CALGARY — WestJet could be forced to pay more for lost or damaged luggage following a ruling by the Canadian Transportation Agency in a complaint over the $250 limit the airline places on compensation.
The agency received a complaint from University of Manitoba mathematics Prof. Gabor Lukacs, who has become something of a crusader for airline passenger rights in the past number of years.
In its preliminary ruling, the federal agency, which is responsible for dispute resolution and economic regulation in the industry, said the $250 WestJet (TSX:WJA) cap is unreasonable.
The ruling notes that WestJet’s need for such a limit does not “outweigh the interests of Mr. Lukacs and other consumers.”
Lukacs said he is not convinced that the preliminary ruling will be the end of the matter, noting that WestJet has 20 days to respond.
“This is a victory in a battle but it’s not winning the war yet,” he said from Budapest, where he is working on a paper. “I half expect WestJet to appeal and make a motion for leave to appeal to the Federal Court of Appeal. But I am extremely happy with the decision. (The airline’s policy) makes completely no sense. If you look at Air Canada’s limits, they have $1,500, which is quite reasonable.”
The agency has the authority to change the terms and conditions for flying with the airline, said spokesman Marc Comeau.
“The carriers are free to set their terms and conditions as they see fit for domestic flights. And if someone feels that there’s something in there that they disagree with, then they can file a complaint with the agency and the agency can make a ruling,” he said.
“We can order them to do basically anything with the tariff. We can order them to eliminate a portion of the tariff if we think it’s unreasonable.”
An official with WestJet said the ruling will require more review.