Under new regulations, passengers on flights into or out of Canada can claim up to Can$2,400 if they are bumped due to airline overbooking

Canada introduced new consumer protection rules Monday for airline passengers traveling 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 .

As of Monday, airlines will be required to "provide compensation of up to Can$2,400 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 Can$2,100 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 Can$25,000 for each incident of non-compliance.