The European court of justice dismissed a challenge on Tuesday to European Union rules covering compensation for air travellers whose flights are overbooked, cancelled or delayed.
Europe’s highest court rejected claims by the International Air Transport Association (Iata) and the European Low Fares Airline Association (ELFAA) that the regulations were unfair to their members and failed to protect consumers. Both organisations said they were disappointed by the decision and would press the European commission to review what they argued were flawed laws, which Iata estimates will cost â,¬600-million a year.
Iata said that under the rules, which came into force last February, passengers who were not allowed to fly because of overbooking could receive up to â,¬600. Airlines are required to provide free ”care” — from a cup of coffee or a meal to hotel accommodation — for those whose flights were delayed, with an option of compensation for travellers whose flights were cancelled at short notice.
The airline organisations complained that the rules ran counter to international regulations governing passenger compensation, penalised members for events outside their control such as bad weather and strikes by air traffic controllers, put them at a disadvantage to alternative means of transports and, in the case of low-cost carriers, imposed sanctions disproportionate to the cost of a ticket.
But the court said the EU rules were not at odds with the Montreal Convention on compensation. It said the position of the airlines could not be compared with other forms of transport and ruled that all airlines had to be treated in the same way, irrespective of pricing policies. ”The regulation on compensation and assistance for air passengers is valid,” it ruled.
A spokesperson for the European commission welcomed the ruling. ”It’s good news for air passengers that now enjoy strengthened rights compared with the ones they had under previous legislation.”
Giovanni Bisignani, head of Iata, called it a ”missed opportunity”. ”It is a sad day for Europe, for consumers, for international law and for the airline industry.”
Jan Skeels, ELFAA’s secretary general, said the organisation supported passenger rights legislation that made sense. ”However, it is very disappointing that the court has failed to overturn what is clearly a bad piece of legislation that does nothing for consumers and seriously undermines the competitiveness of the European air traffic industry.
”Having successfully liberalised the air transport industry, the European commission now appears determined to destroy that success by over-regulating it.”
Jim Callaghan, of Ryanair, said: ”On a day when the ferries cancelled all services to Ireland but are not required to reaccommodate passengers or pay any compensation … why is there one rule for airlines, who rarely cancel flights, and a different set of rules for ferries and trains?”
However, David Evans, of BA’s regional subsidiary CitiExpress, said it already paid out ”relatively modest” compensation where necessary and added that it was right to do so ”if we fail to deliver”.
The consumer body Which? said: ”The airline industry can no longer hide behind excuses for not providing passengers with assistance when things go wrong.”
Though the ruling will have to go back to Britain’s high court, the move is seen as purely procedural, obliging the groups to lobby Brussels to change the rules.
Wait for flights, wait for refunds
The EU’s air passenger rights, which came into force last February, were designed to stop airlines from cancelling flights and abandoning passengers. They affect all flights that start or finish within the EU.
Passengers bumped off flights that have been over-booked are entitled to â,¬250-â,¬600 compensation depending on the length of the flight, plus a refund of their ticket and a free flight home if relevant.
If your flight is cancelled, the airline must give you a refund of your ticket and a flight home if relevant, plus meals and hotel accommodation if required. If there is a long delay, above, the airline must offer food and drinks plus a hotel room, if relevant. If there is a delay of five hours or more, the airline must offer to refund your ticket and provide free transport home.
The main problem is that the law’s wording is highly ambiguous, and the airlines have used this ambiguity to deny claims made by passengers.
The airlines do not have to pay compensation if the flight is cancelled for safety reasons and travellers have alleged that the true reason for the cancellation is not necessarily the one given to passengers.
The issue is complicated because the body that represents passengers’ rights in Britain — the Air Transport Users Council (AUC) — is understaffed and admits it has not got the means to investigate cancellations. Passengers argue that the AUC interprets the rules in the most airline-friendly way. It cannot force airlines to compensate passengers left stranded, although yesterday’s ruling should encourage more claims.
Case study: Bereft in Bratislava
Peter Ashworth, a retiree and opera buff, was among 180 passengers stranded at Bratislava airport after easyJet cancelled its return flight to Luton on December 30. EasyJet said it could only offer a replacement flight six days later.
Ashworth and his wife, Maureen, queued for two hours to be told that the plane would not be flying. No reason was given. The pair were offered a flight on January 5 but told they would have to pay the intervening hotel bills. Contrary to EU regulations, he said they were not handed a leaflet detailing their rights or offered any food or drinks. ”It was utter chaos. There was one member of staff to tell 180 passengers they wouldn’t be flying, and she knew nothing. No help was offered.”
The pair were lucky to buy the last two seats on another flight offered by rival airline SkyEurope and flew back at 7.15pm, but to Stansted. ”The extra flights cost us £440 and we had to get a £50 taxi back to our car. When we complained to easyJet on our return they just offered us the cost of the unused return proportion of our tickets — just under £60 each. We’ve since been told our holiday insurance won’t cover it,” said Ashworth
EasyJet said weather problems across Europe on that day caused disruption to the fleet, causing aircraft to be grounded at airports which were snowed in and resulting in the cancellation. It has since confirmed that it will pay for the Ashworth’s replacement flights and out-of-pocket expenses. – Guardian Unlimited Â