2008 to
Dec. 4, 2008).
The Government's support of Motion M-465 is a case in point. See infra
note 19 and accompanying text.
See http://www2. parl. gc. ca/HousePublications/Publication. aspx? Pub =
Hansard&Doc=24&Language =E&Mode= 1&Parl=40&Ses=2#SOB-26422
07 (follow "debate" hyperlink).
It was passed by a vote of 139 in favor and 131 opposed, at 18:00 on May
13, 2009. The Conservative government members voted against it, but
they were outnumbered by the members of the three opposition parties.
The most severe and widespread winter weather across Canada in nearly
40 years wreaked havoc with travel coast to coast, causing numerous airport closures and record numbers of flights delays and cancellations. Vancouver airport received 12 inches of snow and ran out of de-icing fluid.
On Dec. 23, 2008 Air Canada flight 156 from YVR to YYZ was delayed
by roughly 12 hours.
Vacation Plan Whiteout; After Storm Leaves Thousands Stranded at Pearson, Travellers Are Told They Could be Stuck for Days, THE TORONTO
STAR, Mar. 10, 2008, at A06. See also A Stroll on the Beach? Only in
their Dreams; Flights Cancelled. Air Canada Says Backlog Could Delay
Travel until Tomorrow, MONTREAL GAZETTE, Mar. 10, 2008, at A3; Fli-
2009]
35
Atlantic Canada during Christmas 2007,10 and in Toronto on December 24, 2004.11
In each of the above cases, snowstorms happened during peak
travel times, when airplane loads are at their highest and airlines
are already running extra flights to meet demand. 12 In such a
situation, the ability of an airline to fly the passenger to his/her
final destination within a reasonable timeframe may be extremely
limited. 13
The campaign began in earnest in January 2008, when two
Mayors from Newfoundland and Labrador, Conception Bay
South Mayor Woodrow French and Labrador City Mayor Graham Letto, called for a "bill of rights similar to ones used in New
York State and in the European Union. ' 14 At the time, neither
Mayor could have been aware that the U.S. Circuit Court of Appeals for the Second Circuit was about to strike down the New
York bill. 15
In any event, the Mayors' concerns were taken up by the Hon.
Gerry Byrne, (Liberal) Member of Parliament for Humber-St.
Barbe-Baie Verte, Newfoundland and Labrador, and he proposed Motion M-465 an "Airline passenger bill of rights" on
March 3, 2008. Motion M-465 called upon the government to "to
bring forward an airline passenger bill of rights similar in scope
ers' Bill of Rights is a Timely Idea, MONTREAL
GAZETTE, Mar.
12, 2008,
at A4.
10
12
13
John's), Jan.
14
15
TELEGRAM (St.
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[Vol. 9:1
18
19
See http://www.gerrybyrne.ca/pdf/passenger/The%20Motion.pdf.
Bill C-11, "An Act to amend the Canada Transportation Act and the Railway Safety Act and to make consequential amendments to other Acts,"
see discussion infra.
For the text of the debate, see http://www2.parl.gc.ca/HousePublications/
Publication.aspx?Language=E&Mode= 1&Parl=39&Ses=2&Docld=3547
501#Int-2510697.
The fact a roll-call vote was requested by the Motion's proponent may
have influenced the government's position. See http://www2.parl.gc.ca/
HousePublications/Publication.aspx?Language=E&Mode= 1&Parl=39&
Ses=2&DocId=3574029#T 1035.
2009]
37
a motion calling on itself to "engage in a study of present legislation and regulation that could possibly be used to protect air
travel consumers and report the study to the House of Commons"
in order to advance the cause of an airline passenger bill of
2
rights. o
Parliament adjourned for its annual summer recess on Friday,
June 20, and was set to return on Monday September 15.21 During the summer, the Hon. Lawrence Cannon22 caused consultations to be held with Canada's major airlines and caused to be
drafted, "Flight Rights Canada," which included a "Code of Conduct for Canada's Airlines. '23 This document was based on the
airlines' tariffs and practices and included an effort to promote an
24
increased awareness of existing air passenger rights in Canada.
Minister Cannon launched Flight Rights Canada on September 5,
2008.25
The Code of Conduct was criticized by Motion M-465 proponent, the Hon. Gerry Byrne, who continued to call for "legally
binding" provisions, oblivious to the fact that in Canada airline
tariffs are legally enforceable and are the jurisdiction of the Canadian Transportation Agency. Similarly, Brian Masse, the NDP
transportation critic, said the Code of Conduct would not change
how the airlines did business because it was not legislation and
26
could not be enforced to give consumers any type of assistance.
In fact, 67(1) of the Canada Transportation Act, S.C. 1996 C10, requires Canada's airlines to make their tariffs available for
inspection by the public. In 2007, a new 67(1)(a.1) was added by
Clause 20 of "An Act to amend the Canada TransportationAct
and the Railway Safety Act and to make consequential amend20
21
22
23
24
25
26
See http://www2.parl.gc.ca/HousePublications/Publication.aspx?Docld=
3583243&Language=E&Mode= 1&Parl=39&Ses=2.
In fact the House was dissolved by Royal Proclamation on Sept. 7, 2008
when Canada's Governor General, on the request of the Prime Minister,
called for a federal election to be held on Oct. 14, 2008.
He was then Canada's Minister of Transport, Infrastructure and
Communities.
See Code of Conduct for Canada's airlines, available at http://www.tc.gc.
ca/mediaroom/releases/nat/2008/08-h207e.htm#bg2.
The author of this paper was the initiator of the "Code of Conduct for
Canada's Airlines."
See http://www.tc.gc.calflightrights/menu.htm.
See http://www.ctv.ca/servlet/ArticleNews/story/CTVNews/20080905/
passenger-rights_080905?s name=&noads=.
38
[Vol. 9:1
ments to other Acts, S.C. 2007, c. 19.27 The new section requires
Canada's airlines to post their tariffs on their websites. On February 9, 2009, this requirement was extended to international air28
lines serving Canada.
Sections 67.1 and 67.2 of the Canada Transportation Act give
the Canadian Transportation Agency the power to amend domestic tariffs and order airlines to pay compensation to passengers if
tariffs are not respected or are found by the Agency to be unfair.
Sections 111 to 113.1 of the Air TransportationRegulations (SOR/
88-58) give the Agency similar powers with respect to trans-border and international tariffs.
Flight Rights Canada's Code of Conduct contains a clause in
which the airlines promise to let passengers off an aircraft if a
29
tarmac delay exceeds 90 minutes and circumstances permit.
Unfortunately, on December 23, 2008, passengers aboard Air Canada flight 156 from Vancouver to Toronto experienced a pretakeoff delay of over nine hours. 30 The delay easily exceeded the
90-minute limit in Clause 3(c) of the Code of Conduct. This event
prompted the Consumers Association of Canada to call for "new
31
rules to better protect airline travelers.'
Bill C-310
In the backdrop of misinformation, political opportunism, and
airline passenger grievances with Air Canada, Bill C-3 10 was debated for the first time in Canada's Parliament on March 5,
27
The amending act is also referred to as Bill C-11 of the 1st session of
Canada's 39th Parliament. See the Royal Assent version, available at
http://www2.parl.gc.ca/HousePublications/Publication.aspx?Language =E
&Parl=39&Ses= I&Mode= 1&Pub=Bill&Doc=C= 11_4.
