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Ottawa plans to outsource air passenger complaints process amid record backlog
The Liberals plan independent adjudicators under new legislation as the Canadian Transportation Agency faces 97,000 unresolved complaints.
On Tuesday, the federal government announced it will outsource the air passenger complaints process to a third party to clear a record 97,000-complaint backlog at the Canadian Transportation Agency, adopting a model used in Europe.
The plan, unveiled in Ottawa's spring economic update, arrives three years after the Liberals announced air passenger rights reforms that have yet to take effect, aiming to simplify the passenger rights charter.
New legislation will introduce an independent adjudicator system to resolve complaints ranging from refunds to accessibility, replacing the current system that struggled to manage massive claim volumes at the agency.
Consumer rights advocates expressed skepticism regarding the outsourcing and legislative changes, citing potential trade-offs between speed and protection while noting frustration with the existing framework that has left travellers waiting for resolution.
Earlier this month, Air Canada launched a pilot project using an external arbitrator to resolve compensation claims, signaling a broader industry shift toward third-party dispute resolution that predates the government's announcement.