Air Canada has successfully overturned a Canadian Transportation Agency (CTA) decision requiring the airline to pay a passenger $2,079 for delayed baggage.

After an 11-month court battle launched by Air Canada, Federal Court Justice Michael Manson ruled that a CTA officer’s 2024 decision was unreasonable. The matter has been sent back to the CTA, Canada’s transport regulator, for a new officer to reassess the compensation claim.

The case originates from a 2022 flight Alaa Tannous and his wife, Nancy, took from their home city of Toronto to Vancouver. Their checked baggage arrived one day after they did.

Air Canada originally offered Tannous $250 compensation. Dissatisfied with the amount, he filed a complaint with the CTA.

According to court documents, Air Canada argued the CTA’s order

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