28
Regulations Amending the Air Transportation Regulations and the Canadian Transportation Agency Designated Provisions Regulations, C. Gaz.
Part II, Vol. 143, SOR/2009-28, Feb. 18, 2009, at 214-22. The new regula-
29
30
31
Home. In fact the total delay was 11.7 hours of which 9.9 hours were
prior to takeoff.
2009]
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33
34
35
36
37
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[Vol. 9:1
Transportation Act, and does not embrace the core definition that
gives that Act its enforcement power. Further, the definition of
"air carrier," which makes sense in the context of the Air Transport Regulations, loses its meaning outside that context because it
does not limit itself to "air service." Thus, while Bill C-310 could
potentially apply to any mode of transport, its enforceability is
38
less than certain.
Definitions
Section 55 of the Canada Transportation Act defines the term
"licensee" and it is with the "licensee" that the Canadian Transportation Agency has its relationship. It is through the issuance
of the domestic or international license to the "licensee" that the
Agency has the power to require tariffs, investigate the terms of
tariffs, modify tariffs and require the "licensee" to take action as a
result of Agency decisions. 39 In fact, the Canadian Transportation Agency has very little power over an "air carrier" as its January 28, 2009 warning to Go Travel indicates. 40 In that case a
travel agency had chartered a European airline to fly between
Canada and European points for which the foreign carrier did
not have a license.41 In its warning, the Canadian Transportation
Agency reminded Go Travel that 59 of the Canadian Transportation Act, requires a person to have a license if that person
38
39
40
41
2009]
41
of "reservation"
in
Bill
C-310
is
also
It reads: "'reservation' means a ticket or other proof that indicates that a seat on a flight has been reserved for a particular
passenger by the air carrier. '45 This definition borrows heavily
from the definition of "reservation" used in Europe's EC 261/
2004.46 Unfortunately the definition, especially in Canada, overlooks the fact that the ticket 47 is meant to be the principal documentary proof of the contract of carriage between the passenger
and the airline and indicates the price paid, the points of departure and destination, and the names of the passenger and the air42
43
44
45
46
47
42
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49
50
51
52
53
2009]
43
Scope
The same problems that plague the definitions also affect the
scope of Bill C-310. Bill C-310's scope is clearly inspired by Article 3(1) of EC 261/2004 but it does not follow the latter's elegant
form. EC 261/2004 applies to "to passengers departing from an
airport located in the territory of a Member State to which the
Treaty applies ' 5 6 and "to passengers departing from an airport located in a third country to an airport situated in the territory of a
Member State to which the Treaty applies ...if the operating air
carrier of the flight concerned is a Community carrier. '5 7 In simple terms, EC 261/2004 applies to round-trip travel on EU carriers and to flights departing EU airports on any airline.
Bill C-310, by contrast, would apply to "to all operations of
Canadian air carriers and to operations of all air carriers that
take place in Canada. 5'1 Bill C-310 does not define "operations"
but it has the potential to be much broader than may be intended.
For example, Statistics Canada's study of "Air Carrier Operations
in Canada" covers everything from the balance sheet to the num54
55
56
57
58
44
[Vol. 9:1
59
60
61
62
63
See http://www.statcan.gc.ca/cgi-bin/imdb/p2SV.pl?Function=getSurvey
&SDDS=2712&lang=en&db=imdb&adm=8&dis=2.
On Sept. 11, 2001, 53 intercontinental jets landed at Gander, Stephenville,
and Goose Bay, none of which receive scheduled trans-Atlantic traffic.
Another 78 intercontinental jets landed at Halifax, Moncton, and St.
John's, the biggest of which has only one year-round daily intercontinental flight. The 131 aircraft sent to these six airports represented 54 percent of all diverted flights to Canada and many of their passengers had to
wait on-board for several hours in order to be cleared by Canadian Customs officers. See http://www.navcanada.ca/NavCanada.asp?Language=
en&Content=ContentDefinitionFiles%5CNewsroom%5CBackgrounders
%5C91 lcrisis.xml.
The United States' Secure Flight Final Rule, 73 Fed. Reg. 64017, (Oct. 28,
2008), adds a new 1560.3 to 49 U.S.C, to require all airlines to submit to
the Transportation Security Administration, the full name, gender, and
date of birth of all persons on board aircraft over-flying the U.S. This
would suggest that there are circumstances under which, notwithstanding
the Convention on Offences and Certain other Acts Committed on Board
Aircraft, Sept. 14, 1963, 704 U.N.T.S. 219, [hereinafter Tokyo Convention], there may be situations where authorities have jurisdiction over activities on board over-flying aircraft.
See Bill C-310, supra note 3, 3(2).
Schedule VI of the Carriage by Air Act, R.S.C, 1985, c. C-26, implements
in Canadian law the Montreal Convention. The nature and extent of the
conflict will be discussed infra.
2009]
45
Cancellation
Section 4 of Bill C-310 deals with flight cancellations and is
clearly influenced by Article 5 of EC 261/2004. At first blush, 4
would largely be a re-statement of the existing tariff terms of Canada's major carriers. If a Canadian airline cancels a flight the
airline will undertake to ensure that the passenger is rerouted or
transported to his/her ultimate destination, as per the contract of
64
carriage, within a reasonable period of time and at no extra cost.
If this cannot be done, the passenger is offered credit for a future
flight 65 or a full refund. 66 Further, given that Canada's major
airlines offer multiple routings 67 and multiple daily flights on
most routes, Canada's carriers are generally able to get the passenger to his/her destination within a reasonable 6 8 amount of
time. 69
Section 4(1)(c)(i) of Bill C-310 mirrors Article 5(1)(c)(i) of EC
261/2004 in exonerating the carrier if it informed the passenger of
the cancellation two weeks before the departure date. 70 Both Bill
C-3 10 and EC 261/2004 require that the airline prove that they
64
65
Para. 3.4(a) of WestJet's Local Domestic Tariff (effective July 10, 2008).
66
Rule 260AC (A)(1) and (2) of Air Canada's Tariff, supra note 64, and Paragraph 3.4(b) of WestJet's Local Domestic Tariff, supra note 65.
If Air Canada cancels a Quebec City-Toronto flight, it can offer passengers (even those destined to points west and/or south of Toronto) connections via Montreal or Ottawa. Often, these connections are as fast as or
faster than the original itinerary. Obviously, if weather cancels all outbound flights at an airport this would limit the airline's ability to offer
connecting flights within a reasonable time.
In CTA Decision 171-C-A-2007 of Apr. 11, 2007, Robert Primeau v. Air
Canada, the Canadian Ttansportation Agency held that Rule 240 AC of
Air Canada'sTariff, supra note 64, was reasonable in that it requires the
airline to deliver the passenger to his/her destination within two hours of
the scheduled time. In that case, an Air Canada flight had made a lastminute detour to pick up passengers from a grounded sister aircraft, and
the passenger had missed his original connection. Air Canada had flown
the passenger on the next connecting flight, arriving at the stated destination within two hours of the scheduled time, but the passenger missed a
ground connection.
Obviously, if weather forces the cancellation of multiple flights at a peak
travel time, the airline's ability to reroute a passenger quickly may be
limited. See supra note 12.
See Bill C-310, supra note 3, 4(1)(c)(i). See also art. 5(1)(c)(i) of Regulation (EC) No. 261/2004, supra note 1.
