Data: Standing Senate Committee on Transport and Communications (May 16, 2023)

CTA Complaints

Volumes:

The CTA continues to receive a record number of travel complaints – over 42,000 in the last fiscal year (2022-23). This is almost 6 times as much as five years ago (7650 received).

• This includes almost 15,000 complaints received in the last 3 months of the fiscal year (January – March).

We currently have over 47,000 active air travel complaints, and we suspect that this will grow into the summer travel season. 90% of our active cases have been received since April 1, 2022, 9% were from the FY 2021-22, 1% from FY 2020-21.

Efficiencies:

Despite the continued high volumes, we have been able to find efficiencies to improve our processes:

• In adjudication, once pleadings are opened, cases are getting resolved more quickly. 70% of our cases are being issued within our service standard of 85 days this year, which is a significant improvement over last year (50%).
  • In fact, this year, our average processing time is 79 business days, compared to 103 business days last year.

• While facilitation wait times continue to be long, once a facilitator is assigned to the case, the process takes an average of 20 business days. We've made several improvements to reduce incomplete applications and streamline the process and we're pleased to see that this year we are on track to facilitate 2,500 more cases than last year.
  • In fact, overall we are on track to process about 11,000 cases in 2022-23, when five years ago, we were processing 5,000. There will be variation in the volume of cases that we can process year to year, depending on complexity and resource levels. While we were able to process about 15,000 cases in 2021-22, the cases processed this year were somewhat more complex.

Background Statistics – Complaints received

Background Statistics - Complaints Processed

Background Statistics - Service Standards:

CTA's Issuance of NOVs with AMPS: April 1, 2022 to March 24, 2023 Comparison with Other Government Regulators

• From April 2022 to March 24, 2023, the CTA (with 355 employees as of March 2021 and 7 DEOs) issued 32 NoVs with an AMP for a total amount of $722,880.
• In comparing the CTA with other regulators with similar employee size:
  • Financial Transactions and Reports Analysis Centre of Canada (401 employees as of March 2021) issued 12 NoVs with an AMP for a total amount of $2,621,932.50.
  • Canadian Radio-television and Telecommunications Commission (541 employees as of March 2021) issued 14 NoVs with an AMP for a total of $575,977.98.
  • Canada Energy Regulator (553 employees as of March 2021) issued 3 NoVs with an AMP for a total amount of $168,000.
• In comparing the CTA with other regulators with larger employee size:
  • Canadian Nuclear Safety Commission (862 employees as of March 2021) issued 1 NoV with an AMP of $24,760.
  • Canadian Food Inspection Agency (6,539 employees as of March 2021) issued 143 NoVs with an AMP for a total amount of $1,339,100.
  • Health Canada (Pest Control Products) (9,204 employees as of March 2021) issued 4 NoVs with an AMP for a total amount of $60,000.
  • Transport Canada (6,339 employees as of March 2021)
    • Civil Aviation for non-corporate issued 50 AMPs for a total amount of $94,590.75.
    • Civil Aviation for corporate issued 28 AMPs for a total amount of $695,720.
    • Marine Safety and Security for non-corporate issued 27 AMPs for a total amount of $116,613.50.
    • Marine Safety and Security for corporate issued 3 AMPs for a total amount of $71,000.
    • Rail Safety issued 15 AMPs for a total amount of $1,677,743.

Sources

CTA:

Enforcement actions taken by the CTA’s enforcement officers | Canadian Transportation Agency (otc-cta.gc.ca)

FINTRAC:

Public notice of administrative monetary penalties (canada.ca)

CRTC:

Enforcement actions | CRTC

Canada Energy Regulator

CER – Reports on Compliance and Enforcement (cer-rec.gc.ca)

Canadian Nuclear Safety Commission:

Regulatory actions - Canadian Nuclear Safety Commission

Canadian Food Inspection Agency:

Administrative Monetary Penalties (AMPs) - Canadian Food Inspection Agency (canada.ca)

Health Canada:

Enforcement Bulletins - Canada.ca

Transport Canada:
Civil Aviation:

Aviation offences and enforcement (canada.ca)

Marine Safety and Security Enforcement:

Administrative Enforcement Action Summaries (canada.ca)

Railway Administrative Monetary Penalties:

Railway Administrative Monetary Penalties (canada.ca)

