ehho
Posts: 769
Joined: Thu Dec 15, 2005 3:26 am

EU Compensation Ruling

Tue Jan 10, 2006 8:38 pm

Back in Holland.. so my first post under the Dutch tricolor!

The news services have been buzzing all morning about the ECJ in Luxemburg's ruling confirming the airline passenger compensation rules that were passed in Brussels last year.

My question is: does it really affect the established (legacy) carriers a lot? On a great many occasions I've had vouchers, food coupons, cash, upgrades, lodging and what not from Star/SkyTeam/OneWorld members. However, I can imagine that U2, FR and the like don't have financial reserves for such compensations. Makes you wonder if the new rules are fair after all..
"Get your facts first. Then you may distort them as much as you please" -- Mark Twain
 
ANother
Posts: 1833
Joined: Thu Nov 03, 2005 2:47 am

RE: EU Compensation Ruling

Tue Jan 10, 2006 10:08 pm

Quoting EHHO (Thread starter):
My question is: does it really affect the established (legacy) carriers a lot?

There were two appeals - one by IATA (legacy) and one by the LCCs. The legacy appeal was related to the rule related to long delays (and not DBC or cancellations). i.e. Why should an airline be required to pay hotels/meals/etc. for delays that are outside of their control: weather, ATC, etc. The ECJ ruling says that, notwithstanding the Montreal Convention, the EC was within their rights to impose a regulation which makes airlines responsible for these.

The LCC appeal was that it was disproportionate to assess Compensation well in excess of the fare paid. In this case the ECJ disagreed saying, again, that the EC was within their rights to impose a regulation that provides for this.

This will be costly for the legacys, but much more so for the LCCs - particularly those that believe that their 'policy' not to provide HOTAC ect overrules this Regulation.

The courts are going to be busy.

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