Air Canada is testing a new program to address customer complaints. Will this work?
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Air Canada is testing a new dispute resolution process to resolve passenger complaints.
The airline will ask 500 randomly selected passengers whose claims are pending in the Canadian Transportation Agency (CTA) dispute process if they would voluntarily transfer their claim to a third-party arbitrator.
Marc Barbeau, Air Canada’s chief legal officer, said the goal of the pilot program is to resolve customer complaints in a “fast, efficient, but most importantly fair and equitable” manner.
CTA has a backlog of approx. 95,000 complaints – an amount from which the balloon is taken 42,000 in 2023 That’s when extra funding was announced to help clear the queue. The analysis showed The complaint process can drag on for two to three years.
The pilot project is funded by Air Canada, although the company said Transport Canada and the Canadian Transportation Agency were consulted about the program’s design.
The trial arbitration process will be run by a subsidiary of UK-based CDRL Group – a non-profit that provides dispute resolution services in the UK and Europe, where Barbeau says such a process is more common.
“The hope is to find a solution … that has had good results elsewhere and we think can have some good results in Canada as well,” Barbeau said.
To speed up the long compensation claim waiting period, Air Canada is now testing a system using a third-party arbitrator to settle each case within 90 days. But some critics worry that the arbitrator will often rule in the airline’s favor.
Under the testing program, Air Canada says a decision will be made on each case within 90 days after receiving all information from the airline and customer.
This decision will be binding on Air Canada, but not on consumers – during the pilot, if they are not happy they can reject the arbitrator’s results and proceed with the normal CTA process without losing their place in the queue, the CTA told CBC News in an email.
Will this help?
Airline passenger Andrew Giblon says a better system is needed — he filed a claim with Air Canada two months ago related to the issue and says he hasn’t heard anything since.
“…that backlog of cases is real. And I don’t think they’re taking care of it very well,” Giblon told CBC News.
But he’s not sure the pilot project will help much — especially since the intermediary has poor reviews on consumer review site Trustpilot.
Giblon said, “In theory, it’s a good idea. But in practice, it has to be done by a neutral body that is accepted by both sides. And from what I’ve read, it’s been accepted by Air Canada, but it hasn’t been accepted by the public.”
Ian Jack, spokesman for the Canadian Automobile Association, which provides travel services including flight booking, says caution needs to be taken to ensure the old system is not replaced with a new system with many of the same problems. He says that if the airlines themselves are going to appoint arbitrators as a permanent part of the system, oversight will be needed to ensure that the airlines do not win the majority of cases.
Jack said, “We don’t want the fox in charge of the chicken coop here. If the carriers are going to pay for a third-party judgment on you as a consumer, the government needs to make sure the system is honest and fair and that consumers have a fair chance to win.”
He adds that consumers in Europe also sometimes sell their claims to competing companies, which is “unacceptable” and needs to be avoided here.
Whether a government body or third party is in charge of the complaints process, Jack says data showing how often airlines win and how often customers win should be made public.
“That would be the only way anyone in the public would be able to believe that the system is working properly,” Jack said.
WestJet refused to compensate the passenger, citing “safety” as the reason for canceling his flight. But records show the airline diverted the plane to another route just eight minutes before the cancellation was announced. Now, the passenger is taking WestJet to court.
According to the company, under the current complaint system, about 75 percent of the decisions are in favor of Air Canada.
Still, Carl Moore, an airline expert and associate professor at McGill University’s Desautels Faculty of Management, says the program is a “good idea” from Air Canada that reflects an effort to improve the complaint process for consumers.
He says the fact that the CTA knows about the program gives him a “greater sense of confidence” that the pilot can make a difference.
The process also will not require customers to sign non-disclosure agreements – unlike the regulator’s process which prevents customers and airlines from publicly disclosing the outcome of complaints on matters ranging from lost luggage to compensation for canceled flights unless both parties agree to give up confidentiality. Moore says the change could increase transparency, as it would allow consumers to speak out if they are not satisfied with the results of the pilot.
Air Canada expects the pilot project to be completed sometime in the summer. After that, Barbeau says the airline will share its findings from the pilot with the government and consult on possible next steps.
