Air Canada has successfully challenged a ruling by the Canadian Transportation Agency (CTA) that ordered the airline to compensate a passenger $2,079 for delayed baggage. 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 reevaluation by a new officer.
The incident stems from a 2022 flight taken by Alaa Tannous and his wife, Nancy, from Toronto to Vancouver, where their checked baggage arrived a day later. Initially, Air Canada offered Tannous $250 as compensation, which led him to lodge a complaint with the CTA.
Court documents reveal that Air Canada contested the CTA’s ruling, arguing that the awarded compensation to Tannous was based on flawed grounds, citing that his replacement purchases were excessive and included luxury items bought after the suitcase was returned.
Justice Manson concurred with Air Canada’s argument, highlighting that the CTA’s decision failed to justify the link between the delayed baggage and the subsequent purchases made by Tannous. Air Canada expressed satisfaction with the court’s ruling.
Tannous mentioned that he received court papers from Air Canada on Christmas Eve in 2024 but chose not to engage in the legal proceedings without legal representation, considering it a futile investment of both money and time. He refrained from commenting on the ongoing status of the case.
Regarding the post-arrival purchases, Tannous had mentioned in a February interview with CBC News that Air Canada had authorized him to spend a reasonable amount on essential items due to the delayed baggage issue. Despite his pre-arrival expenses totaling $1,691.98, the CTA granted him over $2,000 in compensation, which Tannous deemed fair.
Notably, purchases made after the luggage was returned, such as a pair of sneakers and a personalized Tumi suitcase, raised concerns during the legal proceedings. Justice Manson emphasized that a different CTA officer should provide a more coherent decision encompassing the entire compensation claim.
Under the current regulations, disputing parties can challenge CTA rulings in Federal Court. Air Canada clarified that they pursued the case against Tannous to seek clarity on the reasonable expenses that customers can claim in such situations.