67
68
69
70
46
[Vol. 9:1
72
73
74
75
76
77
See Bill C-310, supra note 3, 4(4) & Regulation (EC) No. 261/2004, supra
note 1, art. 5(4).
See Bill C-310, supra note 3, 4(1)(c)(iii). See also Regulation (EC) No.
261/2004, supra note 1, art. 5(3). The Europeans accept as "extraordinary
circumstances" "political instability, meteorological conditions incompatible with the operation of the flight, security, unexpected flight safety
shortcomings and strikes," as well as "delays to flights by an aircraft resulting from an air traffic management decision earlier in the day." See
Regulation (EC) No. 261/2004, supra note 1, recitals 14-15.
See Case C-396/06, Eivind F. Kramme v. SAS Scandinavian Airlines
Danmark AIS, ECJ Advocate General, 27 Sept. 2007. Canada is one of
the world leaders in the implementation of ICAO's Safety Management
Systems, a proactive approach that emphasizes prevention, through
hazards identification and risk control and mitigation measures, before
events that affect safety occur. Thus, by 2010, the bar will be raised as to
what kinds of mechanical breakdowns constitute, "[unavoidable] extraordinary circumstances." See http://www.tc.gc.ca/CivilAviation/SMS/
menu.htm; http://www.icao.int/anb/safetymanagement/.
See Bill C-310, supra note 3, 4(2).
The amounts are determined according to a formula laid out in 9 of Bill
C-310, supra note 3. Section 9 will be discussed infra.
See Bill C-310, supra note 3, 4(1)(c)(ii).
Section 4(1)(c)(ii) of Bill C-3 10 would not apply during "[unavoidable] extraordinary circumstances," as per 4(1)(c)(iii) of Bill C-310, supra note 3.
2009]
47
79
80
81
On major routes, Air Canada has very frequent service. For example, in
Feb. 2009 (an off-peak travel period), Air Canada offered AC1, a B777300, and AC25, a B767-300, from Toronto to Vancouver at 9:00 and 9:30,
respectively, daily. From Toronto to Montreal, Air Canada offered flights
every 30 minutes from 6:30 a.m. to 9:00 a.m. See "Star Alliance Timetable, February 1st to April 19th, 2009," Star Alliance, 2009. Depending on
load factors and available aircraft, it might make sense to 'consolidate'
two flights into one. In such a situation, some of the passengers would be
delayed by roughly 30 minutes and others would arrive at the original
time.
See Regulation (EC) No. 261/2004, supra note 1, art. 5(1)(c)(iii). This standard applies if the passenger is given less than seven days' notice. If more
than seven days' notice is given, art. 5(1)(c)(ii) allows the departure and
arrival times to be two hours earlier and four hours later, respectively,
than the originally scheduled times.
See Communication from the Commission to the European Parliament
and the Council pursuant to Article 17 of Regulation [EC] 261/2004 on the
operation and the results of this Regulation establishing common rules on
compensation and assistance to passengers in the event of denied boarding
and of cancellation or long delay of flights, Commission of the European
Communities, Apr. 4, 2007.
In the summer of 2009, there were six points in easyJet's network that did
not receive daily service: Bodrum, Turkey; Dalaman, Turkey; Hurghada,
Egypt; Larnaca, Cyprus; Santorini, Greece; and Sharm El Sheikh, Egypt.
48
[Vol. 9:1
way of example, Ryanair serves its 862 mile route between BaselMulhouse and Stockholm, twice weekly82 and offers round-trip
fares of $103.97.83 In such a case, if a flight is cancelled, refunding the passenger's fare does not usually provide sufficient
84
funds to purchase a last-minute ticket on another carrier.
The problems associated with European low-cost carriers do
not occur frequently in Canada because most, if not all, of Canada's domestic carriers serve all of their destinations daily8 5 and
provide daily nonstop or connecting flights between most of the
major cities on their route network. 8 6 Given the relative ease of
rerouting the Canadian passenger, 87 there should be little if any
need for compensation, but where the provisions of EC 261/2004
would be satisfied, Bill C-3 10 would demand more.
Essentially EC 261/2004 requires the airline to reroute the passenger of the cancelled flight to his/her final destination within a
specified time period. 88 If this cannot be done, the amount of the
compensation is intended to facilitate the purchase of a ticket on
another carrier. 89
82
83
84
85
86
87
88
89
2009]
49
Quite simply the impact on a passenger in Canada of a cancelled flight is on average a fraction of the impact of the same
event on a European passenger and thus there are relatively few
complaints against Canada's airlines. 90 It is therefore quite surprising that Bill C-3 10 would require "reimbursement or re-routing"91 as well as "compensation '9 2 for any last-minute flight
cancellation that is not due to "[unavoidable] extraordinary circumstances" unless the passenger accepts the proposed rerouting
in writing.
It seems thus that one of the aims of Bill C-3 10 is to limit airlines' scheduling flexibility and punish them for past wrongs, real
or imagined.
Delay
Section 5(1) of Bill C-310 deals with Delay and is clearly influenced by Article 6 of EC 261/2004. An initial read suggests that it
would largely confirm the existing practices of Canada's major
93
airlines as stated in the Code of Conduct for Canada's Airlines.
However, deeper analysis shows that is a poor adaptation of a
European standard to another continent which shares neither
Europe's geography nor climatic conditions. 94 Thus, Article 6(1)
of EC 261/2004 would provide different delay thresholds for a
Montreal-Toronto flight,9 5 a Montreal-Winnipeg flight,9 6 and a
90
anair flight is not possible. Here, the compensation (provided for in art. 8
of Regulation (EC) No. 261/2004, supra note 1, and discussed infra) would
be sufficient to pay for the purchase of a last-minute ticket on another
carrier.
In 2007, the last year for which figures are available, the Canadian Transportation Agency received only 568 complaints against Canadian carriers.
See 2007-2008 Annual Report, Making Transportation Efficient and Accessible for All, Appendix C: Air Travel Complaints, Canadian Transportation Agency, available at http://www.cta-otc.gc.ca/aux-bin.php?auxid=
1020.
91
92
93
94
95
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[Vol. 9:1
2009]
51
lo4
Id.
105
106
107
108
109
403.
110 See CTA Decision No. 208-C-A-2009 of May 13, 2009, In the matter of a
complaint by Gdbor Lukdcs against Air Canada. Here the Agency struck
down an Air Canada tariff that was not in compliance with Article 19 of
111
52
[Vol. 9:1
Tarmac Rights
Section 6(1) of Bill C-310 deals with "Tarmac Rights" or the
rights of passengers while on board an aircraft prior to takeoff or
after landing. In practical terms, 'tarmac rights' would apply to
the passengers of aircraft whose takeoff is substantially delayed
after boarding, or to passengers who cannot disembark from an
aircraft for a substantial period of time after the aircraft has
landed.
In Canada this campaign is largely motivated by the occurrences on two Cubana Airlines flights diverted to Ottawa, where
300 passengers were kept on the planes for 12 hours.112 However,
it must be understood that unlike taxi drivers, airlines have no
interest in keeping passengers onboard one second more than is
necessary.113
112
113
114
115
(CCH) 16,552 (N.D. Tex. Jul. 2, 2002), Cho v. Korean Air Lines Co., 28
Av. Cas. (CCH) 15,502 (C.D. Cal. Jun. 1, 2001).
