Air Canada is currently conducting a trial of a new resolution process to handle passenger complaints more efficiently. The airline is approaching 500 randomly selected passengers with unresolved claims at the Canadian Transport Agency’s dispute process to inquire if they would be willing to transfer their claims to a third-party arbitrator on a voluntary basis.
The primary objective of this pilot initiative is to address customer grievances in a manner that is prompt, effective, and, above all, fair and just, as stated by Air Canada’s chief legal officer, Marc Barbeau. The Canadian Transport Agency is facing a backlog of approximately 95,000 complaints, a significant increase from 42,000 in 2023 when additional funding was allocated to expedite the resolution process. Studies have revealed that the complaint resolution process can extend over two to three years.
Air Canada is funding the pilot program, and it has consulted with Transport Canada and the Canadian Transportation Agency on the program’s structure. The arbitration process for the trial will be managed by a subsidiary of the U.K.-based CDRL Group, a non-profit organization that offers dispute resolution services in the U.K. and Europe, where such processes are more prevalent.
The aim is to explore an approach that has proven successful elsewhere and could yield positive outcomes in Canada, as per Barbeau. According to Air Canada, each case will receive a decision within 90 days of receiving all pertinent information from both the airline and the customer. While the decision will be binding for Air Canada, consumers will retain the option to reject the arbitrator’s decision during the trial and revert to the standard CTA process without losing their place in the queue, as confirmed by the CTA to CBC News via email.
Passenger Andrew Giblon expressed the need for a more effective system, citing his unresolved claim with Air Canada from two months ago. Despite expressing skepticism about the pilot project’s efficacy, especially given negative reviews of the arbitrator on Trustpilot, Giblon highlighted the importance of a neutral body accepted by both parties for the process to be successful.
Ian Jack from the Canadian Automobile Association emphasized the necessity of cautious implementation to prevent the introduction of a new system fraught with challenges. He stressed the importance of oversight if airlines were to employ arbitrators permanently, to ensure a fair system where consumers have an equal chance of success.
Jack also cautioned against practices in Europe where consumers sometimes sell their claims to competing entities, which he deemed unacceptable and urged to be avoided in Canada. He advocated for transparency in disclosing data on the success rates of airlines versus customers in complaints resolutions to build public trust in the system.
Despite Air Canada’s high success rate in the current complaints system, Karl Moore, an airline expert and associate professor at McGill University, commended the airline for its efforts to enhance the complaints process for consumers. He viewed the program positively, noting that the involvement of the Canadian Transport Agency instilled confidence that the pilot could lead to substantial improvements.
Moreover, the new process will not require customers to sign non-disclosure agreements, unlike the existing regulatory system, which restricts public disclosure of complaint outcomes unless both parties agree to waive confidentiality. This change is seen as a step towards enhanced transparency, allowing dissatisfied consumers to voice their concerns openly.
The pilot project is expected to conclude in the summer, following which Air Canada plans to share its findings with the government and engage in discussions on potential next steps.
