NACC says new APPR rules would impact affordability, connectivity if adopted

Following the release of proposed regulations under the Air Passenger Protection Regulations (APPR), the National Airlines Council of Canada’s (NACC) president and CEO, Jeff Morrison released the following statement:

“The Canadian Transportation Agency (CTA) has released updated proposed regulations under the APPR regime.  Throughout the initial consultation period in 2023, the CTA heard significant concerns from a diverse range of organizations, including provinces and territories, municipalities, airports, small and large airlines, international organizations, chambers of commerce, unions, tourism groups, and regional entities.”

Morrison points out that: “Concerns included the negative impact that the CTA’s proposals would have on regional connectivity, cost of air travel, ability to meet regulatory requirements, impact on pilots, and so forth.  The proposed regulations fall short of addressing these concerns, as they provide for requirements that are costly, burdensome and do not take into consideration the complex operational reality of airlines.”

And he continues: “If adopted, they would impact affordability and connectivity for Canadians. Over the coming days, we will review in greater detail the CTA’s newest proposals and will submit our comments in the course of the consultation process.”

NACC president and CEO points out that: “Despite the absence of any new regulations, Canadian airlines have demonstrated substantial progress in improving air travel performance, delivering more efficient, predictable and reliable service to passengers.  Furthermore, as many experts during the consultation period confirmed, since the introduction of a similar passenger rights regime in the European Union over 10 years ago (EU261), there has been no direct impact on performance, but costs have risen significantly.”

Morrison observes that: “Canada’s airlines strongly believe the federal government needs to focus its efforts on improving the competitiveness of the overall air travel system and its affordability, and will not add costs to the system.”

And he adds: “The federal government must support the system by reinvesting airport rent into airport infrastructure, reforming the CTA claims adjudication process to reduce the existing backlog, reviewing all federal fees and charges, and modernizing Canada’s regulatory regime.”

Morrison concludes: “Canada’s airlines will continue to advocate for changes that will positively improve air travel in Canada – something APPR reforms cannot do.”

In mid-December, NACC had sent a letter to the Premiers that outlined their members concerns regarding the impact of existing federal fees and charges, as well as certain cost and regulatory proposals, on the affordability of air travel in Canada, and their impact on regional connectivity.

Click here to read NACC’s letter to the premiers.

NACC represents Canada’s largest air carriers, which include Air Canada, Air Transat, Jazz Aviation LP and WestJet.