Docket: A-366-14
Citation:
2015 FCA 269
CORAM:
|
DAWSON J.A.
RYER J.A.
NEAR J.A.
|
BETWEEN:
|
DR. GÁBOR LUKÁCS
|
Appellant
|
and
|
CANADIAN
TRANSPORTATION AGENCY AND BRITISH AIRWAYS PLC
|
Respondents
|
REASONS
FOR JUDGMENT
NEAR J.A.
I.
Introduction
[1]
The appellant appeals from a May 26, 2014
decision of the Canadian Transportation Agency (the Agency), which concerns the
compensation that British Airways must pay to passengers to whom it denies
boarding (Decision No. 201-C-A-2014). He contests both the substance of the
decision and the fairness of the procedure leading up to it. This Court granted
the appellant leave to appeal under section 41 of the Canada Transportation
Act, S.C. 1996, c. 10.
II.
Facts
[2]
On January 30, 2013, the appellant filed a
complaint with the Agency concerning a number of matters involving British
Airways. On January 17, 2014, after an exchange of submissions by the parties,
the Agency released its decision.
[3]
Only one of the matters figuring in the January
17, 2014 decision remains at issue in this appeal, namely the matter of “denied boarding compensation”. This term refers to
the compensation that an airline must pay to passengers to whom it denies
boarding as a result of overbooking a flight. The amount that British Airways
is required to pay is set out in Rule 87(B)(3)(B) of International Passenger
Rules and Fares Tariff No. BA-1, NTA(A) No. 306.
[4]
In his initial complaint, the appellant argued
that Rule 87(B)(3)(B) was unreasonable within the meaning of section 111 of the
Air Transportation Regulations, SOR/88-58 (the ATR). The
appellant put forward a number of arguments in support of this submission.
[5]
First, the appellant argued that the Rule should
reflect British Airways’ obligations under European Union Regulation (EC) No.
261/2004, which applies to all flights departing from an airport in the United
Kingdom (U.K.) and operated by European Union (E.U.) airlines (air carriers, or
carriers) with a destination in the U.K. The appellant maintained that British
Airways would not suffer any competitive disadvantage by amending the Rule to
reflect the E.U. Regulation. He further submitted that British Airways has
complied with the Regulation for flights from the U.K. to Canada, but has
failed to comply with the Regulation for flights from Canada to the U.K. The
appellant stated that he was not asking the Agency to enforce the E.U.
Regulation. Rather, he was asking the Agency to consider the reasonableness of
the Rule, and appropriate substitutes, in light of the Regulation.
[6]
The Agency concluded that it would not require
British Airways to incorporate the provisions of the Regulation. The Agency
based its conclusion on one of its previous decisions, Decision No.
432-C-A-2013 (Nawrot et al v. Sunwing Airlines Inc.), in which it
considered an argument regarding the same E.U. Regulation and determined that
it would only consider the reasonableness of carriers’ tariffs by reference to
legislation or regulations that it is able to enforce. The relevant paragraph
of Decision No. 432-C-A-2013 reads as follows:
[103] As to the reasonableness of
carriers’ tariffs filed with the Agency, the Agency makes determinations on
provisions relating to legislation or regulations that the Agency is able to
enforce. Legislation or regulations promulgated by a foreign authority, such as
the European Union’s Regulation (EC) 261/2004, do not satisfy this criterion.
If a carrier feels compelled or has been instructed by a foreign authority to
include a reference in its tariff to that authority’s law, the carrier is
permitted to do so, but it is not a requirement imposed by the Agency.
[7]
Second, the appellant argued that Rule
87(B)(3)(B) was unreasonable because it was inconsistent with the principle of
a flat rate of denied boarding compensation. Rule 87(B)(3)(B) provides that
when a passenger is denied boarding to a flight from Canada to the U.K.,
British Airways will pay the full value of the replacement ticket to the
passenger’s next stopover, plus between $50 and $200.
[8]
The Agency concluded that the Rule may be
unreasonable within the meaning of subsection 111(1) of the ATR because
British Airways had not demonstrated how it would suffer a competitive
disadvantage if it were to raise the amounts of denied boarding compensation.
