2. Legal and regulatory framework

As a federal agency, the CTA is responsible for administering acts and regulations, and for implementing government-wide regulatory initiatives. The Canada Transportation Act (the Act) is the CTA’s enabling legislation.

Other legislation

The CTA has specific powers under other statutes that regulate transportation, including:

Like any federal government body, the CTA also has powers and duties under the acts and related instruments governing privacy, access to information, official languages, financial administration, and the public service (employment, disclosure protection).

Regulations and other instruments

The CTA makes its own binding and enforceable regulations, which are subject to GIC approval. It also has the power to make rules of proceeding and guidelines that explain CTA powers and how they are exercised to stakeholders and the public.

2.1 Canada Transportation Act

Sections 7 to 42 of the Canada Transportation Act (the Act) create and organize the CTA, grant it its legislative authority, define its structure, and outline its powers and functions. The Act also includes the National Transportation Policy (section 5), which serves as the foundational guide for the CTA, in accordance with which it advances its mandate. Section 5 is included in full below.

National Transportation Policy

Declaration

5 It is declared that a competitive, economic and efficient national transportation system that meets the highest practicable safety and security standards and contributes to a sustainable environment and makes the best use of all modes of transportation at the lowest total cost is essential to serve the needs of its users, advance the well-being of Canadians and enable competitiveness and economic growth in both urban and rural areas throughout Canada. Those objectives are most likely to be achieved when

  • (a) competition and market forces, both within and among the various modes of transportation, are the prime agents in providing viable and effective transportation services;
  • (b) regulation and strategic public intervention are used to achieve economic, safety, security, environmental or social outcomes that cannot be achieved satisfactorily by competition and market forces and do not unduly favour, or reduce the inherent advantages of, any particular mode of transportation;
  • (c) rates and conditions do not constitute an undue obstacle to the movement of traffic within Canada or to the export of goods from Canada;
  • (d) the transportation system is accessible without undue obstacle to the mobility of all persons;
  • (d.1) the transportation system is accessible without barriers to persons with disabilities; and
  • (e) governments and the private sector work together for an integrated transportation system.

Key sections of the Act

The Act also:

  • allows and specifies the appointment of Members and allows the hiring of staff;
  • grants the CTA powers over specific rail, air and accessibility matters; and
  • grants the CTA general powers that apply to cases brought to it under the Act and under certain other acts giving the CTA decision-making powers.

Key sections of the Act that are most relevant to, or used by, the CTA are identified on the following page. Collectively, these sections are the source of the CTA’s authority to:

  • choose its own procedures for all matters in its jurisdiction. This includes making, varying, and dispensing with its own rules and enjoying the powers of a superior court;
  • make regulations regarding specific air, rail, and accessibility matters, with the approval of the Governor in Council (GIC);
  • issue regulatory authorizations that carriers need to launch services or carry out certain work (for example, to start a railway company or construct a new railway line);
  • resolve disputes in a wide range of transportation-related areas;
  • craft and issue decisions (including any conditions to be met) and orders (including orders for remedies in response to certain rail, air, and accessibility complaints and orders exempting people or groups from certain legal requirements);
  • enforce its decisions, orders, and regulations through its general powers as well as its powers to suspend or cancel its authorizations (such as air licenses), issue Notices of Violation, and apply Administrative Monetary Penalties for violations; and
  • carry out own motion inquiries or investigations into certain rail, air, and accessibility matters

Annex A to section 2 – Key sections of the Act

This annex explains and links to the sections of the Canada Transportation Act (Act) most relevant to, and used by, the CTA.