Flights 170 and 172 of Cubana de Aviaci6n were diverted to Ottawa on
Mar. 11, 2008 during one of the worst snowstorms on record. At the time,
Ottawa was in the middle of receiving 52 cm of snow, there was thunder
and lightning in the area, and nearly 1,000 flights were cancelled in Montreal, Ottawa, and Toronto, as well as Cleveland and Columbus, Ohio.
The flights arrived at roughly 17:30 and there were no international gates
available for Customs clearance. Passengers were held on the aircraft for
over 12 hours until one passenger called the RCMP on his cell phone.
Customs clearance requirements, a rumored landing fee dispute between
the Ottawa Airport authority and Cubana de Aviaci6n and airport staff
who missed work because of the storm all played roles in the extraordinary and most unusual delay. See Fliers' Bill of Rights Is a Timely Idea,
MONTREAL GAZETTE, Mar. 12, 2008, at A4.
By contrast, Amtrak offers "early-boarding" and a pre-departure "Welcome Aboard reception," with "complimentary snacks and beverages in
the Dining car" to selected passengers on selected trains. See http://www.
amtrak.com/timetable/mayO9/P48.pdf.
Herb Kelleher, president and CEO of Southwest Airlines, quoted in Outlaw Flyboy CEOs: Two Texas Mavericks Rant About the Wreckage of the
U.S. Aviation Industry-and Reveal How They've Managed to Keep Their
Companies Above the Miserable Average, FORTUNE,Nov. 13, 2000, available at http://money.cnn.com/magazines/fortune/fortunearchive/2000/1 1/
13/291563/index.htm.
"Once an aircraft reaches its intended destination, it is unloaded and
loaded in 20 minutes," said Herb Kelleher, quoted in CNN MONEY, Apr.
30, 1998, available at http://money.cnn.tv/1998/04/30/travelcenter/biz
travel/.
2009]
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117
118
119
120
121
54
[Vol. 9:1
122
123
124
124
and that only the federal government had the authority to enact such
legislation.
See Bill C-310, supra note 3, 6(1)(a) to (c).
Id., 6(1).
2009]
55
25
This right does not exist in any bill that has been passed
26
the U.S. Bills would specify a three-hour timeframe, this only applies to the departure airport and the scheduled destination
airport.
This limitation exists for a very important reason; U.S. carriers
are presumed to have planned the departure and arrival of their
aircraft at the airports they serve but not at destinations that are
not scheduled. 27 Most U.S. delays happen as a result of predictable air traffic congestion or gate allocation problems at hub airports and thus the U.S. National Air Traffic Controllers
Association hosts a website showing pre-takeoff delays and arrival delays. 2 8 Similarly the U.S. Bureau of Transportation Statistics 1 29 has issued a report showing how taxiing onto and off the
128
129
130
May 2008, at 4. The average taxi-out time at Newark was 29.6 minutes in
2007; taxi-in time for the same period was 9.5 minutes. In fact, delays in
the N.Y. area are so severe that Air Canada's website routinely notifies
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The Bureau of Transportation Statistics' analysis of tarmac delays has helped frame the U.S. debate on tarmac rights because in
America, a proper understanding of the magnitude of a problem
is a necessary pre-condition to proposing a solution. Based on the
Bureau's research, the U.S. Department of Transportation tabled
a Notice of Proposed Rulemaking, "Enhancing Airline Passenger
Protections. '' 131 It will "require air carriers to adopt contingency
plans for lengthy tarmac delays and to incorporate these plans in
their contracts of carriage,' 132 and "declare the operation of flights
that remain chronically delayed to be an unfair and deceptive
1 33
practice and an unfair method of competition.'
The driving philosophy behind the U.S. approach is that the
root cause of tarmac delays is airline over-scheduling and that if
airlines are forced to adopt tarmac delay plans and show true ontime performance, they will schedule flights to arrive when gates
are available and make sure that they are punctual when using
slots at Slot Controlled airports. 134 The theory is that if airlines
plan to use airport infrastructure efficiently, tarmac delays can be
virtually eliminated.
The tarmac delay problem that plagues U.S. airports does not
appear to be as serious in Europe, as it not covered in EC 261/
2004. If tarmac delay is not a concern in London, Paris, or
131
132
133
134
N.Y.-destined passengers, "[p]lease note flights to/from New York, LaGuardia are delayed at times by Air Traffic Controllers due to traffic congestion or bad weather. Please allow extra time to reach your
destination." See http://www.aircanada.com/en/home.html.
Enhancing Airline Passenger Protections, 73 Fed. Reg. 74,586 (proposed
Dec. 8, 2008) (to be codified at 14 C.F.R. pts. 234, 259, & 399).
The Proposed 14 CFR 259.4(b)(1) will require a statement of "the maximum amount of time that the air carrier will permit the aircraft to remain
on the tarmac before proceeding to a gate and allowing passengers to
deplane."
The Proposed 14 CFR 234.1 l(b) would require the airline to disclose the
on-time performance of flights and indicated "the percentage of arrivals
that were more than 30 minutes late." It calls for "special highlighting if
the flight was late more than 50 percent of the time" and the disclosure of
"the percentage of flight cancellations." Already the websites of U.S. airlines show the on-time percentage beside flight numbers.
For example, on Oct. 19, 2007, New York's JFK Airport set a cap of 80 air
traffic movements (takeoffs and landings) per hour from 6:00 to 21:59,
with the exception of 81/hour from 15:00 to 19:59, in order to limit traffic
for the summer of 2008. Without the limits, the airport would have suffered from chronic delays. See FAA, NOTICE 4910-13, NOTICE OF AIRPORT LEVEL DESIGNATION FOR JOHN F. KENNEDY INTERNATIONAL
AIRPORT FOR THE SUMMER 2008 SCHEDULING SEASON (2008).
2009]
57
Frankfurt, it should not be a worry in Winnipeg, Ottawa, or Halifax, either. In terms of the domestic operations of Canadian carriers, it is hard to imagine how 6 of Bill C-310 is necessary.
Tarmac delays are rare occurrences at Canadian airports and occur principally for one of three reasons:
1) Weather at the departure or arrival airport affects the
air carrier's ability to fly safely and the Captain, usually on
the advice of Air Traffic Control, elects to delay the flight.
2) U.S.-bound aircraft are subject to a "ground-delay"
135
before departing from the Canadian airport.
3) Customs Officials do not allow passengers to disem136
bark from a flight arriving from outside Canada.
Thus, not only is 6(2) of Bill C-310 a solution to a problem
that doesn't really exist, it would actually do considerable damage to Canada's airline industry by making air carriers legally
responsible for events over which they have no control. It would
require an air carrier to pay a passenger $500 for each hour in
which an aircraft on the ground did not provide "adequate food
and drinking water and other refreshments"' 3 7 or give the passenger "an opportunity to disembark from the aircraft if it is
[practicable]. 138
Thus if an Air Canada flight from Newark to Toronto in January had to wait to accommodate a late arriving passenger with
reduced mobility 139 and then had to be de-iced 4 and finally had
135
136
137
138
139
140
The FAA's "Ground Delay[s] are implemented to "control air traffic volume to airports where the projected traffic demand is expected to exceed
the airport's acceptance rate for a lengthy period of time. The most common reason for a reduction in acceptance rate is adverse weather such as
low ceilings and visibility. Flights that are destined to the affected airport
are issued Expected Departure Clearance Times (EDCT) at their point of
departure. Flights that have been issued EDCTs are not permitted to depart until their Expected Departure Clearance Time. These ECDTs are
calculated in such a way as to meter the rate that traffic arrives at the
affected airport; ensuring that demand is equal to acceptance rate." See
http://www.fly.faa.gov/Products/Glossary-ofTerms/glossary-of-terms.
html.
