OTTAWA — The Supreme Court of Canada has upheld rules that bolster compensation for air passengers subjected to delays, cancellations and damaged luggage on international flights. In a victory for air travellers across the country, the country’s highest court unanimously dismissed an appeal by a group of airlines that challenged Canada’s passenger rights charter on Friday. Air Canada, Porter Airlines Inc.
and 16 other appellants had argued that the Air Passenger Protection Regulations launched in 2019 violate global standards and should be rendered invalid for trips into and out of the country. The legal challenge, which kicked off that year, said that by imposing heftier compensation requirements for flight cancellations or lost baggage on trips abroad, the regulations exceeded the Canadian Transportation Agency’s authority and breach international rules known as the Montreal Convention. In December, the Federal Court of Appeal dismissed the airlines’ case, with the exception of one regulation that applies to the temporary loss of baggage.
The Canadian Transportation Agency and attorney general argued there is no clash between passenger protections and the Montreal Convention, a multilateral treaty. On Friday, the Supreme Court effectively agreed, stating in a decision written by Justice Malcolm Rowe that the regulations “do not conflict with the Montreal Convention.” Under the federal rules, passengers must be compensated with up to $2,400 if they were denied .