Master of own procedure

The CTA has the power, both by common law and by the Act, to choose its own procedures regarding all matters within its jurisdiction. This is reflected in:

Regulation making powers

The CTA has the power to, with the approval of the Governor in Council, make its own regulations with respect to certain specified matters, including:

  • Air transportation [86 of the Act]
  • Advertising for air services [86.1(1) of the Act]
  • Air passenger protection [86.11(1) of the Act]
  • Liability insurance coverage requirements for railways [92(3) of the Act]
  • Railway interswitching [128(1) of the Act]
  • Accessibility for persons with disabilities [170(1) of the Act]
  • Accessibility plans, feedback processes, and progress reports [63(1) of the Accessible Canada Act (ACA)]

Powers to issue regulatory authorizations

  • Domestic and international air licences [61, 69 and 73 of the Act],
  • International air charter permits [75.1 of the Act and Part III of the Air Transportation Regulations]
  • Railway certificates of fitness [92 of the Act]
  • Approval for the construction of a railway line [98 of the Act]
  • Determination of availability and suitability of a Canadian vessel to perform coasting trade activities as part of the coasting trade licensing process [8(1) of the Coasting Trade Act]

Dispute resolution powers

The CTA has the authority to adjudicate certain transportation-related complaints and applications, such as:

  • Air travel complaints – failure to apply tariffs [113.1 of the Air Transportation Regulations]
  • Reasonableness of air carrier tariff [67.2 of the Act and 111 of the Air Transportation Regulations]
  • Railway noise and vibration [95.3 of the Act]
  • Construction and maintenance of road, utility and private rail crossings [101-103 of the Act]
  • Rail level of service obligations [116 of the Act]
  • Reasonableness of railway charges [120.1 of the Act]
  • Railway interswitching [127 of the Act]
  • Long-haul interswitching [134 of the Act]
  • Accessibility for persons with disabilities in the federal transportation system [172 of the Act]
  • Loss arising out of contravention of accessibility related regulations [172.1 of the Act]
  • Pilotage charge [34(1) of the Pilotage Act]
  • Air navigation services charge [42 of the Civil Air Navigation Services Commercialization Act]
  • Security screening services charge [31 of the Security Screening Services Commercialization Act]

CTA decisions and orders

The CTA has broad powers in the crafting of decisions and orders.

  • Power to grant an application in whole or in part and to make any further or other relief the Agency considers appropriate [27(1) of the Act].
  • Power to make conditional orders that may come into force at a future time [28(1)(a) of the Act] on the happening of any contingency, event or condition [28(1)(b) of the Act]
  • When conditions imposed by the Agency have been met, to the satisfaction of the Agency or a person named by it [28(1)(c) of the Act]
  • Power to make interim orders [28(2) of the Act]

Powers with respect to remedies

The CTA may only order remedies authorized by statute, which may be very broad, for instance:

Rail level of service complaints

  • Power to order that specific works be constructed or carried out, or that property be acquired [116(4)(a)(i) and (ii) of the Act]
  • Power to order compensation for expenses incurred as a result of the company’s failure to fulfil its service obligations [116(4)(c.1) of the Act]

Air travel complaints

Powers to order compensation for expenses [67.1 of the Act and 113.1 of the ATR]

Accessibility complaints

  • Power to order compensation for loss of wages, pain and suffering and compensation in situations of willful or reckless practice [172(2) of the Act]

Exemption powers

The CTA has powers to make orders which exempt certain persons or groups from certain legal requirements:

Air transportation

  • Power to exempt by order a carrier from a requirement of Part II of the Act (Air Transportation) or a regulation or an order made under that part [80 of the Act]

Accessibility

  • Power to exempt by order, with the approval of the Governor in Council, a transportation service provider from a requirement of an Agency accessibility regulation [170(3) of the Act]
  • Power to exempt by order, after consultation with the Minister of Transport, a transportation service provider from a requirement of an Agency accessibility regulation for no more than 3 years, if the person has taken or will take measures at least equivalent to the regulations [170(4) of the Act]
  • Power to exempt by order, with the approval of the Minister of Transport, a transportation service provider from a requirement of regulations made under the Accessible Canada Act for no more than 3 years [64(1) of the Accessible Canada Act]

Own motion powers

The CTA has authority to initiate, on its own motion (without a complaint or an application), inquiries and investigations into certain matters.

  • Rail level of service [116(1.11) of the Act]
  • Accessibility matters [172.3 of the Act]
  • Reasonableness of international air tariff provisions [111 of the Air Transportation Regulations (ATR)]
  • General own-motion power to inquire whether a person should be required to do or refrain from doing anything required or prohibited under any statute administered by the Agency [26 of the Act]

Enforcement - General powers

The CTA has various compliance monitoring and enforcement tools it can use depending on the specific requirement being contravened.

