Travellers whose flights are cancelled due to crew shortages may be entitled to compensation of up to $1,000 under federal passenger protection rules, according to a Federal Court of Appeal decision that rejected WestJet’s bid to avoid paying for “safety-related” cancellations.
The court upheld a Canadian Transportation Agency ruling requiring WestJet to compensate a passenger whose July 2021 flight from Regina to Toronto was cancelled less than an hour before departure when the first officer called in sick.
WestJet had argued that any flight disruption caused by safety concerns should exempt airlines from paying compensation, regardless of the circumstances leading to the safety issue. The airline claimed that requiring compensation could pressure crews to make unsafe decisions to avoid financial penalties.
Airlines must prove disruptions were unavoidable
The Federal Court of Appeal rejected WestJet’s interpretation, stating it would “effectively defeat the consumer protection scheme established by the Regulations to redress the acute imbalance in market power to which passengers have historically been subjected in relation to air carriers.”
The court clarified that airlines can only claim safety-related exemptions from compensation when they demonstrate the disruption was unavoidable despite proper planning and contingency measures.
In the WestJet case, the airline provided only basic operational notes showing it failed to secure an alternate first officer, without explaining why efforts were unsuccessful or demonstrating what contingency plans existed, according to the court.
The agency found WestJet had not indicated whether it explored bringing in a replacement first officer to Regina, even if it meant delaying rather than cancelling the flight.
Compensation amounts vary by delay length
Under Canada’s Air Passenger Protection Regulations, implemented in 2019, passengers can claim compensation for flight disruptions within airline control. The amounts depend on delay duration and carrier size, according to the regulations cited in the ruling:
Large carriers (2+ million passengers annually):
- 3-6 hour delays: $400
- 6-9 hour delays: $700
- 9+ hour delays: $1,000
Small carriers:
- 3-6 hour delays: $125
- 6-9 hour delays: $250
- 9+ hour delays: $500
Passengers denied boarding can claim $900 to $2,400 depending on delay length, according to the regulations.
Three categories of flight disruptions
The federal regulations establish three categories of flight disruptions with different compensation requirements, according to the court:
- Within carrier control: Full compensation and treatment standards required
- Within carrier control but required for safety: Treatment standards but no compensation
- Outside carrier control: Minimal obligations, alternate arrangements only
The court found airlines cannot simply claim safety exemptions without proving they followed reasonable operational and contingency planning standards.
Airlines must demonstrate they are “prudent and diligent” carriers that have taken reasonable measures to plan operations and implement contingency plans when disruptions occur, according to the ruling.
Evidence requirements for safety claims
The transportation agency previously issued guidance requiring substantial evidence from airlines claiming crew shortage disruptions fall within safety or outside-control categories, according to the court.
Required documentation includes crew scheduling systems, contingency plans, and specific efforts to find replacement crew members.
Air Canada, which intervened in the case, had argued the agency was holding carriers to “an unattainable standard of perfection” by requiring airlines to show nothing else could have prevented disruptions, according to the ruling.
The court addressed these concerns, stating the framework should focus on whether carriers have reasonable plans and follow them appropriately, rather than second-guessing decisions with hindsight.
Broader impact on airline operations
The decision reinforces that airlines cannot use safety concerns as blanket exemptions from passenger compensation requirements without demonstrating genuine operational diligence, according to the court.
The ruling affects all airlines operating in Canada under the federal passenger protection framework, which covers flights to, from and within Canada.
Travellers can file compensation requests directly with airlines within one year of flight disruptions, with carriers required to respond within 30 days, according to the regulations.
