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Air Canada ordered to increase payout to bumped passengers

VANCOUVER (NEWS1130) – Air Canada has been ordered to boost compensation paid to passengers it bumps from overbooked flights.

The Canadian Transportation Agency has ruled that the existing practice of paying $100 cash or $200 travel voucher is unreasonable in cases that are not due to operational and safety reasons.

It has given the airline 30 days to determine new compensation.

Bruce Cran with the Consumers’ Association of Canada says it’s a small step in the right direction but isn’t the complete answer.

“We would like to see it much more like the European Union provides, they’ve had very good protection for the consumers over there,” says Cran.

In the EU, passengers are given up to $800 based on how long they have to wait and how far they are traveling. In the US, passengers can get up to $1,350 based on the same criteria.

Cran says consumers should be compensated for the inconvenience they’ve had to endure. “That would include such things like an overnight hotel if the flight went into the next day and meals for the period they have to hang around and wait.”