[9]
Third and finally, the appellant argued that
Rule 87(B)(3)(B) purports to pre-empt the rights of passengers who accept
denied boarding compensation to seek damages under other laws and, as such,
fails to provide passengers with a reasonable opportunity to fully assess their
compensation options. The Agency agreed, finding the Rule unreasonable within
the meaning of subsection 111(1) of the ATR insofar as it purports to
provide a “sole remedy” for denied boarding.
[10]
In the Order issued with its January 17, 2014
decision, the Agency provided British Airways with the opportunity to “show cause” why it should not be required to amend
Rule 87(B)(3)(B) to bring it in conformity with one of three denied
boarding compensation schemes listed by the Agency, or to propose a new scheme
that the Agency may consider to be reasonable. The Order also stipulated that
the appellant would have the opportunity to file comments on British Airways’ answer
to the show cause Order.
[11]
On March 17, 2014, British Airways filed its
answer. In this answer, British Airways stated that it was choosing to
implement one of the four schemes listed in the Order, namely “[t]he regime proposed by Air Canada during the proceedings
related to Decision No. 442-C-A-2013 (Azar v. Air Canada)”.
British Airways proposed amending Rule 87(B)(3)(B) to provide that, on flights
from Canada to the U.K., passengers who were denied boarding would be
compensated in the amount of CAD$400 in cash or equivalent for delays of zero
to four hours, and in the amount of CAD$800 for delays of over four hours.
[12]
On March 26, 2014, in accordance with the show
cause Order, the appellant filed comments in response to the answer given by
British Airways.
[13]
On March 28, 2014, British Airways filed a reply
to the appellant’s March 26, 2014 submissions. On April 1, 2014, the appellant
wrote to the Agency seeking permission to provide submissions in response to
British Airways’ March 28, 2014 reply.
[14]
In Decision No. LET-C-A-25-2014, dated April 16,
2014, the Agency struck from the record the submissions made by British Airways
on March 28, 2014 and those made by the appellant on April 1, 2014. The Agency
also directed the appellant to amend his March 26, 2014 comments by removing
any submissions unrelated to the specific matter of the denied boarding
compensation regime proposed by Air Canada in Decision No. 442-C-A-2013 (Azar
v. Air Canada).
[15]
On April 23, 2014, the appellant asked the
Agency to reconsider its April 16, 2014 decision. On May 2, 2014, in Decision
No. LET-C-A-29-2014, the Agency denied the appellant’s request for
reconsideration. The appellant filed a redacted version of his March 26, 2014
submissions “under protest” shortly thereafter,
on May 8, 2014.
[16]
On May 26, 2014, the Agency issued Decision No.
201-C-A-2014 (the final decision), the decision at issue in this appeal.
[17]
In this decision, the Agency first summarized
the appellant’s response, which was that the Proposed Rule was unreasonable
because it only applied to flights from Canada to the U.K., and not to flights
from the U.K. to Canada. In support of this argument, the appellant referenced
Decision No. 227-C-A-2013 (Lukács v. WestJet), in which the Agency had
determined that:
… The failure to establish conditions
governing denied boarding compensation for flights to and from Canada is
contrary to Decision No. 666-C-A-2001. Therefore, the Agency finds that if
Proposed Tariff Rule 110(E) were to be filed with the Agency, it would be
considered unreasonable.
(At para. 39; emphasis added)
[18]
In its analysis, the Agency determined that
British Airways’ Proposed Rule was consistent with the proposal made by Air
Canada in Decision No. 442-C-A-2013 in terms of the amount of compensation. However,
the Agency determined that, in terms of its application, the Proposed Rule was
inconsistent with Air Canada’s proposal in Decision No. 442-C-A-2013. Air
Canada’s proposal applied to flights from Canada to the E.U., whereas British
Airways’ proposal applied only to flights from Canada to the U.K.
[19]
The Agency therefore concluded that the Proposed
Rule was unreasonable, and that, as a result, British Airways had failed to
show cause. The Agency ordered British Airways to file a Proposed Rule that
would apply to flights from Canada to the E.U.
III.
Legislative Framework
[20]
Section 110 of the Air Transportation
Regulations requires air carriers operating international service in Canada
to create and file with the Agency a tariff setting out the terms and
conditions of carriage. The tariff is a contract between the carrier and its
passengers.
