Air Canada has successfully challenged a ruling by the Canadian Transportation Agency (CTA) that mandated the airline to compensate a passenger $2,079 for delayed luggage. Following an 11-month legal battle initiated by Air Canada, Federal Court Justice Michael Manson deemed the CTA officer’s 2024 decision as unreasonable. The case has been referred back to the CTA for a new officer to review the compensation claim.
The incident stems from a 2022 flight taken by Alaa Tannous and his wife from Toronto to Vancouver, where their checked baggage arrived a day late. Initially, Air Canada offered Tannous $250 in compensation, but he found the amount unsatisfactory and lodged a complaint with the CTA.
Court documents reveal that Air Canada contended the CTA’s directive to award Tannous $2,079 was flawed, as the purchases he made to replace the items in his delayed suitcase were deemed excessive and included luxury items. Justice Manson concurred with Air Canada, highlighting that the CTA’s decision was questionable due to the inclusion of purchases made after the bag was returned.
Air Canada expressed contentment with the court’s ruling, as per a statement provided to CBC News. Tannous, who was served court papers by Air Canada on Christmas Eve in 2024, opted not to engage in the legal proceedings, citing concerns over expenses and time wastage. He refrained from commenting on the ongoing status of the case.
In a separate development, Tannous recounted to CBC News in February that Air Canada had permitted him to spend a reasonable amount on essential items during the period when their luggage was missing. He submitted receipts totaling $3,435 for compensation, although regulations at the time capped claims at around $2,350 for delayed baggage.
Justice Manson highlighted discrepancies in the compensation amount awarded to Tannous, particularly noting purchases made post-recovery of the luggage, such as sneakers and a personalized Tumi suitcase. While Air Canada argued against compensating for luxury items, the judge deferred the decision to a different CTA officer for a more comprehensive review.
In instances where disagreements arise between passengers or airlines and CTA rulings, parties can challenge the decisions in Federal Court. Air Canada clarified that its legal action against Tannous aimed to clarify the parameters of reasonable customer expenses eligible for claims.