Air Canada Ordered to Pay Passengers $10M in Damages After Class Action Over Ticket Prices

TOP STORY

The Quebec Court of Appeal is ordering Air Canada to pay passengers more than $10 million in damages in a class-action lawsuit that alleged they were charged higher amounts than the ticket price advertised.

Air Canada ordered to pay passengers $10M in damages after class action over ticket prices | CBC News

Decisions

  • Appeal, class action – Union des consommateurs c. Air Canada2025 QCCA 480 Class action under Quebec Consumer Protection Act (“CPA”) – claim that Air Canada’s price breakdown practice on its website between June 2010 and February 2012 violated s. 224(1)(c) of CPA – s. 224(1)(c) prohibits charging more than price announced – appeal of decision that Air Canada contravened CPA but denying damages in the absence of evidence of prejudice – plaintiff appealed findings on contractual and punitive damages – defendant appealed finding that it is subject to CPA – Court first considered doctrine of paramountcy to determine application of CPA to Air Canada – Canada Transportation Act (“CTA”) modified in 2007 to mandate regulation on price advertising of air services, but new regulation only in effect in December 2012 – no incompatibility between CPA and CTA in terms of price advertising – Court rejected defendant’s claim that delayed implementation of CTA provisions on price advertising was intended to exempt airlines to protect competitiveness – Air Canada subject to CPA – with respect to damages, Court first considered whether presumption of prejudice applied under CPA – plaintiff needed to show proximity link between prohibited practice and contractual relationship – Court found trial judge erred in conducting subjective analysis and considering several elements not relevant to analysis – proximity link established – on issue of quantum, Court agreed with trial judge’s conclusion that plaintiff did not quantify actual prejudice – but Court disagreed with trial judge’s conclusion on issue of punitive damages – even if no evidence of prejudice, Air Canada showed negligence and disregard for consumers’ rights – price breakdown practice aimed to protect commercial interests not consumers’ as shown by decision to maintain practice even after it was clear it would be prohibited by CTA – need to dissuade such behaviour – Court awarded $10M claimed by plaintiff, noting Air Canada’s behaviour was serious, intentional, and far-reaching – appeal granted in part and $10M punitive damages awarded
  • Compensation, delay, corporate veil – Keung v. WestJet Airlines Ltd., 2025 BCCRT 506 Application for $1,510 in compensation under Air Passenger Protection Regulations for delayed flight operated by Swoop – applicants argued that WestJet dissolved Swoop and assumed Swoop’s assets and liabilities – Swoop a wholly owned subsidiary of WestJet – Tribunal noted that parent corporation not ordinarily liable for subsidiary’s obligations – lifting corporate veil and imposing liability on parent corporation requires more than exercise of total control by parent over subsidiary – requires conduct akin to fraud – no such conduct in this dispute – WestJet not liable for Swoop’s obligations – no specific claim against WestJet – Tribunal also rejected applicants’ “amalgamation” and “integration” arguments – claim dismissed

CIRB Decisions

  • Bargaining unit order – GardaWorld Security Screening Inc. – Order No. 12076-U USW certified to be bargaining agent for unit comprising “all employees of GardaWorld Security Screening Inc. working as pre-board screening officers, security checkpoint coordinators and security screening trainers at the Montréal-Trudeau International Airport, excluding security service managers and those above the rank of security service manager

CTA News and Decisions  

  • Application – Gridiron Air LLC – Determination No. A-2025-66 Application for licence to operate a non-scheduled international service in accordance with Annex III of the Air Transport Agreement between Canada and the United States – license issued, subject to conditions
  • Application – Oceanside Air Ltd. – Determination No. A-2025-67 Application to continue suspension of Licence 210042 instead of cancelling – licence suspension continued
  • Application – Lawrence John Swanton & Christina Maria Swanton – Determination No. A-2025-68 Application to continue the suspension of Licence 110059 instead of cancelling – licence suspension continued
  • Suspension – Air 7, LLC – Order No. 2025-A-S-58 Licence 240016 
  • Suspension – FliteAccess, LLC – Order No. 2025-A-S-59 Licence 220000 – reinstated effective April 23, 2025

TC/TSB News

Industry Association News

Union News 

Airport News 

Rotary Operator News

General Aviation News

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