[21]
Paragraph 122(c)(iii) of the ATR
stipulates that carriers are required to include in their tariff terms and
conditions relating to denied boarding compensation:
122. Every tariff shall contain
|
122. Les tarifs doivent contenir :
|
…
|
[…]
|
(c) the
terms and conditions of carriage, clearly stating the air carrier’s policy in
respect of at least the following matters, namely,
|
c) les
conditions de transport, dans lesquelles est énoncée clairement la politique
du transporteur aérien concernant au moins les éléments suivants :
|
…
|
[…]
|
(iii)
compensation for denial of boarding as a result of overbooking,
|
(iii) les indemnités pour refus d’embarquement à cause de sur
réservation,
|
…
|
[…]
|
[22]
Section 111 of the ATR sets out the
requirements by which carriers must abide when setting terms and conditions of
carriage:
111. (1) All tolls and terms and
conditions of carriage, including free and reduced rate transportation, that
are established by an air carrier shall be just and reasonable and shall,
under substantially similar circumstances and conditions and with respect to
all traffic of the same description, be applied equally to all that traffic.
|
111. (1) Les taxes et les conditions de
transport établies par le transporteur aérien, y compris le transport à titre
gratuit ou à taux réduit, doivent être justes et raisonnables et doivent,
dans des circonstances et des conditions sensiblement analogues, être
imposées uniformément pour tout le trafic du même genre.
|
|
(2) No air carrier shall, in respect of tolls or the terms and
conditions of carriage,
|
(2) En ce qui
concerne les taxes et les conditions de transport, il est interdit au
transporteur aérien :
|
|
|
(a) make
any unjust discrimination against any person or other air carrier;
|
a)
d’établir une distinction injuste à l’endroit de toute personne ou de tout
autre transporteur aérien;
|
|
|
(b) give
any undue or unreasonable preference or advantage to or in favour of any
person or other air carrier in any respect whatever; or
|
b)
d’accorder une préférence ou un avantage indu ou déraisonnable, de quelque
nature que ce soit, à l’égard ou en faveur d’une personne ou d’un autre
transporteur aérien;
|
|
(c)
subject any person or other air carrier or any description of traffic to any
undue or unreasonable prejudice or disadvantage in any respect whatever.
|
c) de
soumettre une personne, un autre transporteur aérien ou un genre de trafic à
un désavantage ou à un préjudice indu ou déraisonnable de quelque nature que
ce soit.
|
(3) The Agency
may determine whether traffic is to be, is or has been carried under
substantially similar circumstances and conditions and whether, in any case,
there is or has been unjust discrimination or undue or unreasonable preference
or advantage, or prejudice or disadvantage, within the meaning of this
section, or whether in any case the air carrier has complied with the
provisions of this section or section 110.
|
(3) L’Office peut
décider si le trafic doit être, est ou a été acheminé dans des circonstances
et à des conditions sensiblement analogues et s’il y a ou s’il y a eu une
distinction injuste, une préférence ou un avantage indu ou déraisonnable, ou
encore un préjudice ou un désavantage au sens du présent article, ou si le transporteur
aérien s’est conformé au présent article ou à l’article 110.
|
|
|
|
|
|
|
|
|
|
[23]
Section 113 of the ATR allows the Agency
to disallow any tariff, or any portion of a tariff, that does not comply with
the requirements of section 111:
113. The Agency may
|
113. L’Office peut :
|
(a) suspend any tariff or portion of a tariff that appears
not to conform with subsections 110(3) to (5) or section 111 or 112, or
disallow any tariff or portion of a tariff that does not conform with any of
those provisions; and
|
a) suspendre tout ou partie d’un tarif qui
paraît ne pas être conforme aux paragraphes 110(3) à (5) ou aux articles 111
ou 112, ou refuser tout tarif qui n’est pas conforme à l’une de ces
dispositions;
|
(b)
establish and substitute another tariff or portion thereof for any tariff or
portion thereof disallowed under paragraph (a).
|
b) établir et substituer tout ou partie
d’un autre tarif en remplacement de tout ou partie du tarif refusé en
application de l’alinéa a).
|
IV.
