Airline bodies call for reform of 'unfair' EU compensation rules

Representatives from IATA and the European Regions Airline Association (ERA) have highlighted what they believe to be unfair interpretations of rules introduced by the European Union to compensate passengers for flight disruption.

"The majority of interpretations by the different courts have been very detrimental to the airlines and very much in favour of the passengers," states Montserrat Barriga, ERA's director general, speaking at the Routes Europe event in Bilbao today.

EU Regulation 261 was introduced in 2004, and sets out a number of rules around compensating passengers when a flight is cancelled or delayed, or when a passenger is denied boarding. A consultation is currently under way on potentially amending the rules, and IATA and the ERA are working together to urge reform of the system.

The biggest issue, according to Barriga and Rafael Schvartzman, regional vice-president for Europe at IATA, is the lack of clarity around the "extraordinary circumstances" that excuse airlines from having to pay compensation.

Barriga highlights a recent European ruling that a "wildcat" strike which affected German operator TUIfly did not count as an extraordinary circumstance.

"What kind of bargaining power do airlines have if the crew just decide to go on strike?" she asks. "They have no bargaining power."

Schvartzman adds: "To put things in proportion, 5% of cancellations on average are due to the airline itself. The rest are to do with external factors."

Schvartzman cites the 2010 disruption caused by the eruption of the Eyjafjallajokull volcano in Iceland. He suggests airlines unfairly had to pay out €241 million ($295 million) in compensation, adding: "We all know this is an extraordinary circumstance, right?"

He claims that one cancelled short-haul flight alone could leave a carrier facing compensation claims totalling €30,000, and urges a "more balanced" regulation for airlines and passengers.

Barriga continues: "What we’re asking is please, make a list of extraordinary circumstances... If it’s out of control of the airline, why should they be penalised? It doesn’t happen in any other business".

Source: flightglobal