Aviation

This airline will be billed $790 for each customer complaint resolved

In a bold move to streamline passenger complaint resolution, Canada’s transport regulator has proposed a new policy that would charge airlines $790 CAD (~$583 USD) for each customer complaint it resolves.

This initiative, announced by the Canadian Transportation Agency (CTA), aims to alleviate the agency’s record-high backlog of air travel complaints, currently sitting at approximately 78,000 cases.

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On Wednesday, the CTA launched a one-month consultation period to gather feedback on these proposed reforms, which would apply to valid customer complaints that the agency processes and settles. According to the agency, it anticipates resolving over 22,600 complaints annually, translating to about $17.9 million in fees levied against airlines.

The government hopes to recoup approximately 60% of the costs associated with handling these complaints, which are projected to reach $29.8 million annually. The bulk of these expenses stems from salaries and benefits for the agency’s resolution officers.

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Critics of the proposal, including passenger rights advocate Gabor Lukacs, argue that the measure may not be sufficient to deter airlines from rule-breaking, stating it comes “too little, too late.” The CTA contends that the fee structure aims to provide a financial disincentive for airlines, potentially leading to improved compliance and better service for travelers.

The CTA’s proposal underscores the ongoing frustrations faced by passengers in Canada’s air travel system, as the demand for more effective complaint resolution processes continues to rise amid unprecedented travel disruptions.

Aviation

S7 Airlines and UAC Ink Agreement for 100 Tu-214 Aircraft

In a significant development for Russian aviation, S7 Airlines (S7) has signed a Memorandum of Understanding (MoU) with United Aircraft Corporation (UAC) to acquire 100 Tu-214 airliners.

The deal was formalized on September 18, 2024, in Kazan, a city renowned for its aircraft production, specifically the Tu-214, by UAC. The agreement was signed by Yuri Slyusar, Managing Director of UAC, and Vladislav Filev, owner of the S7 Group.

The Tu-214, a modernized version of the Soviet-era Tu-204, is designed to replace popular Airbus A320 and Boeing 737 models within Russian fleets. As Russia moves towards greater self-reliance in aviation amidst international sanctions, this agreement marks a pivotal shift in the country’s airline industry.

UAC is aiming to scale up its Tu-214 production, with plans to produce 10 aircraft annually by 2025/26 and 20 per year by 2027. Historically, few international airlines have operated the Tu-214, with North Korea’s Air Koryo and Cuba’s Cubana de Aviación among the few.

However, the aircraft’s three-person cockpit, a unique feature of its Soviet-era lineage, sets it apart from more modern two-pilot designs. Despite these differences, Russian carriers, including national airline Aeroflot, are embracing the model. Aeroflot has already placed a significant order for 40 Tu-214s, reinforcing its strategic importance.

With S7 Airlines joining the ranks of Russian carriers moving towards domestically produced aircraft, the acquisition of 100 Tu-214s signifies a major step in UAC’s effort to reduce reliance on Western aircraft. As the new fleet takes shape, this deal strengthens the Russian aviation industry’s resilience, positioning it for a more autonomous future.