Positions of the Parties
[24]
The appellant submits that the Agency’s final
decision is unreasonable, as it neglects to impose any denied boarding
compensation on British Airways flights departing from the E.U., contrary to
paragraph 122(c)(iii) of the ATR. The appellant also submits that
the Agency deprived him of a meaningful opportunity to reply to British
Airways’ response to the show cause Order, and thus breached its duty of
procedural fairness.
[25]
The appellant asks this Court to allow the
appeal and to set aside the final decision of the Agency. He also asks the
Court to set aside the Agency’s procedural decisions, to the extent that these
decisions direct the appellant to delete portions of his submissions. The
appellant seeks his disbursements in any event of the cause and, if he is
successful, a moderate allowance for the time that he devoted to this appeal.
[26]
The respondent British Airways submits that the
Agency’s final decision is reasonable, and asks this Court to dismiss the
appeal, with costs. The respondent Agency has not provided any written
submissions in this appeal.
V.
Issues
[27]
There are two issues in this appeal:
1.
Does the substance of the Agency’s final
decision contain a reversible error?
2.
Did the Agency breach its duty of procedural
fairness?
VI.
Standard of Review
[28]
The standard of review applicable to the first
issue, the Agency’s substantive decision, is reasonableness. The issue of
whether British Airways had indeed “shown cause”
is a question of mixed fact and law. As such, the standard of review is
presumed to be reasonableness (Dunsmuir v. New Brunswick, 2008 SCC 9 at
para. 51, [2008] 1 S.C.R. 190). Furthermore, the courts have generally reviewed
decisions of the Agency – an administrative body with specialized expertise –
on a deferential standard (Canadian National Railway Company v. Canadian
Transportation Agency, 2013 FCA 270 at para. 3, 454 N.R. 125, citing Council
of Canadians with Disabilities v. VIA Rail Canada Inc., 2007 SCC 15 at
para. 100, [2007] 1 S.C.R. 650).
[29]
Issues of procedural fairness are reviewable on
the correctness standard (Mission Institution v. Khela, 2014 SCC 24 at
para. 79, [2014] 1 S.C.R. 502). Correctness is therefore the standard of review
applicable to the second issue in this appeal.
VII.
Analysis
A.
Reasonableness of the Decision
[30]
The appellant submits that the final decision of
the Agency is unreasonable because it imposes on British Airways a tariff
relating to denied boarding compensation that only covers passengers travelling
from Canada to the E.U., and not those travelling from the E.U. to Canada.
[31]
The appellant submits that this outcome is
unreasonable because it is contrary to paragraph 122(c)(iii) of the ATR,
and creates a legal loophole, defeating the purpose for which paragraph 122(c)(iii)
of the ATR was enacted.
[32]
The appellant submits that paragraph 122(c)(iii),
which requires carriers to include in their tariff a policy concerning denied
boarding compensation, applies to both service from Canada to destinations
abroad, and to service from destinations abroad to Canada. The appellant
supports this submission by reference to the Agency’s Decision No. 227-C-A-2013
(Lukács v. WestJet). The appellant also refers to the more recent Agency
Decision No. 148-C-A-2015 (Ahmad v. Pakistan International Airlines
Corporation). The Agency found in both of these cases that an airline’s tariff
must include provisions that deal with denied boarding compensation both to and
from Canada.
[33]
As the appellant correctly points out, in
Decision No. 227-C-A-2013, the Agency found that a tariff rule that WestJet had
proposed was unreasonable because it did not set out compensation for flights
to and from Canada. The relevant paragraph which the appellant has relied upon
reads as follows:
[39] Although WestJet proposes to
revise Existing Tariff Rule 110(E) by deleting text that provides that denied
boarding compensation will not be tendered for flights to and from Canada,
Proposed Tariff Rule 110(E) only sets out compensation due to passengers who
are denied boarding for flights from the United States of America. The failure
to establish conditions governing denied boarding compensation for flights to
and from Canada is contrary to Decision No. 666-C-A-2001. Therefore, the
Agency finds that if Proposed Tariff Rule 110(E) were to be filed with the
Agency, it would be considered unreasonable.
