Air Canada sues passenger over lost bag dispute

"It was shocking. It's disappointing to see the airline, after all the money I spent with them over the years … they're appealing a $2,000 claim. There's no point for me to waste more money," Tannous stated when Air Canada challenged this decision in Federal Court.

A CTA spokesperson defended the process: "Anyone that is subject to a decision made by a government organization... can challenge that decision through review by the Courts."

Air Canada's legal argument includes claims that Tannous and his wife did not justify their expenses adequately since some purchases were made after their luggage had been returned.

At present, this case remains unresolved in court. It highlights complexities in airline liability and compensation issues regarding lost baggage.

In another instance of airlines challenging CTA rulings in court last year, Air Canada disputed a compensation ruling involving passengers Andrew and Anna Dyczkowski over flight delays.

Air Canada's baggage handling performance has been criticized recently as well; it ranks poorly among North American airlines for lost luggage incidents according to an assessment of Tripadvisor reviews conducted by Slotozilla.

To address these issues, Air Canada has implemented Apple's "Find My Share Item Location" feature into its customer service systems to help track misplaced baggage more efficiently.