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Air Canada has successfully overturned a Canadian Transportation Agency (CTA) decision requiring the airline to pay a passenger $2,079 for baggage delays.
After an 11-month trial brought by Air Canada, Federal Court Judge Michael Manson ruled that the CTA officer's 2024 decision was unreasonable. The case has been sent back to the CTA, Canada's transportation regulator, for a new officer to review the compensation claim.
The case began with Alaa Tannous and his wife Nancy's 2022 flight from their hometown of Toronto to Vancouver. Their checked luggage arrived the next day after them.
Air Canada initially offered Tannous $250 in compensation. Unsatisfied with the amount, he filed a complaint with the State Tax Administration.
According to court documents, Air Canada argued that the CTA's order awarding Tannous $2,079 was erroneous because the purchases he made to replace items in his missing suitcase “were excessive, including luxury items” and some of the items were purchased after the suitcase was returned.
In his decision, Judge Manson agreed that the CTA's decision was questionable because it included part of the later purchases.
“The officer's reasons do not address or demonstrate any common sense as to why post-delivery procurement was causally related to the delay,” he wrote.
Air Canada told CBC News via email that he was satisfied with the judge's decision.
Tannous said Air Canada served him with court papers on Christmas Eve 2024. He said he did not hire a lawyer or participate in the court case because he believed it was a waste of money and time.
He declined to comment on the outcome of the case, saying only that it was still active.
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In FebruaryTannous told CBC News that during the trip to Vancouver, Air Canada said it could spend a “reasonable amount” on essential items needed because of the couple's missing suitcase.
“They couldn't even track the luggage, whether it was in Toronto or in transit,” he said. “I was under the impression that the luggage was missing.”
According to court records, Tannous provided receipts for $3,435 in compensation. Rules at the time allowed passengers to claim up to approximately $2,350 for delayed luggage.
The judge noted that Tannous made $1,691.98 in purchases before the bag arrived, but the CTA awarded him more than $2,000 in damages.
“I think it’s fair,” Tannous said of STA decision.
Purchases made after the luggage arrived, causing concern to the judge. there were a pair of sneakers ($433.61) and a personally monogrammed Tumi suitcase ($1,310.40).
Tannous said the sneakers were purchased before he learned that Air Canada had returned the couple's luggage and that he bought a Tumi bag to bring new replacement items home.
Judge Manson noted in his decision that Air Canada also argued that the CTA employee should have excluded the “luxury” items purchased by the couple from compensation.
The judge did not comment directly on the issue, but wrote that “the case is now on a different issue.” [CTA officer] provide a more reasoned and logical solution to the entire claim.”
The way the rules currently work is that after CTA officials make rulings in cases where passengers or airlines disagree with the outcome, they can challenge the decision in Federal Court.
Air Canada said it brought the case against Tannous to obtain “guidance as to what constitutes reasonable expenses that customers may be entitled to.”
