Canada introduced new consumer protection rules Monday for airline passengers travelling to or from the country, offering up to Can$2,400 (1,634 euros) in compensation for people who miss flights because airlines have overbooked.
"We have created a world-leading approach to air passenger rights that is clear, consistent, transparent and fair," said Transport Minister Marc Garneau as he unveiled the new regulations.
As of Monday, airlines will be required to "provide compensation of up to 2,400 Canadian dollars for denial of boarding for reasons within the airlines' control," such as overbooking, when an airline sells more tickets than a given flight can accommodate.
Airlines will also have to pay up to 2,100 Canadian dollars for lost or damaged luggage, as well as a refund of any baggage fees, the Canadian government said in a statement.
A second phase of the regulations will come into effect on December 15 to cover "flight delays, cancellations and seating children in proximity of a parent or guardian."
Garneau said that airlines could face penalties of up to 25,000 Canadian dollars for each incident of non-compliance.
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