[34]
Similarly, in Decision No. 148-C-A-2015 the
Agency found as follows:
[29] As PIA’s Tariff does not contain
terms and conditions of carriage that clearly state its policy in respect of
denied boarding and compensation for denied boarding as a result of overbooking
for travel to and from Canada, the Agency finds that PIA contravened paragraph
122(c) and subparagraph 122(c)(iii) of the ATR.
[35]
In the case before us the Agency appears to have
implicitly decided that it is not necessary for an airline to include in its tariff
a provision that clearly sets out its obligations with respect to denied
boarding compensation for flights departing the E.U. and coming to Canada. The
Agency found that British Airways need not reference E.U. Regulation (EC) No.
261/2004 in its Tariff. It is accepted by all parties to this appeal that
British Airways is bound by E.U. Regulation (EC) No. 261/2004 for its flights
departing the E.U. to other countries, including Canada.
[36]
The Agency supported this finding on the basis
of its prior Decision No. 432-C-A-2013, in which it stated:
[103] As to the reasonableness of
carriers’ tariffs filed with the Agency, the Agency makes determinations on
provisions relating to legislation or regulations that the Agency is able to
enforce. Legislation or regulations promulgated by a foreign authority, such as
the European Union’s Regulation (EC) 261/2004, do not satisfy this criterion.
If a carrier feels compelled or has been instructed by a foreign authority to
include a reference in its tariff to that authority’s law, the carrier is
permitted to do so, but it is not a requirement imposed by the Agency.
[37]
In my view, the finding in paragraph 103 merely
sets forth a policy decision that the Agency will not force an airline to
incorporate by reference a provision of another jurisdiction’s legislation on
the basis that the Agency cannot enforce the provisions of foreign legislation.
It does not specifically address whether a tariff must include a provision that
deals with denied boarding compensation quite independent of another jurisdiction’s
legislation for flights to and from Canada.
[38]
It is instructive to note that British Airways’
existing Tariff did in fact cover denied boarding compensation for flights “between points in Canada and points in the United Kingdom
served by British Airways” (Rule 87(B)). No clear explanation was
provided by the Agency as to why this was no longer required. Further, in
Decision No. 432-C-A-2013 at paragraphs 71 and 72, the Agency found that the
absence of language providing that passengers affected by denied boarding will
be eligible for compensation is unreasonable. In the case before us there is
also no language dealing with denied boarding compensation for flights from the
E.U. to Canada. It seems to me that Decision No. 432-C-A-2013 offers little
support for the proposition that British Airways need not set out clearly in
its tariff its obligations with respect to denied boarding compensation both to
and from Canada.
[39]
In addition, the option chosen by British
Airways pursuant to the show cause Order was “The
regime proposed by Air Canada during the proceedings related to Decision No.
442-C-A-2013 (Azar v. Air Canada)”. While the regime proposed by Air
Canada in Azar v. Air Canada dealt only with flights from Canada to the
E.U. pursuant to the facts of that case, it is important to note that the
tariff in respect of which the proposal applied also covers flights from the
E.U. to Canada. This is pursuant to Rule 90(A) of Air Canada’s tariff regime,
which adopts by reference E.U. Regulation (EC) No. 261/2004 for flights
originating in the E.U. and Switzerland.
[40]
The Agency decision in the case before us lacks
clarity with respect to whether British Airways should address denied boarding
compensation for flights to Canada from the E.U. In addition, there is an
apparent tension between the decision before us and the Agency’s prior
decisions, which seem to suggest that an airline tariff must include denied
boarding compensation provisions for both flights to and from Canada. In my
view it is necessary for the Agency to address this tension and apparent
inconsistency directly. In light of this, in my view this matter should be
returned to the Agency for re-determination. The Agency must clearly address
how British Airways is to “meet its tariff obligations
of clarity” so that “the rights and obligations
of both the carrier and passengers are stated in such a way as to exclude any
reasonable doubt, ambiguity or uncertain meaning” in situations where
the tariff is silent with respect to denied boarding compensation for inbound
flights to Canada (Decision No. 432-C-A-2013, referencing Decision No.
