Decision No. 7-C-A-2018

January 30, 2018

APPLICATION by Lynne Faught against Air Canada carrying on business as Air Canada Rouge and as Air Canada Cargo (Air Canada).

Case number: 
17-05080

SUMMARY

[1] Lynne Faught filed an application with the Canadian Transportation Agency (Agency) against Air Canada with respect to her lost baggage. Ms. Faught filed with Air Canada a completed Interim Expense Claim Form, Airline Baggage Identification Chart, and Itemized List and Description of Bags and Contents Form. In her application, Ms. Faught listed the items contained in her baggage along with the cost associated with each, which total $2,945.

[2] Air Canada issued a cheque to Ms. Faught in the amount of $1,500. Ms. Faught is seeking an additional $1,895 from Air Canada for the items purchased during the period that she was without her baggage, as well as for the cost of her lost baggage and the value of the lost items.

[3] Rule 230(A)(1) of Air Canada’s Domestic Tariff (Tariff) sets out its liability with respect to the loss of, damage to, or delay in the delivery of the baggage, and states that “[l]iability for […] baggage or other personal property shall not be more than 1,500 dollars per passenger unless a higher value is declared…”.

[4] In Decision No. LET-C-A-82-2017, the Agency, pursuant to subsection 42(2) of the Canadian Transportation Agency Rules (Dispute Proceedings and Certain Rules Applicable to All Proceedings), SOR/2014-104 (Dispute Adjudication Rules), stated that it was of the preliminary opinion that the application contained a “fundamental defect” on the basis that the application did not claim or establish that:

  • Air Canada failed to apply the terms and conditions in its domestic tariff, or that Air Canada applied terms and conditions not set out in its domestic tariff; or
  • The terms and conditions in Air Canada’s domestic tariff are unreasonable or unduly discriminatory.

[5] As a result, the Agency provided Ms. Faught with an opportunity to justify why the Agency should not dismiss the application.

[6] Ms. Faught did not file a response to Decision No. LET-C-A-82-2017.

[7] The Agency will address the following issue:

Has Ms. Faught justified why the Agency should not dismiss her application?

[8] For the reasons set out below, the Agency finds that Ms. Faught has not provided justification as to why the Agency should not dismiss her application; therefore, her application is dismissed.

BACKGROUND

[9] Ms. Faught travelled with Air Canada on March 23, 2017 from Moncton, New Brunswick to Toronto, Ontario and when she arrived in Toronto she realized that her baggage did not arrive on the same flight. Ms. Faught informed Air Canada about her missing baggage and she claims that Air Canada told her that it would provide her with an interim allowance of $100 for every 24 hours while she was without her baggage, up to a maximum of $300. Ms. Faught claims that Air Canada also informed her that if it was unable to locate the baggage within five days, it would reimburse her for the full value of the items in the baggage.

THE LAW

[10] Subsection 67(3) of the Canada Transportation Act, S.C., 1996, c. 10, as amended  requires that the holder of a domestic licence apply the terms and conditions of carriage set out in its tariff.

[11] If the Agency finds that an air carrier has failed to properly apply its tariff, section 67.1 of the  Canada Transportation Act empowers the Agency to direct the carrier to:

  1. apply a fare, rate, charge or term or condition of carriage that is set out in its tariffs;
  2. compensate any person adversely affected for any expenses they incurred as a result of the licensee’s failure to apply a fare, rate, charge or term or condition of carriage that was set out in its tariffs; and
  3. take any other appropriate corrective measures.

[12] Rule 230(A)(1) of the Tariff outlines Air Canada’s liability related to lost baggage, and states:

(Applicable for transportation solely within Canada only and not in conjunction with any international travel.) Liability for the loss of, damage to, or the delay in delivery of, baggage or other personal property shall not be more than 1.500 dollars per passenger unless a higher value is declared in advance and charges are paid pursuant to Carrier’s regulations as defined in paragraph (C). In such a case, the liability of the Carrier shall be limited to such higher declared value. In no case shall the Carrier’s liability exceed the actual loss suffered by the passenger. All claims are subject to proof of amount of loss. These limitations shall also apply to baggage or other personal property (as previously defined in Rule 195) accepted by the Carrier for temporary storage at a city or airport office or elsewhere before or after the passengers trip.

ANALYSIS AND FINDINGS

[13] In Decision No. LET-C-A-82-2017, the Agency specifically identified certain deficiencies associated with the application and provided Ms. Faught with an opportunity to clarify the specific nature of her claim and how it relates to the mandate and jurisdiction of the Agency and the legal obligations of Air Canada.

[14] The Agency notes that on May 24, 2017, Air Canada issued a cheque to Ms. Faught for $1,500, the maximum amount for which it is liable for the loss of Ms. Faught’s baggage.

[15] Ms. Faught, in not responding to Decision No. LET-C-A-82-2017, has not provided any further evidence that would establish how Air Canada failed to properly apply its Tariff. Accordingly, the application cannot succeed. Therefore, the Agency finds that Ms. Faught has failed to justify why the Agency should not dismiss the application.

CONCLUSION

[16] The Agency dismisses the application.

Member(s)

William G. McMurray
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