Agency Vows 100% Review
By Dale Smith, www.blacklocks.ca
Federal regulators propose a top-to-bottom review of rules under the Transportation Act. The pledge comes two months after the Canadian Transportation Agency reversed itself on regulations governing licensed airlines.
“Keep a close eye on these people,” said Dr. Gábor Lukács of the advocacy group Air Passenger Rights. “Based on what I’ve seen, I have serious doubts as to whether they are impartial or acting for the benefit of Canadian society at large.”
The Agency yesterday said it would consult airlines, railways and marine shippers for “feedback” on the state of regulations. “We’ll be releasing more information about the timing and logistics,” said spokesperson Martine Maltais. “The Agency would like to get broad input from a wide range of stakeholders and members of the public.”
“We’re seeking to update the regulations we administer to keep pace with changes in business models and user expectations,” Maltais said. “Our consultations will enable us to give advice to Transport Canada.”
Lukács said he had “very serious concerns” about the conduct of the Agency. “I’m troubled by the timing and I’m troubled by the people performing the review,” he said. “It’s not how good the regulations are, it’s how they are being enforced.”
“Currently there is no proper enforcement of the consumer protection aspects of the regulations,” said Lukács. “If passengers scream very loudly and make complaints, there may be some steps taken – but not otherwise. That’s not a healthy situation.”
The Agency in a March 30 decision reversed its longstanding interpretation of the Transportation Act to allow airlines operating as “tour operators” to sell tickets without a federal license under certain conditions. The ruling Decision 100-A-2016 contradicted an earlier 1996 ruling that all companies selling fares to the public must be licensed.
The ruling came in the case of NewLeaf Travel Co. of Winnipeg, a discount carrier that offered low-cost flights on aircraft it had no license to operate. NewLeaf was grounded January 21 after selling tickets for travel aboard planes owned by a third-party licensee, Flair Airlines Ltd. of Kelowna, B.C.
The Agency in its March 30 ruling said that, while NewLeaf was mistaken in advertising itself as an airline per se, “The Agency finds that the most reasonable interpretation of what it means to operate an air service does not capture resellers as long as they do not hold themselves out to the public as an air carrier operating an air service.”
Under the Canada Transportation Act section 57, “no person shall operate an air service unless, in respect of that service, the person holds a license.” Air Canada in a submission to regulators said the reinterpretation of rules “should not be rushed or done in a cursory manner”, and that it may allow firms to bypass 25 percent foreign ownership rules in the licensed air carrier trade.
“An organization cannot, nor should it be permitted to, offer its services as equivalent to being an airline or holding out as such without the same conditions and requirements that are required of all other competitors who are, in fact, licensed airlines,” Air Canada wrote.