On October 4, 2024, the Supreme Court of Canada released its long-awaited decision of International Air Transportation Association v. Canada (Transportation Agency), 2024 SCC 30. A primary issue before Canada's highest Court was whether a federal agency could require airlines to provide compensation to passengers for certain international flight disruptions.
Background
In 2018, the Canada Transportation Act ("Act") was amended by the federal government to allow the Canadian Transportation Agency ("Agency") to make regulations applicable to international air travel both going in and out of Canada.
In 2019, the Agency adopted the Air Passenger Protection Regulations ("Regulations") which provided for standardized compensation programs for international air travel complications, including international flight delays and cancellations, airline-caused flight disruptions, and baggage claims.
The International Air Transport Association, the Air Transportation Association of America, and several prominent air carriers (collectively "Airlines") challenged the applicability of the Regulations and the provisions therein before the Federal Court of...