Statement on Compliance and Enforcement Statistics

APPR Enforcement Statistics

• The following table provides an overview of the notices of violation and related administrative monetary penalties issued in respect of the APPR since its coming into force:

Overview

• DEOs conduct compliance verification and monitoring activities to confirm whether subject entities are meeting their regulatory obligations. When they identify non-compliance they draw on a range of available enforcement tools to ensure compliance by regulated parties. Their work is aligned with the Agency’s Compliance and Enforcement Policy.
• Their oversight activities encompass the Agency’s three mandates: consumer protection, accessibility and efficient transportation, and a broad regulatory portfolio, including the Canada Transportation Act, the APPR and ATPDR
• The following table provides an overview of the oversight activities that have been undertaken since 2019 (not limited to APPR):

Activity Descriptions:

• Carrier Inspections verify carrier compliance at their places of business
• Facility Inspections verify terminal operator compliance within the terminal
• Carrier monitoring at terminals verify the compliance of carriers at terminals
• Website monitoring proactively monitors entity websites to verify compliance
• Targeted verifications assess specific, potential non-compliances
• Targeted investigations are conducteed when there are reasonable grounds to believe a contravertion has occured
• Follow-up on Agency Orders ensures that entities fulfill the obligations set out in Agency Orders
• Since 2019, DEOs have taken the following enforcement actions related to violations that have been identified during their inspections and investigations (not limited to APPR):

Analysis of Compliance Statistics – By Mandate

Consumer Protection

2022-23

• The Agency performed a series of compliance verifications in response to winter 2022 flight disruptions, including monitoring to ensure that compensation due to passengers was paid by the carriers
• The Agency conducted blitzes monitoring information and assistance provided to passengers in response to delayed and cancelled flights at the three Canadian airports that had the highest rates of flight disruptions during the summer and winter periods: Montreal, Toronto and Vancouver.
• The Agency analyzed flight data provided by select Canadian air carriers and complaints received by the Agency to inform investigations into air carrier categorization of flight disruptions and their related compensation obligations.

2021-22

• The Agency conducted 19 virtual inspections of Canadian carriers' domestic tariffs to ensure compliance, resulting in 5 cautionary notices ^{Footnote 1}.
• The APPR includes air price advertising requirements. These requirements allow consumers to determine the total price of advertised air services easily. In the Agency's work, it:
  • monitored the advertised air prices of 28 air carriers (and travel agencies),
  • issued 22 cautionary notices, and
  • issued three NoVs with penalties.

2020-21

• The CTA monitored compliance by Canadian and foreign airlines with the APPR. We issued 33 cautionary notices for potential non-compliance with APPR communication provisions. All cautionary notices were addressed by the airlines.
• We monitored the advertised air prices of 22 foreign air carriers.

2019-20

• The CTA's enforcement officers conducted compliance verifications at airports across the country and involving a tarmac delay at the Rome—Fiumicino Leonardo da Vinci International Airport. These activities led to findings of violations for failure to display notices of passenger rights at airports and failure to provide certain standards of treatment during a tarmac delay, resulting in the issuance of 9 notices of violations with administrative monetary penalties totaling $60,000.
• The Agency’s enforcement officers also issued cautionary notices for alleged non-compliance with certain communications requirements during flight delays.

Accessible transportation

2022-23

• The Agency levied a total of 4 notices of violation in respect of 12 violations, for a total of $146,000 in administrative monetary penalties to TSPs for various violations of the ATPDR that had previously been brought to the attention of the TSPs but had not been addressed.
• During the year, the Agency conducted investigations into several accessibility-related incidents reported in the media. We take these incidents very seriously and investigate all incidents where there is a potential non-compliance, and where warranted, we take appropriate action.
• Additionally, the Agency launched a four-part compliance promotion initiative to provide guidance and compliance self-assessment tools to assist TSPs in understanding their obligations and assessing their compliance with the regulations. Compliance promotion material related to the Training obligations was sent to TSPs in late-2023, information related to the remaining obligation areas will be sent in the 2023/24 fiscal year.

2021-22

• The Agency has initiated over 40 inspections to verify compliance with the ATPDR, supported by self-reporting questionnaires, and followed by virtual and on-site meetings. Where deficiencies were detected, compliance plans were developed which detailed how, and by when, the TSPs were expected to be in full compliance with the applicable requirements. The Agency is working with TSPs to ensure that they achieve compliance in 2022.
• The Agency also entered into its first compliance agreement with a transportation service provider.