See infra notes 156-160 and accompanying text.
See Bill C-310, supra note 3, 6(2) and 6(1)(c).
58
[Vol. 9:1
143
144
145
Average taxi-on time was 29.6 minutes in 2007. See supra note 130.
Subsections 605.25(1)(a) and (b) of CanadianAviation Regulations, SOR/
96-433, prohibit the movement of "all persons on the aircraft" during taxiing (actually "movement on the surface") and takeoff or landing, and require them to fasten seatbelts.
See Bill C-310, supra note 3, 6(2).
For security reasons, Canada has had a policy of passenger/baggage reconciliation for nearly 20 years. See http://www.publicsafety.gc.ca/prg/ns/
airs/rep 1-6-eng.aspx.
Such a person returning to Canada would have to proceed through Canadian customs formalities. Quite simply, once a passenger has passed
through U.S. Preclearance, s/he is considered to be on U.S. soil. See
Agreement on Air Transport Preclearance between the Government of
Canada and the Government of the United States of America, 18 Jan.
2001, E103842- CTS 2003 No. 7. See also Customs Act, S.C. 1985, c. 1
(2d Supp.).
2009]
59
148
149
See Bill C-310, supra note 3, 6(2), 6(1)(d), 4(1)(c)(ii) & 9(a). This example presumes a one-hour delay or the cancellation of a short-haul flight.
Air Canada's yield (average passenger revenue) in 2008 was 25.2 cents per
Revenue Passenger Mile.
See Air Canada Annual Report 2008 at 72, available at http://www.air
canada.com/en/about/investor/documents/2008_ar.pdf. Newark-Toronto
is 346 miles. Thus Air Canada's revenue from an average Newark-Toronto passenger would be $87.19.
The 'creeping delay' is one which continues to extend. In almost every
case such delays are caused by a combination of factors making it almost
impossible to accurately predict the end-time.
The author of this paper has been subject to 'creeping delays' on several
occasions. In each case, the author was glad that the flight eventually
departed for the destination.
152
See http://www.cbc.ca/canada/british-columbia/story/2008/12123/bc-airports-stranded-travellers.html.
Track Flight shows that Air Canada flight 156 was due to depart Vancouver at 22:40 on Monday Dec. 22. It actually departed at 8:35 on Tuesday,
Dec. 23, 2008, after a pre-takeoff delay of 9 hours and 55 minutes. It was
scheduled to arrive in Toronto at 6:05 on Tuesday, Dec. 23. It arrived at
17:52 on Tuesday Dec. 23, 11 hours and 47 minutes late. See http://www.
flightstats.com/go/FlightStatus/flightStatusByFlight.do?id= 147469857&
airlineCode=AC&flightNumber= 156.
60
[Vol. 9:1
See http://micro.newswire.ca/release.cgi?rkey=1612244396&view=13213-0
&Start=30.
154 In this case, 6(2) of Bill C-3 10 would require $5,000 ($500/hr)for the 10hour pre-takeoff delay. Section 4(1)(c)(iii) would excuse the airline from
153
liability to pay compensation during such weather conditions, and the cost
of the airline's other obligations under subsections 10(1) and 12(1) of Bill
C-3 10 would not be as high as those under subsection 6(2).
155 Obvious routes where legal liabilities exceed revenue opportunities are
Kabul and Baghdad. Neither is served by major commercial carriers.
156
157
158
See http://www.tc.gc.calmediaroom/releases/nat2001/01_hll2e.htm.
In
fact, there were 6,117 passengers on 31 flights operated by eight European
and seven U.S. airlines. Another 484 passengers arrived on charter and
private flights, most of which were associated with U.S. military
operations.
Three aircraft from Italy arrived in Gander: Alitalia and US Airways
flights from Rome, and a Continental flight from Milan. Another arrived
from Budapest. In each case, a nonstop flight from these cities to Gander
is roughly seven hours.
Customs Act, S.C. 1985, c. 1 (2d Supp.) 11(1).
2009]
61
160
161
162
See http://www.tc.gc.calmediaroom/releases/nat2001/O01_hll2e.htm.
St.
John's also received 4,200 passengers on 25 intercontinental flights operated by two Canadian, two European, and five U.S. airlines. In addition,
Stephenville, near Gander, received 1,095 passengers on eight aircraft operated by one European, one Mexican, and three U.S. airlines.
Because Canada's skies were closed, other agents had to drive from St.
John's 15 hours away. It took over 24 hours before CIC could allow the
final passenger to disembark from the last plane. See http://www.gander
airport.com/91 la.htm.
Some 11 flights from Germany, Italy, or Hungary had been in the air at
least 6.5 hours or longer before landing in Gander. In at least one of these
cases, passengers remained on board for 30 hours. Airlines do not provide
enough catering for 30 hours unless they are planning a 30-hour flight.
See http://www.ganderairport.com/911b.htm.
62
[Vol. 9:1
operating air carrier. ' 163 Section 7(1) of Bill C-310 would provide
"compensation" of $500 or more, in addition to "benefits agreed to
by the passenger and the air carrier."' 164 By contrast sub-articles
4(2) and (3) of EC 261/2004 would offer "compensation" only to
passengers who are denied boarding against their will,165 in a
manner similar to the way that 8(2) of Bill C-310 would provide
compensation in cases of involuntary denied boarding. 166
As written, sections 7 and 8 of Bill C-3 10 blur the distinction
between voluntary and involuntary denied boarding, giving both
the volunteer and the obliged passenger a level of compensation
that in most cases vastly exceeds the fare paid. 167 In such a scenario the level of 'voluntary' compensation would be reduced with
a corresponding impact on the number of volunteers.168 Moreover, there is no obligation for passengers to meet the air carrier's
minimum check-in time169 and this requirement is a pre-condition
170
to denied boarding benefits in almost every airline tariff.
The most curious thing about sections 7 and 8 of Bill C-310 is
that they would propose to fix a system that it not broken. In
2008 Air Canada's load factor was 81.4 percent' 71 and WestJet's
163
164
165
166
167
168
169
170
171
2009]
63
was 80.1 percent. 172 This means that on an average day, one in
five seats in Canada's skies is empty. In such as scenario denied
boarding is very uncommon and involuntary denied boarding is
an extremely rare occurrence. At the present time, in situations
where an aircraft is oversold or a smaller aircraft is substituted at
the last minute, it is the practice of Canada's airlines to call for
volunteers to take a later flight. 1 73 Volunteers receive compensation which usually includes credit for future travel as well as on174
ward transport on a later flight.
In the case of involuntary denied boarding, a passenger typically is offered free transport on another flight 175 or a refund of
the fare paid.17 6 In cases where the airline's next flight is not
relatively soon, Air Canada and Air Transat will try to get the
passenger a seat on another airline's flight even if that seat costs
more than the amount the passenger paid. 177 In those rare cases
where the passenger has to wait another day to take the airline's
next flight, WestJet will pay for meals, hotel accommodations,
178
and airport transfers as necessary.