344-C-A-2013 (Lukács v. Porter Airlines Inc.)). In particular, the
Agency must clarify whether the tariff must in all instances set out denied
boarding compensation provisions for flights to and from Canada, or whether the
fact that British Airways passengers from the E.U. to Canada are covered by
E.U. Regulation (EC) No. 261/2004 is sufficient.
B.
Procedural Fairness
[41]
The appellant submits that the Agency breached
its duty of procedural fairness when it ordered him to redact the majority of
his March 26, 2014 submissions. He submits that in doing so, the Agency
deprived him of his right to make meaningful submissions in response to British
Airways’ proposal. Given the decision to refer this matter back to the Agency
there is no need to consider the procedural fairness issue raised by the
appellant. The Agency is best positioned to determine the extent of submissions
it will require for the redetermination of the issue set out above.
VIII.
Conclusion
[42]
I would allow the appeal and remit the matter to
the Agency for redetermination in accordance with these reasons.
[43]
This Court has previously seen fit to award this
appellant his disbursements, on the basis that his appeal was in the nature of
public interest litigation and that the issue raised was not frivolous (Lukács
v. Canada (Transportation Agency), 2014 FCA 76 at para 62, 456 N.R. 186). I
would award the appellant costs in the amount of $250.00 and his disbursements
in this Court, such amounts to be payable by British Airways.
"David G. Near"
"I agree.
C. Michael Ryer
J.A."
DAWSON J.A. (dissenting reasons)
[44]
I would dismiss this appeal for the following
reasons.
[45]
As noted by the majority, on January 30, 2013,
the appellant, Gábor Lukács, filed a complaint with the Canadian Transportation
Agency. The complaint alleged that certain provisions relating to liability and
denied boarding compensation contained in British Airways’ International
Passenger Rules and Fares Tariff No. BA-1, NTA(A) No. 306 were unclear and/or
unreasonable. Amongst other relief, the appellant requested that the Agency
disallow Rule 87(B)(3)(B) of the Tariff and direct British Airways to
incorporate into the Tariff the obligations contained in Regulation (EC) No. 261/2004
of the European Parliament and of the Council of 11 February 2004.
[46]
Regulation (EC) No. 261/2004 deals with
compensation to be paid to passengers in the event they are denied boarding. It
applies to every flight departing from an airport in the United Kingdom, and
every flight operated by a European Union carrier with a destination in the
United Kingdom. The appellant argued that British Airways’ Tariff should
reflect its legal obligation under the regulation.
[47]
In response, British Airways noted that while it
complies with Regulation (EC) No. 261/2004, it would be inappropriate for
the Agency to enforce foreign laws by requiring carriers to include provisions
of a European regulation in their Canadian contracts of carriage.
[48]
In his reply to British Airways’ response, the
appellant:
i)
accepted British Airways’ evidence that it
complies with the provisions of Regulation (EC) No. 261/2004 with respect to
passengers flying from the United Kingdom to Canada;
ii)
submitted that British Airways was currently not
complying with its obligations under Regulation (EC) No. 261/2004 with respect
to passengers flying from Canada to the United Kingdom;
iii)
submitted that the Agency ought to substitute in
the relevant portion of the Tariff a provision that reflects British Airways’
current practice with respect to denied boarding compensation paid to
passengers flying from the United Kingdom to Canada; and
iv)
submitted that the Tariff should require British
Airways to pay denied boarding compensation to passengers flying from Canada to
the United Kingdom in the amounts prescribed by Regulation (EC) No. 261/2004.
[49]
In Decision No. 10-C-A-2014, the Agency rejected
the appellant’s submissions on Regulation (EC) No. 261/2004, stating at
paragraph 113 of the decision that it would “not require
British Airways to incorporate the provisions of Regulation (EC) No. 261/2004
into British Airways’ Tariff, or make reference to that Regulation”. In
reaching this conclusion, the Agency quoted as follows from its earlier
Decision No. 432-C-A-2013:
As to the
reasonableness of carriers’ tariffs filed with the Agency, the Agency makes
determination on provisions relating to legislation or regulations that the
Agency is able to enforce. Legislation or regulations promulgated by a foreign
authority, such as the European Union’s Regulation (EC) 261/2004, do not
satisfy this criterion. If a carrier feels compelled or had been instructed by
a foreign authority to include a reference in its tariff to that authority’s
law, the carrier is permitted to do so, but it is not a requirement imposed by
the Agency.
