By Robb M. Stewart
Air Canada is testing an alternative process for resolving compensation claims from passengers using a third party in an effort to avoid long waits.
The flag carrier said Wednesday it is randomly selecting 500 customers who will be invited to transfer information from outstanding claims with the federal Canadian Transportation Agency to an independent and impartial provider.
The arbitrator will decide on those claims within 90 days of receiving all the information from both sides. Decisions will be binding on the airline but not on passengers unless they accept them.
Air Canada said that following the pilot, it will evaluate the results and then consult with the government on possible next steps. There will be no cost to participate in the pilot and no impact on a customer's claims before the Canadian Transportation Agency, it said.
The airline said it is proposing that Canada adopt an independent alternative dispute-resolution process that is widely used in Europe to resolve disputes over travel disruptions. Based on experience elsewhere, the process is expected to deliver a fast, impartial, and reasoned response to claims.
"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 Air Canada Chief Legal Officer Marc Barbeau.
News of the trial comes roughly a week after Chief Executive Michael Rousseau informed the airline's board that he plans to retire at the end of the third quarter. The move came amid intense backlash over his handling of a crash at LaGuardia Airport that killed the two pilots of an Air Canada Express flight and injured dozens of passengers.
Air Canada said it has consulted with Transport Canada and the Canadian Transportation Agency on the design of the pilot project. It has selected Canada Aviation Dispute Resolution, a subsidiary of not-for-profit firm CDRL Group that specializes in resolving air travel complaints.
Write to Robb M. Stewart at robb.stewart@wsj.com
(END) Dow Jones Newswires
April 08, 2026 07:04 ET (11:04 GMT)
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