It is worth noting that because the above practices are confirmed in the tariffs of Canada's airlines, these tariffs are currently enforced by the Canadian Transportation Agency. It is
also worth noting that no proposed U.S. legislation would deal
with Denied Boarding; as the problem in that country does not
seem to be serious enough to warrant legislative attention. Indeed, U.S. carriers are being quite creative in their attempt to
172
173
174
175
17.3 (a).
WestJet's Tariff, supra note 65, para. 5.2 b ii (2).
177 Air Canada's Tariff, supra note 64, Rule 245AC (D)(2); Air Transat Tariff,
supra note 170, Rule 17.3 b).
178 WestJet's Tariff, supra note 65, para. 5.2 b iii.
176
64
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2009]
65
miles,186 while there are at least five in Canada.187 There are also
186
66
nearly
85
percent
more
compensation
[Vol. 9:1
in
the
event
of
cancellation. 193
Further, where Article 7(2) of EC 261/2004, allows the airline
to reduce the amount of compensation by 50 percent if the passenger is rerouted to his/her original destination within specific
time periods, 94 Bill C-310 has no such provision, with the result
that the liabilities of Canadian carriers can be 270 percent more
than those of EU carriers under similar circumstances.95
Bill C-310's currency conversion factors combined with the
percentage of Canadian domestic flights that exceed 931 and even
2,172 miles, and the fact that 9 of Bill C-310 does not offer a
reduction of compensation for rerouting passengers has the potential to result in much greater liabilities than article 7 of EC 261/
2004.
Indeed, both Bill C-310 and EC 261/2004 would apply to
flights between Europe and Canada, as shown below:
193
194
195
2009]
67
Airline
Route
Legislative Regime
Air Canada
Air Canada
Lufthansa
Canada-Europe
Europe-Canada
Canada-Europe
Bill C-310196
Bill C-310,197 EC 261/2004198
Bill C-310,199 EC 261/2004200
Lufthansa
Europe-Canada
EC 261/2004201
68
[Vol. 9:1
205
206
207
208
209
210
See Regulation (EC) No. 261/2004, supra note 1, art. 8(1)(b); Bill C-310,
supra note 3, 10(1)(b).
See Regulation (EC) No. 261/2004, supra note 1, art. 8(1)(c); Bill C-310,
supra note 3, 10(1)(c).
See supra notes 64, 65, & 170.
Bill C-310, supra note 3, 10(2), states, "If an air carrier fails to comply
with subsection (1)," compensation will be paid, in addition to
reimbursement.
Bill C-310, supra note 3, 9. See supra notes 180-182 and accompanying
text for a discussion of these amounts.
See Bill C-310, supra note 3, 4(l)(c)(ii).
Id., 10(2).
2009]
69
213
214
215
216
217
218
Fare for travel after Sept. 15, 2009, for bookings made in May 2009.
There are many reasons why a passenger might legitimately not like a
rerouting, including the fact that the passenger might miss an air or
ground connection to a destination not listed on the ticket. See CTA Decision 171-C-A-2007 of Apr. 11, 2007, supra note 68. In that case, the passenger's claim was based on the fact that even though he had arrived at
the destination stated on his ticket within two hours as per the airline's
tariff, he had missed a ground connection to his real final destination.
This is the reimbursement of the $197 fare and $1,000 compensation of
10(2) together with the distance-based compensation of 9(c), both of Bill
C-310, supra note 3.
Art. 7(1)(b) and 8(1)(a) of Regulation (EC) No. 261/2004, supra note 1,
would grant 400 EUR in compensation and a refund of 122 EUR for a
total of 522 EUR, or roughly $850 CAD under similar circumstances.
See Bill C-310, supra note 3, 11; Regulation (EC) No. 261/2004, supra
note 1, art. 8(3).
Both serve Greater Vancouver. They are 38 miles apart.
Both serve Greater Toronto. They are less than 39 miles apart.
Waterloo International Airport serves "the cities of Cambridge, Kitchener
and Waterloo." See http://www.waterlooairport.ca/en/. The London International Airport claims to serve the "region of Southwestern Ontario."
See http://www.londonairport.on.caJnews/WestJetdirecttoOrlandoWinter
2009.pdf.
70
[Vol. 9:1
220
221
222
223
224
225
226
The flights of Porter Airlines, based at Toronto City Centre Airport, are
occasionally diverted to Toronto Pearson, 17.9 km away. Porter considers
such ground transportation to be part of its service to customers.
See Bill C-310, supra note 3, 12(1)(a); Regulation (EC) No. 261/2004,
supra note 1, art. 9(1)(a).
See Bill C-310, supra note 3, 12(1)(b); Regulation (EC) No. 261/2004,
supra note 1, art. 9(l)(b).
See Bill C-310, supra note 3, 12(1)(c); Regulation (EC) No. 261/2004,
supra note 1, art. 9(1)(c).
See Bill C-310, supra note 3, 12(1)(d); Regulation (EC) No. 261/2004,
supra note 1, art. 9(2).
See supra notes 64, 65, & 170. In this author's many trips, anytime an
unscheduled en-route hotel stay was required the airline paid for the hotel
bill and ground transfers between the hotel and the airport.
See http://www.usairways.com/awa/Content/traveltools/specialneeds/ticketingpolicies/altpayment/mco.aspx; http://www.arccorp.com/forms/pp/iah
5_.6.pdf.
Section 12(2) of Bill C-310, supra note 3, states, "If an air carrier fails to
comply with subsection (1), it shall pay compensation to every affected
passenger in the amount of 500 Canadian dollars."
2009]
may be closed 227 and hotels 228 might be full or too far
away.
71
229
228
229
230
231
232
233
234
235
72
[Vol. 9:1
236
237
238
239
240
2009]
73
'24 2
242
243
244
245
246
Art. 9(3) of Regulation (EC) No. 261/2004, supra note 1, reads "In applying this Article, the operating air carrier shall pay particular attention to
the needs of' minor children, etc.
See Bill C-310, supra note 3, 13(1).
247
74
[Vol. 9:1
248
252
See http://www2.canada.com/calgaryherald/news/story.html?id=c
162-09f5-4e00-bb le-Ob2ecfa2998b&k=35162.
374 8
2009]
75
ebral palsy could fly on WestJet, the company paid for an air am25 3
bulance to fly her home.
In this context, 13(2) of Bill C-310 is completely unnecessary
and puts airlines in the awkward position of potentially being
fined, when third-party wheelchair taxi operators refuse to assist
airline passengers with reduced mobility.
Right to be informed
Section 14 of Bill C-310 deals with air fare advertising and reignites an unresolved debate over clauses 27 and 64 of "An Act to
amend the Canada Transportation Act and the Railway Safety
'254
Act and to make consequential amendments to other Acts.
The first reading version of clause 27 of that Act, had read as
follows:
27. The Act is amended by adding the following after section 86:
86.1(1) The [Canadian Transportation Agency]
may, on the recommendation of the Minister, make
regulations respecting advertising in all media, including on the Internet, of prices for air services
within, or originating in, Canada.
During consideration of the Bill, on Tuesday, December 5,
2006, the House of Commons Standing Committee on Transport,
Infrastructure and Communities adopted a motion by Liberal
MP David McGuinty replacing the words "may, on the recommendation of the Minister" with "shall. '255 During the Senate's
consideration of the Bill on May 16, 2007, the Standing Senate
Committee on Transport and Communications adopted a motion
by Liberal Senator Dennis Dawson to give Canada's Cabinet the
256
power to decide when Clause 27 would come into force.
