Air Canada offered customers the option to transfer compensation claims to an independent third-party provider to improve resolution timelines.
Air Canada piloted an alternative process to resolve compensation claims as Canada’s transportation regulator continued to face a backlog of cases.
In an email, the airline said 500 customers were randomly selected and given the option to transfer their outstanding Canadian Transportation Agency (CTA) claims to an independent third-party provider. The airline said it consulted with Transport Canada and the CTA on the design of the pilot and selected Canada Aviation Dispute Resolution (CADR) to handle the claims.
CADR specialised in resolving air travel complaints through Alternative Dispute Resolution (ADR) and operated as a subsidiary of The CDRL Group, a not-for-profit organisation certified to resolve complaints in multiple regions.
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“For airlines, it has the potential to address customer concerns, bring efficiency and consistency to the process and reduce issues associated with unresolved claims by shortening the adjudication timeline,” said Marc Barbeau, Executive Vice President, Chief Legal Officer and Corporate Secretary, Air Canada.
During the pilot, CADR was expected to issue decisions within 90 days after receiving complete information from both parties. Air Canada stated that the decisions would be binding on the airline but not on customers, who could decline the outcome and continue through the standard CTA process.
The airline also said participation in the pilot would be free for customers and would not affect their existing claims within the CTA system. The pilot came as the CTA continued to face a backlog of more than 93,000 complaints, with delays extending the resolution process significantly for passengers.
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