Federal appeal court greenlights airlines' challenge to passenger bill of rights

Justice

The Federal Court of Appeal will hear a legal challenge of Canada's new passenger bill of rights, which increased compensation for travellers subjected to delayed flights and damaged luggage.

The appeal was filed last month by a group of 17 airlines -- including Air Canada and Porter -- as well as two industry groups.

They argue the regulations exceed the Canadian Transportation Agency's authority and contravene the Montreal Convention.

As of July 15th, passengers can be compensated up to 24-hundred-dollars if they are bumped from a flight and receive up to 21-hundred-dollars for lost or damaged luggage.

Compensation of up to one-thousand dollars for delays and other payments for cancelled flights will take effect in December.

The federal government and the Canadian Transportation Agency have already said they will fight the legal challenge.