253
254
See http://www.dose.ca/news/story.html?id=Oc5fc9a9-931f-4aec-b95d-87a
e2a7l4eOb. In that case, although Transport Canada was quoted as saying that the harness was not "banned" they would not "approve" it either.
Also referred to as Bill C-11 of the 1st session of Canada's 39th Parlia-
256
For the debate, see http://www2.parl.gc.ca/HousePublications/Publication.aspx?Docld=2571452&Language=E&Mode= l&Parl=39&Ses= l#Int1819009. It lasted about 35 minutes from 16:35 to 17:10.
The actual amendment was the insertion of Clause 64 of the Bill, which
reads "Section 27 comes into force on a day to be fixed by order of the
Governor in Council." See http://www.parl.gc.ca/39/1/parlbus/commbus/
76
[Vol. 9:1
257
258
259
260
261
262
263
2009]
77
264
265
266
267
268
tised price. That price does not include an optional Loss Damage Waiver
of $19.99/day or an "under age fee" of $11.99/day. If both of these options
are taken the final cost increases to $64.01, nearly five times the $12.99
advertised price.
In this case, Air Canada flight 700 and American Airlines 4841 both offer
fares as low as $95.00. AC flight 700 departs at 6:20 and arrives at 7:49.
AA 4841 departs at 6:30 and arrives at 8:10.
This is usually the airline, but it could be a travel agent in certain
circumstances.
The Greater Toronto Airports Authority administers Toronto Pearson International Airport on behalf of Transport Canada. See http://www.tc.gc.
ca/programs/airports/index.htm. The $20 CAD fee rose to $25 CAD on
June 1, 2009. See also http://www.newswire.ca/en/releases/archive/February2009/13/c8394.html.
Air Travellers Security Charge Act, S.C. 2002, c. 9, 5.
21 U.S.C. 136a(a)(1)(A) allows the U.S. Secretary of Agriculture to "prescribe and collect fees sufficient to cover the cost of providing agricultural
quarantine and inspection services in connection with the arrival at a port
in the customs territory of the United States, or the preclearance or preinspection at a site outside the customs territory of the United States, of an
international . . . commercial aircraft." Agricultural Inspection and AQI
269
270
271
User Fees Along the U.S./Canada Border, 71 Fed. Reg. 50320 (Interim
Final Rule and Request for Comments Aug. 25, 2006) (codified at 7 C.F.R.
354, 354.3(f)) sets a $5.00 "fee for inspection of international passengers"
and requires the issuer of the ticket to collect the fee and remit it the U.S.
Department of Agriculture.
8 U.S.C. 1356(d) and (f) require the issuer of a ticket to the United
States to collect $7.00 for "immigration inspection of each passenger" and
remit that money to the U.S. Treasury.
I.R.C. 4261(c)(1).
The rate is currently five percent. See http://www.gst.gc.ca/.
78
[Vol. 9:1
included foreign and domestic taxes, 272 and could possibly result
in cases where airlines simply refuse to collect certain amounts on
7
behalf of third parties.2 3
On the other hand, fees that are paid by the airlines on other
than a 'per-passenger' basis are not 'flow-through' and an argument can be made for including them in the advertised fare. This
would include surcharges for NAV Canada, 279 fuel, 280 and insur272
273
274
275
276
277
278
279
2009]
79
ance. 28 l However, given that landing fees are often based on aircraft weight, and that there is a relationship between aircraft
weight and passenger size, there is an argument to be made for
including these fees in the list of taxes and fees that airlines must
2 82
pay on passengers' behalf.
Section 14(2) of Bill C-3 10 would impose an "an administrative
monetary penalty in the amount of 10 000 Canadian dollars for
every day '283 that an air carrier publishes or broadcasts a price
for an air service that fails to include in the advertised price "all
fees charges and taxes that are collected by the carrier on behalf
' 284
of another person in respect of the service."
Section 14(2) of Bill C-310 would impose a double standard in
the marketing of airline tickets in Canada. Thus, while it would
apply to Air Canada, Porter, and WestJet, it would not apply to
Transat A.T. Inc., because Air Transat's parent is not an airline
but "an international company that owns an air carrier, provides
destination services, is active in the accommodation industry and
28o
281
282
283
284
80
286
[Vol. 9:1
'285
Quite simply,
287
288
289
290
291
292
See http://www.transat.com/en/about/about.aspx.
Transat Tours Canada is a tour operator based in Montreal and is therefore bound by 224(c) of Quebec's Consumer Protection Act, R.S.Q., ch.
P-40. 1, which prohibits a merchant from charging "for goods or services, a
higher price than that advertised."
Air Transat does not directly sell any of its services. Virtually all of its
seats are distributed through Transat Tours Canada and its associates.
See http://www.transat.com/en/about/outgoing.aspx.
Already, Air Transat has Transat A.T. Inc. and Air Canada has ACE Aviation Holdings Inc. See http://www.aceaviation.com/en/home.html.
Only British Columbia, Ontario, and Quebec have "price advertising"
provisions in laws applying to the promotion of goods and services in the
province. A tour operator based in any other province would not be
bound by "price advertising" legislation.
Canada's federal law cannot regulate the distribution of goods and services unless the distributor is an institution such a bank or telecommunications company, which is normally subject to federal regulation. See
Constitution Act, 1867, 92(16).
Air Canada has lowered distribution costs by $400 million per year and its
website features prominently in this strategy. See Montie Brewer, President and CEO, Air Canada, and Michael Rousseau, Executive Vice President and CFO, Air Canada, Presentation at the CIBC World Markets 7th
Annual Eastern Institutional Investor Conference, Sept. 24, 2008, at 15,
available at http://www.aircanada.com/en/about/investor/documents/sheraton-sep08.pdf.
Many TV and radio stations in Northern Washington and Upstate New
York can be picked up easily in Greater Vancouver and Southern Ontario.
The most extreme example of a potential problem here is KVOS-TV, a
Bellingham, Washington-based TV station that claims to serve the "Pa-
2009]
81
294
295
296
297
298
82
[Vol. 9:1
failed to "to comply with subsection (1). ' ' 299 Given that 16(1) of
Bill C-310 does not define "every reasonable effort" it is not clear
under what circumstance the $100 compensation of 16(2) would
be payable. Further, in cases where the luggage might be in a
different country or time zone than the passenger, the standard of
"reasonable effort" might be different than in cases where the pas3o
senger is on the plane.
Section 17(1) of Bill C-3 10 is again inspired by item 1 of the
"Code of Conduct for Canada's Airlines,"' 301 and requires an airline to make public announcements "respecting cancellations, delays and diversions of its flights" over the public address system
and airport television monitors within 10 minutes of becoming
3 2
aware of these events.
Section 17(2) of Bill C-3 10 would require the air carrier to pay
an "administrative monetary penalty of $1000in cases where the
air carrier had failed to "to comply with subsection (1)."3o3
Unfortunately, 17(1) of Bill C-310 does not require "every reasonable effort" but instead mandates a result. This might be understandable if the operation of the airport public address system
and the airport television monitors were always within the airline's control, but Bill C-310 would apply both to foreign air carriers in Canada as well as to Canadian air carriers abroad.
Further, there is the question of the language of the notice; ideally
it should be made in both of Canada's official languages, as well
as (for international flights) the official or major language(s) of the
3 4
destination country. 0
Section 18(1) of Bill C-310 would require air carriers to provide
bilingual signage at check-in to inform passengers of their rights
and reminding affected passengers to ask for a "written notice
2009]
83
setting out the rules for compensation and assistance under the
'30 5
Airline Passengers' Bill of Rights.
