Internal government documents obtained by Go Public suggest that Transport Canada officials, along with successive transport ministers, took steps to delay and potentially undermine the implementation of a plan to require airlines to contribute to Canada’s air passenger complaints system.
These records indicate that Transport Canada, under the guidance of two different transport ministers, consistently interfered with the Canadian Transportation Agency (CTA), which is mandated to operate independently and was instructed by Parliament in 2023 to establish a cost-recovery fee on airlines. However, more than two and a half years later, this fee has yet to be put into effect.
Currently, taxpayers are footing a bill of approximately $30 million annually to handle air passenger complaints, while the backlog of individuals seeking compensation has surpassed 88,000 cases. Passengers who have been denied compensation for issues such as flight delays or lost luggage can lodge complaints with the CTA. Due to the overwhelmed nature of the complaints system, Parliament mandated the agency to charge airlines a fee for cases involving passengers with valid claims.
To investigate the reasons behind the delay in implementing the fee, Go Public utilized an Access to Information request with the CTA spanning from August 1, 2024, to May 20, 2025. The obtained over 2,000 pages of documents revealed various correspondences between the CTA and multiple transport ministers, internal deliberations on addressing government concerns regarding the proposed fee, and feedback from a public consultation process.
Gábor Lukács, founder of Air Passenger Rights, reviewed the documents and highlighted what he perceives as ministerial interference with the CTA’s independent work. Lukács emphasized the need for transparency and adherence to parliamentary directives.
Despite attempts to gather insights from the CTA, the transport minister, and Transport Canada, none agreed to interviews. Transport Canada provided a generic statement about its involvement, sidestepping specific inquiries from Go Public. Former ministers of transport during the period when the CTA was directed to introduce the fee also did not respond to questions.
Following Parliament’s directive in 2023, the CTA proposed a fee of $790 per eligible passenger complaint. Public consultations held in the fall of 2024 garnered 83 written submissions, with consumer groups and the public largely supporting the fee, while airlines and industry representatives voiced opposition, citing concerns about potential abuse and cost-sharing by passengers.
Amid the internal records, a letter from former transport minister Anita Anand to the CTA chair in October 2024 emerged. Anand raised objections to the agency’s move to proceed with public consultation before her assumption of the transport portfolio. She questioned the adequacy of due diligence behind the proposed fee and requested a delay in its implementation until broader regulatory changes were finalized.
Constitutional law expert Pauly Daly criticized Anand’s stance, labeling it as constitutionally inappropriate. Daly emphasized that consultation procedures are the responsibility of the CTA, not the minister or civil servants. Lukács viewed Anand’s request as undermining parliamentary decisions and the agency’s independence.
As of May 2025, a new transport minister, Chrystia Freeland, had taken office. The CTA expressed readiness to proceed with the fee implementation but encountered uncertainties thereafter. Lukács reiterated allegations of deliberate obstruction by Transport Canada and ministers, jeopardizing the fee’s implementation and impeding the CTA’s autonomy.
The ongoing delay in fee implementation, despite Parliament’s directive, remains troubling. Daly emphasized the necessity for the regulatory system to function efficiently, enabling Canadians to exercise their rights to claim compensation from airlines.
Despite lobbying efforts by the airline industry, the fee proposal remains unresolved, with over 88,000 air passenger complaints backlogged at the CTA. Internal forecasts suggest this figure may escalate to over 150,000 by 2028, prolonging the wait for affected Canadians seeking rightful compensation.