2020-21

• The majority of the new ATPDR provisions came into force on June 25, 2020. The Agency moved quickly to:
  • verify compliance by regulated entities;
  • monitor the websites of regulated entities;
  • conduct targeted outreach to regulated entities to ensure compliance with the new communications requirements.
  • The Agency issued four notices of violations, two with penalties totaling $28,000 for non-compliances with the Personnel Training for the ATPDR.

2019-20

• No enforcement actions were issued that year but inspections were performed at various airports in the country on whether airports were complying with the Personnel Training for the Assistance of Persons with Disabilities Regulations in February 2020 which resulted in notices of violation being issued in the fiscal year 2020/21.

Efficient Transportation - Rail and Air Transportation

2021-22

• The Agency investigated Skyservice Business Aviation Inc. for operating international passenger charters without obtaining the required charter permits. This resulted in the issuance of an NoV with administrative monetary penalty.
• The Agency is actively monitoring compliance with section 136.9 of the Act. This requires railway companies to publish a list of interchange locations. The Agency conducted 20 virtual inspections of federally regulated railway companies to ensure that the interchange lists were accurate and current. Nine railway companies have since been brought into compliance.
• The Agency conducted two investigations to verify compliance by Canadian National Railway (CN) and Canadian Pacific Railway (CP) with the interswitching regulated rate under subsection 127(3) of the Act. These were for interswitching at the St-Luc interchange (Montreal) and destination facilities located on the south shore of Montreal. The Agency issued notices of violations and administrative monetary penalties to CN and CP.

2020-21

• Our enforcement officers investigated air carriers suspected of operating without a license or necessary charter permits. These investigations resulted in the issuing of four notices of violation with penalties totaling $26,500.

2019-20

• Agency issued a Notice of Violation with an administrative monetary penalty of $5,000 to an air carrier for operating international passenger charters without obtaining the required charter permits.
• Regulations Amending Certain Regulations Made Under the Canada Transportation Act (Rail Transport): SOR/2019-254 came into force on June 25, 2019. The coming into force of the these regulations, ensured that rail provisions under the Canada Transportation Act, Railway Interswitching Regulations, and Railway Third Party Liability Insurance Coverage Regulations could be enforceable by administrative monetary penalties.

Follow up on Agency orders and decisions

2022-23

• In 2022-23, the Agency verified compliance with 48 orders by following up with passengers and transportation service providers, including:
  • air passengers receiving compensation and refunds, as ordered by the Agency;
  • air carriers amending their tariffs to ensure transparency with passengers about their terms and conditions;
  • confirming that transportation service providers developed or amended their policies to address the removal of barriers for persons with disabilities.

2021-22

• The Agency verified compliance with 36 orders by following up with passengers and transportation service providers, including:
  • collaborating with other government agencies to ensure CN complies with the conditions of the Milton logistics hub approval;
  • air passengers receiving compensation and refunds, as ordered by the Agency;
  • air carriers amending their tariffs to ensure transparency with passengers about their terms and conditions;
  • ensuring transportation service providers communicate with their employees about existing and new transportation policies that allow persons with disabilities to better access air travel; and
  • confirming that transportation service providers developed or amended their policies to address the removal of barriers for persons with disabilities.

2020-21

• The Agency verified compliance with 44 CTA orders. These included:
  • ensuring passengers were provided compensation and reimbursements;
  • confirming air carriers amended their tariff as ordered;
  • verifying that regulated entities communicated with their employees about existing and new policies on accessibility that affect air and rail passengers;
  • confirming regulated entity policies respecting the removal of barriers for persons with disabilities were developed or amended; and,
  • receiving and analyzing reports as ordered that outline a regulated entity’s continuing compliance efforts.

2019-20

• The Agency verified compliance with 42 CTA orders. These included:
  • ensuring passengers were provided compensation and reimbursements;
  • confirming air carriers amended their tariff as ordered;
  • verifying that regulated entities communicated with their employees about existing and new policies on accessibility that affect air and rail passengers;
  • confirming regulated entity policies respecting the removal of barriers for persons with disabilities were developed or amended; and,
  • receiving and analyzing reports as ordered that outline a regulated entity’s continuing compliance efforts.

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