Section 18(1) of Bill C-310is inspired by an unfulfilled promise
that Transport Canada made when Minister Cannon launched
Flight Rights on September 5, 2008. At that time, Transport Canada promised, "Flight Rights Canada will make information
available to air travelers in several ways. It will inform Canadi' 30 6
ans of their rights through prominent signage at key airports.
Had Transport Canada kept this promise, 18(1) of Bill C-310
might not have been drafted.
The text of section 18(1) of Bill C-310 is drawn almost entirely
from article 14(1) of EC 261/2004.
Section 18(2) of Bill C-310 would impose an "administrative
monetary penalty of $1000 in cases where the air carrier had
failed to "to comply with subsection (1)." 307 Unfortunately 18(1)
of Bill C-310 does not require "every reasonable effort" but instead mandates a result. It is easy to imagine situations, particularly at rarely served foreign airports where providing such a
notice might be a challenge. Perhaps for this reason, Article 14(1)
of EC 261/2004 does not provide for a penalty for noncompliance.
The Montreal Convention, sections of which may conflict with
this act, has a more practical solution. Article 3(4) of the Montreal Convention requires that a "passenger shall be given written
notice to the effect that where this Convention is applicable it
governs and may limit the liability of carriers in respect of death
or injury and for destruction or loss of, or damage to, baggage,
and for delay. ' 30 8 The subsequent article makes it clear that the
airline's failure to provide the notice does not affect the applica3 9
tion of the Convention.
Rather than requiring an airport sign, 18(1) might require that
the notice be included in the terms and conditions of the ticket.
This would give the passenger earlier notice and reduce the airlines' costs as most tickets now are e-tickets.
305
306
307
308
309
84
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Section 19(1) of Bill C-310 would require an air carrier to "immediately provide" 310 affected passengers with a written notice
that contains the "rules for compensation and assistance, ' ' 311 the
"contact details of the Canadian Transportation Agency, '312 and a
"claim form. '3 13
Section 19(1) of Bill C-310 is based heavily on Article 14(1) of
EC 261/2004, except that the latter does not insist on 'immediate'
service.
Section 19(2) of Bill C-310 requires the air carrier to pay an
affected passenger $200 if it fails "to comply with subsection
(1)."3 14 When combined with the 'immediacy' requirements of
19(1) of Bill C-310, 19(2) of Bill C-310 could have unintended
consequences. In practical terms, it takes time to give a "written
notice" to anyone. In the case of 100 or more passengers in a
waiting lounge, it could easily take 20 minutes to give this notice
to everyone. Do Canada's legislators desire that airline staff
spend that 20 minutes on avoiding paying passengers $200315 or
on re-booking the passenger to their final destination with minimum delay? As written, 19 of Bill C-310 encourages the former
course of action.
Section 20 of Bill C-3 10 requires that the notices "referred to in
subsections 18(1) and 19(1) shall be provided to blind and visually
impaired persons in an appropriate alternative medium. '' 316 It is
based on Article 14(2) of EC 261/2004.
While 20 of Bill C-310 seems to be fair, if the 'strict liability'
provisions of sections 18 and 19 apply to 20, this would impose
additional liabilities on air carriers.
Increasingly, at airports other than at an air carrier's 'hub,'
317
and especially at foreign airports, air carriers use 'handlers
who invariably process passengers from various carriers. At the
same time, more airports are embracing "Common Use Terminal
310
311
312
313
314
315
316
317
20091
85
See http://www.industry.siemens.com/airports/en/solutions/itsolutions_
servicessoftware-systemscommonusefacilitiescute.htm?node= 1168.
319
320
321
322
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Secondly, it would send the consideration of any 'administrative monetary penalty' to an appeal body that focuses almost entirely on the safety issue and medical aspects of pilots' licenses.323
Quite simply, if the "Airline Passengers' Bill of Rights" is to
have meaning, the Canadian Transportation Agency, not the
Transportation Appeal Tribunal of Canada should have jurisdiction over all matter covered by Bill C-310. Further, if the Canadian Transportation Agency does not have jurisdiction over the
matters raised in sections 3-13 of Bill C-310, there is no obvious
reason to provide affected passengers with the "contact details of
the Canadian Transportation Agency," as per 19(1)(b) of Bill C310.
Miscellaneous
Section 22 of Bill C-3 10 requires that any compensation or reimbursement be provided within seven days. 324 There is no similar clause in passed or pending legislation in any other
jurisdiction. As a matter of course, the air carriers will pay
promptly those benefits and compensations that are consistent
with their tariffs as amended. Amounts that air carriers dispute
will probably have to be collected through private right of action,
as the Canadian Transportation Agency's jurisdiction over 'air
carriers' is questionable. 32 5
Section 23 of Bill C-310 would measure applicable distances by
the "great circle method" and takes this idea from Article 7(4) of
EC 261/2004.
Section 24 of Bill C-310 is an attempt to 'inflation-protect' the
amounts of compensation and administrative monetary penalties.
Section 24(1) proposes to update the amounts based on the Consumer Price Index, and uses an approach inspired by election legislation in New Brunswick, 326 Newfoundland, and Labrador. 327
While such an approach may be suitable for determining election
323
324
325
326
327
In announcing the creation of the Transportation Appeal Tribunal of Canada on Sept. 26, 2001, the government said that the TATC "replaces current internal review processes in which enforcement decisions made by
inspectors are subject to review by senior officials." See http://www.tc.gc.
ca/mediaroom/releases/nat/2001/0 1_h 123e.htm.
It makes provision for various payment methods.
See supra notes 43-44 and accompanying text.
See Political Process Financing Act, SNB ch. P-9.3, 77.1(1).
See Election Act, 1991, SNL 1992 ch. E-3.1, 311(1).
2009]
87
spending limits, any adjustment of compensation under Bill C310 should be based on the price of airline stock or perhaps the
increase or decrease of average airline prices over a specific route
or collection of routes.
Section 25 of Bill C-310 states that the Governor in Counci3 28
"may make regulations in respect of any matter referred to in this
Act" 329 unless such regulation would "negate
fect of any of the provisions of this Act. '330
impossible that Canada's Senate would add
ing into force" clause as they have done with
33 1
dealing with passenger rights.
Conclusion
Bill C-310 is a well-meaning Bill, but it has several serious
flaws.
It combines Delay provisions inspired from EC261/2004 with
Tarmac Rights inspired by proposed U.S. legislation. These provisions are potentially incompatible. This is precisely why they
do not co-exist in either current or proposed legislation elsewhere.
Bill C-3 10 requires air carriers to pay administrative monetary
penalties or compensation in twelve situations where no other
proposed or current law would require the same. 332 In two other
provisions, Bill C-310 sets much higher standards 333 and compensation levels up to 270 percent more 33 than any comparable legislation elsewhere. Bill C-310 contains a provision that is not
found elsewhere in Canadian federal law 335 and has sections
which potentially conflict with an international treaty Canada
336
has signed.
330
331
332
328
329
2004, supra note 1. Further, Bill C-310 has no subsection similar to art.
7(1) of EC 261/2004, supra note 1.
334 See supra note 195.
335 See Bill C-310, supra note 3, 24 and 19(1).
336 See supra notes 105-111 and accompanying text.
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