Wednesday, September 29, 1999

OTTAWA - Today, at ad hoc committee hearings on the future of Canada's airlines organized by opposition parties, Democracy Watch proposed the creation of an Air Passengers Organization (APO) to ensure that passengers have a strong voice in policy-making and the marketplace.

Under Democracy Watch's proposal, the APO would be created by the method used in some U.S. states to create utility watchdog groups. In these states, utilities have been required to enclose a flyer in their billing envelopes inviting people to join what is called a Citizen Utility Board (CUB). About four percent of consumers usually join the CUB at a $10-15 annual membership fee. CUBs are independent, broad-based watchdog groups that are run democratically by their members and represent consumersŐ interests in the marketplace. For example, in Illinois the CUB has 150,000 members, a $1.5 million annual budget, and has saved consumers over $4 billion since 1983 by opposing rate hikes by state utilities.

To set up the APO, the federal government would require Canada's airlines to enclose periodically a one-page pamphlet to passengers when they board a plane and also through frequent-flyer mailings. The pamphlet will describe the APO and invite passengers to join at an annual membership fee of $20-30. The government can either lend or grant to the APO the funds needed to print and distribute the first pamphlet. After the first pamphlet, however, the APO will pay all the costs of the pamphlet. As a result, the APO can be set up little or no cost to government or the airlines.

If only four percent of the estimated 10 million annual airline passengers in Canada join the APO, it will have 400,000 members and an $8-12 million annual budget. With these resources and large membership base, the APO will be large and strong enough to help airline passengers and hold airlines accountable to consumer interests.

"Consumer protection laws are not enough to ensure all Canadians are served well by the airlines," said Duff Conacher, Coordinator of Democracy Watch, "Air passengers need a strong organization they can call on for help and to ensure laws are enforced and airlines held accountable for poor service."