Simple Money Podcast – Canada’s Own Personal Finance Podcast – Download here!
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Hello and welcome back to Simple Money Podcast, Canada’s own personal finance podcast that presents personal finances issues in short and informative episodes. I’m your host, Matthew Siwiec – Also known as the friendly financial coach. So first of all, thank you so much for being patient for this episode. I just completed writing my certified financial planning exam, which is an intense 6-hour exam that essentially consumed my life over the last couple months. Good news is that it’s now over and I’m back! In the future you can expect some exciting new content that includes looking at current events that are affecting the personal finances of Canadians across the country.
Today, we’re going to be covering one of these recent changes and one that’s just in time for any summer travel plans – New rights for all Canadian airline passengers Beginning in just under a month on July 15th, new rules are being put in place to protect the rights of airline passengers that are flying within, from and to, Canada. These updated rights have new rules and compensation attached to them in situations that have passengers bumped from their flights due to overbooking, have lost or damaged baggage, or are waiting on the tarmac for extended periods of time. These new regulations will hopefully help provide an increased level of service and offer protection to those that that are affected.
These new rules offer compensation for situations when an airline is in fault, but not when it’s due to safety or other delays outside of the airline’s control. Issues such as overbooking, regular maintenance, flight cancellations, tarmac delays, and denials of boarding are covered. On the other hand, issues that arise from mechanical concerns, weather, political situations, and more are not covered. The specific new regulations revolve around four key rules First off, passenger that are denied boarding a plane due to overbooking will be compensated. This up-front amount is based on how long they are delayed from reaching their final destination. Airlines are also required to rebook the affected passenger on another flight. The minimum compensation amounts is $900 for delays under 6 hours, $1,800 for delays of between 6 and 9 hours, and $2,400 for delays over 9 hours.
The next rule is if an airline loses or damages your luggage. You are also liable for up to $2,100. New procedures are also required to be drafted for transport musical instruments.
The third new rule is for passengers that have already boarded their plan and are delayed on the Tarmac. If a delay is over 3-hours, then the airline needs to let the passengers off the plane unless they expect to leave within 45 minutes. During this wait, the plane must also be properly ventilated, have working bathrooms, and give access to food & drinks.
Finally, information about any delays, cancellations, denials of boarding, and lost baggage must be readily provided with updates available about flight statuses every 30 minutes
Another set of rules will be put in place just before the holidays on December 15th, 2019. These new rules will protects and offer compensation to passengers affected by flight delays. It also includes rules that forces airlines to allow children to travel with their parents.