Air Canada has successfully challenged a decision made by the Canadian Transportation Agency (CTA) in Federal Court. The ruling, issued by Justice Michael Manson, criticized the CTA's reasoning as lacking "common sense." The case centers on two passengers who flew from Toronto to Vancouver on May 25, 2022. Upon arrival, one of their bags did not make it to Vancouver. Air Canada delivered the missing bag to their hotel the next morning, on May 26. The passengers filed a complaint with Air Canada regarding the delayed bag, claiming $3,561.26 in expenses. In response, the airline issued a refund of $250. Dissatisfied, the passengers escalated the issue to the CTA, submitting receipts totaling $3,435.99. However, some receipts included purchases made after the bag was delivered, such as luggage bought for $1,310.40 on May 28. The court did not clarify why the passengers made these purchases after receiving their bag. Under the Montreal Convention, which governs airline liability and passenger compensation, the compensation limit for a delayed bag is set at 1,288 Special Drawing Rights (SDRs), equivalent to $2,329.72 in this case. After Air Canada’s initial payment of $250, the CTA officer determined that the airline owed an additional $2,079.72. The officer ordered this amount to be paid by December 15, 2024. In his recent ruling, Justice Manson focused on the CTA officer's decision to include expenses for items purchased after the bag was delivered. He stated, "The Officer’s reasons do not address, nor show any common sense on why post-delivery purchases were causally linked to the delay, including the inclusion of the May 28, 2022 luggage purchase of $1,310.40." Manson noted that the receipts for items purchased before the bag's delivery totaled $1,691.98, which was below the compensation cap. He deemed the CTA officer's decision unreasonable. Gábor Lukács, president of Air Passenger Rights, an independent organization advocating for travelers, supported the court's ruling. He stated, "Purchases made after the bag was delivered are, indeed, as a matter of common sense not something the airline should be paying for. That is a no-brainer, and I agree with the judge that the (CTA officer’s) decision was unreasonable." The judge also mentioned that Air Canada argued the CTA officer should have distinguished between essential and luxury items. However, he did not elaborate on how to differentiate between the two. The ruling did not specify which items were purchased before or after the bag was delivered. Justice Manson concluded that it is now the responsibility of a different CTA officer to provide a more reasoned decision regarding the entire claim. Lukács emphasized that the focus should be on reimbursing expenses incurred before the delayed bag was returned to the passengers. He noted that the limit for damages related to delayed bags has increased to approximately $3,000. The case has been sent back to the CTA for further review by a different officer.