  • Powers of a superior court, including the enforcement of its orders or regulations and the entry on and inspection of property [25 of the Act]
  • Injunctive powers [26 of the Act]
  • Power to enforce a decision or order by its own action [33(4) of the Act]
  • Power to file a decision or order with the Federal Court, making the order enforceable as an order of that court [33(1) of the Act]

Enforcement – Suspension or cancellation of authorizations

The CTA may ensure compliance with legal requirements by suspending or cancelling regulatory authorizations it has issued:

  • Suspension or cancellation of domestic and international air licences [63, 72 and 75 of the Act]
  • Suspension or cancellation of railway certificate of fitness for non-compliance with liability insurance coverage requirements [94.2 of the Act]

Enforcement – Administrative monetary penalties

The CTA administers an Administrative Monetary Penalty (AMP) regime, under which CTA designated enforcement officers (DEOs) may issue notices of violation (NoV) for the contravention of certain legal requirements [177(1) to 181.2 of the Act].

Penalty amounts can be up to a maximum of:

  • $5 000 for an individual
  • $25 000 for a corporation
  • $100 000 for the contravention of certain rail liability coverage requirements
  • $250 000 for the contravention of certain requirements of the Accessible Canada Act or the CTA’s accessibility regulations

Enforcement – Review of NoVs

  • NoVs containing a penalty may be challenged by way of a request for review to the Transportation Appeal Tribunal of Canada. [180.1(1) of the Act]
  • NoVs containing a warning (accessibility related contraventions) may be reviewed by the CTA [180.1(2) of the Act]
  • Persons served with an NoV containing a penalty (accessibility related contraventions) may request to enter into a compliance agreement with the CTA [180.1(3)(c) of the Act]

Review, variation and appeal of CTA decisions

The Act provides for the following mechanisms to challenge decisions of the CTA:

  • Decisions and orders may be reviewed, varied or rescinded by the Agency if there has been a change in the facts or circumstances that warrants it [32 of the Act]
  • Decision, order, rule or regulation may be varied or rescinded by the Governor in Council, either on its own motion or upon petition [40 of the Act]
  • Decision, order, rule or regulation, may be appealed, with leave, to the Federal Court of Appeal on a question of law or a question of jurisdiction [41 of the Act]

2.2 CTA regulations

The CTA developed, and currently administers, the following regulations under the Act. Specific regulations are described in detail below.

Rail regulations

The CTA currently administers the following rail regulations:

Railway Costing Regulations

The regulations set out rules for determining railway variable costs. The CTA applies the rules when considering cost submissions filed by federally regulated railways.

Railway Interswitching Regulations

These regulations set out terms and conditions for interswitching (the mandatory transfer of traffic from one freight railway company to another at a point – interchange – where their two lines meet). These interswitching rates are set yearly by the CTA.

Railway Traffic Liability Regulations

These regulations identify the extent to which a railway company’s liability for its traffic may be limited or restricted. They set out related terms and conditions, which may address, among other issues, stopping in transit, routing, dangerous goods, and goods of extraordinary value.

Railway Traffic and Passenger Tariffs Regulations

These regulations set out the information federal railway companies must include in their traffic or passenger tariffs. This includes, but is not limited to, information related to rates, categories of traffic or passengers, and points of origin and destination for traffic or passengers.

Regulations on Operational Terms for Rail Level Services Arbitration

These regulations support the arbitration service available to shippers and railways if they fail to reach a formal agreement on the level of service the railway should provide. Specifically, the regulations provide a framework for understanding the “operational terms” (matters) that are eligible for arbitration.

Railway Third Party Liability Insurance Coverage Regulations

To build or operate a railway, companies require a Certificate of Fitness (operating license) from the CTA. In keeping with the Act, the CTA will provide the certificate if it is satisfied that the company has adequate liability insurance for the proposed construction activities/operations. This includes coverage for third-party or passenger injuries and deaths, some third-party property damage, and some types of pollution.

