Canadian airlines are demanding the Federal Court of Appeal today to cancel the rules that enhanced compensation for passengers who experienced flight delays and baggage damage.

Air Canada and Porter Airlines Inc., along with 16 other applicants including the International Air Transport Association, argue that the payments required under the three-year-old Passenger Rights Charter violate international standards and should be considered invalid.

The court application was first submitted in 2019, stating that the new provisions conflict with the Montreal Convention, a multilateral treaty, by setting compensation amounts based on the duration of the delay and "regardless of the actual damage incurred."

And cancelling the regulations "would avoid confusing passengers" who may be subject to travel regulations from multiple jurisdictions on international flights.

Under federal rules, passengers must be compensated up to $2,400 if they are denied boarding due to overbooking on the flight, and receive up to $2,100 for lost or damaged baggage. Delays and other payments for canceled flights require compensation of up to $1,000.

The case gained renewed importance for thousands of Canadians starting from March 2020 as the COVID-19 pandemic and travel restrictions led to mass flight cancellations and stoppage of aviation activity.

Hearings are scheduled for today and Thursday.