Canada has just passed legislation giving passengers broad new rights—and fairly generous compensation—for delays and bumping. The new rules go into effect on July 15, with the compensation part in December.
Passengers have a year to file for compensation, with claims going to the airline first, and only to government agencies if the matter isn't settled.
Compensation for involuntary bumping is set at $900 if the delay in getting people re-accommodated is less than six hours, $1800 for six to nine hours, and $2400 for nine hours or more. All items in Canadian dollars.
Payment for delays depends on the size of the airline, for each of the three time categories. Minimum compensable delay is three hours. For large airlines the rates are $400, $700 and $1000. For small carriers, the rates are $125, $250 and $500. Large carriers are defined as those that carry two million passengers a year or more.