A ”balanced solution” is needed when it comes to compensating airline passengers denied permission to board a flight because it is overbooked, the Southern African Tourism Services Association (Satsa) said on Tuesday.
If this is ”skewed” in favour of passengers, there is a risk it could increase the price of tickets, Satsa CEO Michael Tatalias warned in a statement.
Tatalias was reacting to Transport Minister Jeff Radebe’s written reply on Monday to a question in Parliament, in which he said details regarding such compensation would be incorporated in regulations to be promulgated under the Consumer Protection Act (CPA).
There is currently no legislation in South Africa that requires compensation to be paid where boarding a flight is denied — unlike the European Union, where airlines are legally obliged to pay compensation to refund the cost of the ticket and associated costs such as accommodation and meals.
Tatalias said the CPA legislation might end up attracting far fewer new foreign airlines in the short term than might have happened a few years ago.
”Europe can get away with negative rules as there is big and consistent demand to fly to Europe. However, there is less demand for South Africa. So we have to work harder to attract airlines.”
He said Satsa welcomes open debate on the matter and hopes it is possible to come up with a balanced solution that provides protection for both airline and passenger.
”So long as the solution is acceptable to all sides, we have achieved a positive, as long as the rules are clear and codified in this Act. Once this is achieved, any overseas or local airline looking to invest will be able to cost in a known and stable factor.
”If it is too skewed in favour of passengers, there will be the risk of increasing the price of tickets, making airline ticket rules far less flexible and more draconian and chasing airlines away,” he said. — Sapa