[50]
The order which accompanied the decision
required British Airways “to amend its Tariff and
conform to this Order and the Agency’s findings set out in [the] Decision”.
[51]
The order went on to provide, at paragraph 144,
that:
[…] the Agency provides British Airways with
the opportunity to show cause, by no later than February 17, 2014, why the
Agency should not require British Airways, with respect to the denied boarding
compensation tendered to passengers under Rule 87(B)(3)(B), apply either:
1. The regime applicable in the United
States of America;
2. The regime proposed by Mr. Lukács in the proceedings related
to Decision No. 342-C-A-2013;
3. The regime proposed by Air Canada during the proceedings
related to Decision No. 442-C-A-2013; or
4. Any other regime that British Airways may wish to propose that
the Agency may consider to be reasonable within the meaning of subsection
111(1) of the ATR.
[52]
Decision No. 442-C-A-2013, referred to in the
third option offered to British Airways, dealt with the reasonableness of Air
Canada’s tariff as it related to denied boarding compensation for travel from
Canada to the European Union. The Agency found Air Canada’s existing denied
boarding compensation in connection with flights from Canada to the European
Union to be unreasonable. In the result, the Agency ordered Air Canada to amend
its tariff by filing its proposed denied boarding compensation amounts for
travel from Canada to the European Union.
[53]
As argued by British Airways, the appellant did
not seek leave to appeal Decision No. 10-C-A-2014 (British Airways’
memorandum of fact and law at paragraph 18).
[54]
In response to this decision, British Airways
proposed to apply the compensation regime proposed by Air Canada as set out in
Agency Decision No. 442-C-A-2013. The text of British Airways’ proposed tariff
was clear that it applied only to compensation payable for flights from Canada
to the United Kingdom. The proposed tariff was silent with respect to
compensation payable for flights from the United Kingdom to Canada.
[55]
The appellant replied to the proposal advanced
by British Airways, challenging the reasonableness of the proposal on the
ground that it failed to establish conditions governing denied boarding
compensation for flights from the United Kingdom to Canada. The appellant
submitted that British Airways’ proposal purported, albeit implicitly, to
exempt it from the obligation to pay denied boarding compensation for flights
from the United Kingdom to Canada.
[56]
Subsequently, in Decision No. LET-C-A-25-2014,
the Agency found that parts of the appellant’s reply submissions were unrelated
to the specific matter of the denied boarding compensation regime proposed by
Air Canada in the proceeding that led to Decision No. 442-C-A-2013. In result,
the Agency directed the appellant to refile his reply submissions, deleting all
submissions that were unrelated to the denied boarding compensation regime
proposed previously by air Canada in the proceeding that led to Decision No.
442-C-A-2013.
[57]
Later, the Agency dismissed a request that it
reconsider this decision (Decision No. LET-C-A-29-2014).
[58]
From this chronology it is apparent that in
Decision No. 10-C-A-2014, the Agency made a final decision that it would not
require British Airways to incorporate the provisions of Regulation (EC) No.
261/2004 into its tariff. By allowing British Airways the option to propose the
same compensation regime previously proposed by Air Canada, the Agency also
made a final decision that British Airways could, as it did, propose a tariff
that dealt only with denied boarding compensation amounts for travel from
Canada to the United Kingdom.
[59]
Any challenge to these decisions ought to have
been brought as an application for leave to appeal Decision No. 10-C-A-2014.
The appellant cannot challenge these decisions under the guise of a challenge
to Decision No. 201-C-A-2014.
[60]
It further follows that the Agency did not
breach procedural fairness by ordering that the appellant delete submissions in
his final reply that were not relevant to the proposed tariff regime advanced
by Air Canada that led to Decision No. 442-C-A-2013. The impugned submissions
were not relevant to the remaining issue before the Agency, and it was not
unfair for the Agency to ignore them and order that they be removed from the
record.
[61]
For these reasons, I would dismiss the appeal
with costs.
"Eleanor R. Dawson"