Air Canada has initiated a limited pilot project to test a third-party Alternative Dispute Resolution (ADR) process for settling customer claims under Canada’s Airline Passenger Protection Regulations (APPR). The trial, announced April 8, involves randomly selected customers and is intended to assess the effectiveness of ADR in resolving compensation disputes.
The pilot invites 500 customers with existing claims filed at the Canadian Transportation Agency (CTA) to transfer their case information to Canada Aviation Dispute Resolution (CADR), an independent firm specializing in air travel complaints.
Participants do not need to re-enter information, and a CADR arbitrator will review documentation from both the customer and Air Canada, providing a decision within 90 days of receiving complete information. The outcome is binding for Air Canada but not for the customer, who may reject the decision and continue with the CTA process. The process is offered at no cost to participants and does not affect their position in the CTA queue.
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Air Canada developed the pilot in consultation with Transport Canada and the Canadian Transportation Agency. CADR is a subsidiary of The CDRL Group, a not-for-profit organization certified to provide aviation-related ADR services in the UK and other European countries. Following the pilot, Air Canada plans to evaluate results and consult with government stakeholders regarding future steps.