Air and air consumer protection regulations

The CTA currently administers the following air and air consumer protection regulations:

Air Transportation Regulations (ATR)

The ATR give effect to the economic regulation of the air industry in Canada and sets out criteria that passenger and cargo air carriers must meet in a variety of areas. These include domestic and international licences (issuing, amending, renewing); operating transborder and international charters; the information to include in their tariffs and filing requirements; the form and content of the service schedules they must file with the CTA; and terms and conditions of carriage of persons with a disability.

Air Passenger Protection Regulations (APPR)

The APPR provide a comprehensive and consistent set of air passenger rights by defining minimum airline requirements and obligations toward passengers. The goal of the APPR is to ensure that when a flight disruption occurs passengers:

  1. Receive timely, clear and useful information to ensure they are aware of their rights and are kept informed during a flight disruption;
  2. Arrive at their destination (or receive a refund);
  3. Receive appropriate assistance (also known as standards of treatment, which includes food, drink, access to a means of communication, and overnight accommodations if necessary); and
  4. Receive compensation for the inconvenience they experience (when entitled).

In 2023, Parliament passed legislation modifying the Act to clarify, simplify, and strengthen the air passenger protection regime. The APPR must be amended to reflect these modifications to the Act.

The 2026 Spring Economic Update outlined the government’s intention to make further changes to Canada’s air passenger rights regime. The Minister of Transport announced that the government will:

  • Eliminate the backlog of air passenger complaints by engaging a neutral, third-party dispute resolution organization;
  • Increase the CTA’s enforcement powers by allowing fines for systemic violations of the APPR to be issued for up to $1M; and
  • Develop a more effective regulatory regime (with responsibility for regulation-making in this area transferred from the CTA to the Minister).

Tabled on May 2, 2026, Bill C-31 proposes amendments to the Act to implement these changes.

Canadian Transportation Agency Designated Provisions Regulations (DPR or the Regulations)

The DPR is the key instrument that identifies all the legislative and regulatory provisions for which the CTA can issue an administrative monetary penalty (AMP) in situations of non-compliance, where necessary. It applies equally to domestic and international individuals and corporations, for the contravention of any designated provision. Whenever the Act or other regulations are amended, the DPR must also be updated to ensure that the CTA has, or continues to have, effective tools to verify that regulated entities comply with the law.

As a result of the changes that were brought to the Act in 2023, many statutory requirements were added. However, as they have not yet been designated in the DPR, they cannot be enforced through AMPs. In January 2025, the CTA provided advance notice to regulated entities and the public of its intention to amend the DPR.

Accessibility Transportation Regulations

The CTA currently administers the following accessibility regulations:

Accessible Transportation Planning and Reporting Regulations (ATPRR)

These regulations were created under the authority of the Accessible Canada Act (ACA). The purpose of the ACA is to make Canada barrier-free by January 1, 2040. The ACA sets out planning and reporting requirements to identify and remove barriers and prevent new barriers in priority areas such as communication, services and equipment.

The ACA requires transportation service providers (TSPs) operating in the national transportation network to develop accessibility plans, establish a feedback process, and prepare and publish progress reports. TSPs include companies that operate planes, ferries, trains and buses that travel long distances, as well as terminals.

The ATPRR provides the details of how to implement the accessibility planning and reporting requirements for TSPs, including who is captured by the regulations, when and how TSPs must publish their accessibility plans and progress reports, and what information needs to be contained in them. These obligations are enforceable by administrative monetary penalties.

Accessible Transportation for Persons with Disabilities Regulations (ATPDR)

In 2019, the CTA consolidated six voluntary codes and two regulations into a single, new, robust ATPDR. These support the CTA's mandate to protect the human right of persons with disabilities to an accessible transportation network. The ATPDR help to achieve this by providing comprehensive, legally binding requirements across all modes under CTA jurisdiction.

Currently, the ATPDR cover large air carriers and interprovincial/international passenger rail, bus, and ferry services. Some provisions also apply to the Canada Border Services Agency and the Canadian Air Transport Security Authority. The regulations set out specific obligations related to services for passengers with disabilities:

  • Communications
  • Terminals (relevant airports, railway and bus stations, and ferry and cruise terminals)
  • Fleets and equipment (technical requirements only)
  • Training for carrier and other personnel
  • Security screening and border clearance

Requirements in the ATPDR are enforceable by administrative monetary penalties.

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