The Supreme Court of Canada has agreed to hear an appeal from several airlines, including Air Canada and Porter, looking to quash rules that boost compensation to passengers for delayed flights or damaged luggage.

The carriers, and 16 other appellants, including IATA, argue that Canada’s four-year-old passenger rights charter violates global standards and should be rendered invalid for international flights.

Launched in 2019, the legal action states the provisions exceed the Canadian Transportation Agency’s authority and contravene the Montreal Convention by imposing heftier compensation requirements for flight cancellations or lost baggage.

In December, the Federal Court of Appeal dismissed the airlines’ case, with the exception of one regulation that applies to the temporary loss of baggage.

The Canadian Transportation Agency and attorney general argue there is no conflict between passenger protections and the Montreal Convention, a multilateral treaty.

Under the federal rules, passengers have to be compensated up to
$2,400 if they were denied boarding – so-called flight bumping – because a trip was overbooked, while delays and other payments for cancelled flights warrant compensation of up to $1,000.

IATA, the lead party in the appeal, said it had no comment on the appeal as the proceedings are before the court.

Porter Airlines spokesman Brad Cicero said in a statement that while the airline agrees with broad objectives of the regulations, it is supporting other parties in the court application to clarify aspects that may be inconsistent with established treaty obligations for international travel.

Air Canada didn’t immediately respond to a request for comment.