The deregulation of the airline industry began over 30 years ago based on the belief that the free market would produce greater benefits for Canadian travelers than strict government oversight and control of airlines' commercial activities. The evidence is clearly positive for travelers. The competition unleashed by deregulation led to lower fares, more flights, a bigger choice of airlines. Air travel became more affordable and more convenient for Canadians. That's hugely important for a country as vast as Canada. Despite this enormous success, the Government of Canada wants to backpaddle in one critical area. Earlier this year, the Government announced that it will require airlines to compensate passengers for delays and cancellations, even in instances where the airline neither caused nor contributed to that disruption. No one enjoys having their flight delayed or cancelled. And there are widely reported examples where passengers affected by delays have not received the treatment they deserve. Fortunately, these situations are rare and in our last survey of Canadian travelers, 93% said that they were satisfied with their last trip. If, however, there is inclement weather, an unanticipated mechanical issue, or inadequate staffing levels by air navigation service providers, fully meeting passenger needs to get their destination can be a challenge. In these instances, airlines recognize their duty of care and provide their customers with appropriate meal vouchers and hotel accommodation. Now the government wants airlines to pay penalties in addition to hotel and meal care. If there is a rain delay for a baseball game, you may get an option of a ticket refund, but nobody would expect a baseball club pay a penalty to fans. And, similarly, it is not right to require airlines to compensate travelers for situations outside their control either—when the weather does not cooperate, or air traffic control cannot handle traffic volumes. Mandating financial compensation by airlines beyond the cost of the ticket does nothing to address passenger inconvenience. It does not improve the air travel system. And it is not equitable.  Travelers recognize this. When we surveyed Canadian travelers 90% agreed that all parties involved in a delay or cancellation should play a role in helping affected passengers. That does not happen today; and it won't happen with the government's proposed regulation. Even more concerning, introducing penalties for punctuality sends the wrong signal on safety.  Surely no one would want airlines to be punished for a zero-tolerance approach to managing safety risks that has made aviation the safest mode of travel. The Government of Canada has ready proof that its proposed approach does not work. In 2003 the EU implemented a similar scheme. This resulted in billions of dollars of increased costs for airlines which they have limited ability to absorb. So passengers effectively paid for the compensation in their air fares. And, without any incentive for ATC to improve the root causes of delays were never addressed. The result: delays and cancellations increased. So the policy objective was not met.  The European Commission has since identified needed changes to the regulation, including providing a clear list of extraordinary circumstances, such as safety- related incidents, under which airlines would not be responsible for compensation payments. Canadians depend on a robust commercial aviation system, both in major metropolitan and remote areas. Mandating compensation to passengers that could far exceed the cost of their loss during a delay or cancellation will lead to higher airline costs. And some communities may well see air service shrink if the costs of managing compensation become too great. Canada needs reliable world-leading air services. The government's current plan will move Canada in the wrong direction. Willie Walsh is the Director General of the International Air Transport Association, a Canadian-based trade association that represents the interests of over 300 airlines worldwide.