In a dramatic and swift move, the Canadian government proposed amendments to the Transportation Act to make passenger compensation mandatory and automatic by canceling the exemptions that allow airlines to avoid it.

These amendments come following the chaos that occurred at Canadian airports last summer and during the year-end holidays.

At a press conference held today, Federal Transport Minister Omar Alghabra announced that these changes in Bill S-47 related to budget implementation will come into effect as soon as it is passed.

"Among the changes, compensation will be the default option," Minister Alghabra said, "so in addition to their right to a financial refund, most air travelers will be entitled to financial compensation."

According to the Minister of Transport in Justin Trudeau’s Liberal government, these proposed legislative changes will allow the Canadian Transportation Agency (OTC / CTA) to increase the responsibility of airlines in dealing with passengers and their luggage in cases of sudden flight cancellations, long delays, or other disruptions.

Under the proposed changes to the law, the Canadian Transportation Agency may, by regulation, impose compensation on passengers who were defrauded by an airline during any disruptions, except for "very limited circumstances" defined in the agency's regulations.

The agency may also remove exemptions stipulated in the regulations based on broad categories of transportation disruptions (such as disruptions beyond the control of airlines, for example) that airlines use to avoid paying compensation to passengers.

It can also make the distribution of food and water to passengers mandatory during all disruptions affecting air traffic.

It can also set strict requirements for delayed baggage and impose compensation for passengers following a statement to travelers issued by the government.

The Canadian Transport Minister, of Syrian origin, also intends to find a solution for the very long processing times for complaints against airlines.

According to him, the proposed amendments to the Transportation Act will allow the Canadian Transportation Agency to replace the current processing procedure it follows, which involves arbitration by members appointed by the Governor in Council, with a simpler approach primarily led by office staff.