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BackThis week, an initial hearing on a new air passenger rights proposal took place in the European Parliament. Both the European Consumer Centre and the European Consumers' Organisation BEUC, which see an urgent need to improve air passenger rights, do not agree with the current version of the Commission text. However, the representatives of the aviation industry also see room for improvement, even though the new Commission proposal might find the proposal on air passenger rights quite accommodating.
The negotiations on the air passenger rights proposal of the Commission have just started in the European Parliament. The Transport Committee and the Committee on Internal Market and Consumer Protection are cooperating in drawing up a respective parliamentary report. The responsible EU representatives are Georges Bach and Hans-Peter Mayer, both members of the European People’s Party. According to the MEPs, the proposal is going in the right direction. However, it was necessary to discuss the duration of flight delays. Determining and granting compensation of EUR 100 to pay for accommodation in case of a delay might not be sufficient in certain regions. There was also a need for improvement in case of exceptional circumstances that caused a delay or for passengers with restricted mobility. The Commission text also had to address problems with connecting flights.
Even though the Commission proposal seems to accommodate the wishes of airlines, the five representatives of the aviation industry, who were invited, appeared to have problems with the new rules proposed. Airports want an addition, which stipulates that airlines have to be represented by a contact person at airports, who passengers can turn to if they encounter problems. The contact person should also have the power to take immediate decisions. The new regulation in respect of the so-called “No show” clause is a thorn in the flesh of the International Air Transport Association IATA. According to this clause, the return flight is automatically cancelled if the passenger has not travelled on the outbound flight. However, according to the Commission, such a clause shall no longer be possible. According to IATA, this would be very expensive for airlines, because many seats would remain vacant, which would also be detrimental to the environment. Alternatively, it could happen that airplanes would be overbooked, which in turn would carry the risk that some passengers may not be able to use their flight because there was no vacant seat available. It has also not been made clear, which operator has to pay for delays in case of connecting flights. Cheap airlines want compensation payments to reflect the price of the ticket. They can imagine compensation of 100 up to maximal 250 Euro – dependent on the price of the airline ticket. The representative of the charter industry commented that charter companies would be affected three to four times more, because they were more frequently delayed. The reason for this would lie in the fact that their support network was not developed to such an extent that they could carry out repair work for example. Apart from that, they were more engaged in leisure travel; hence the issue of delays was less sensible than in case of business trips.
Both the European Consumers' Organisation BEUC and European Consumer Centre see a lot of room for improvement: complaints by air passengers had increased by 96 % during the past five years. A study in Great Britain had shown that 44 % of passengers were not supported if they encountered problems and according to a survey conducted in Germany, only every fourth passenger was offered compensation for a delay. There was a systemic refusal of airlines to offer support to passengers. The revision of the regulation was now giving the impression that such behaviour is even rewarded. According to consumer protection organisations, compensation, as already envisaged and confirmed by the European Court of Justice, shall already be due after 3 hours. However, the Commission is now providing for grading delays; in certain cases compensation is only due if a flight is delayed for more than 12 hours. A restriction of care responsibilities, as proposed by the Commission, had to be rejected. In many cases, hotel accommodation would cost more than the proposed 100 Euro; it could happen that passengers had to wait more than the three days for their next flight, which have now been suggested as the maximum duration of support or care. Voluntary agreements were not adequate in cases of insolvency; it was necessary for Parliament to provide for improvements to keep the damage for passengers as low as possible. Apart from that, travellers should be able to choose whether they receive compensation in form of a voucher or as a cash payment. In addition, information requirements had to be expanded, commented the consumer protectors.
The two rapporteurs of the European Parliament would like to present their proposals mid-September; voting in the Committees has been scheduled for November. So far, no date has been set for the plenary vote.
Further Information:
AK EUROPA Position on air passenger rights
Even though the Commission proposal seems to accommodate the wishes of airlines, the five representatives of the aviation industry, who were invited, appeared to have problems with the new rules proposed. Airports want an addition, which stipulates that airlines have to be represented by a contact person at airports, who passengers can turn to if they encounter problems. The contact person should also have the power to take immediate decisions. The new regulation in respect of the so-called “No show” clause is a thorn in the flesh of the International Air Transport Association IATA. According to this clause, the return flight is automatically cancelled if the passenger has not travelled on the outbound flight. However, according to the Commission, such a clause shall no longer be possible. According to IATA, this would be very expensive for airlines, because many seats would remain vacant, which would also be detrimental to the environment. Alternatively, it could happen that airplanes would be overbooked, which in turn would carry the risk that some passengers may not be able to use their flight because there was no vacant seat available. It has also not been made clear, which operator has to pay for delays in case of connecting flights. Cheap airlines want compensation payments to reflect the price of the ticket. They can imagine compensation of 100 up to maximal 250 Euro – dependent on the price of the airline ticket. The representative of the charter industry commented that charter companies would be affected three to four times more, because they were more frequently delayed. The reason for this would lie in the fact that their support network was not developed to such an extent that they could carry out repair work for example. Apart from that, they were more engaged in leisure travel; hence the issue of delays was less sensible than in case of business trips.
Both the European Consumers' Organisation BEUC and European Consumer Centre see a lot of room for improvement: complaints by air passengers had increased by 96 % during the past five years. A study in Great Britain had shown that 44 % of passengers were not supported if they encountered problems and according to a survey conducted in Germany, only every fourth passenger was offered compensation for a delay. There was a systemic refusal of airlines to offer support to passengers. The revision of the regulation was now giving the impression that such behaviour is even rewarded. According to consumer protection organisations, compensation, as already envisaged and confirmed by the European Court of Justice, shall already be due after 3 hours. However, the Commission is now providing for grading delays; in certain cases compensation is only due if a flight is delayed for more than 12 hours. A restriction of care responsibilities, as proposed by the Commission, had to be rejected. In many cases, hotel accommodation would cost more than the proposed 100 Euro; it could happen that passengers had to wait more than the three days for their next flight, which have now been suggested as the maximum duration of support or care. Voluntary agreements were not adequate in cases of insolvency; it was necessary for Parliament to provide for improvements to keep the damage for passengers as low as possible. Apart from that, travellers should be able to choose whether they receive compensation in form of a voucher or as a cash payment. In addition, information requirements had to be expanded, commented the consumer protectors.
The two rapporteurs of the European Parliament would like to present their proposals mid-September; voting in the Committees has been scheduled for November. So far, no date has been set for the plenary vote.
Further Information:
AK EUROPA Position on air passenger rights