New deal for air travellers fails to take off

Date: 17/04/1997

By Chris Johnstone

PROPOSALS to revamp compensation rules for passengers turned away from overbooked flights at the last minute have hit turbulence after protests from airlines.

The European Commission is calling for updated rules on 'denied boarding', with higher compensation for passengers, an extension of the measure to cover charter flights and more information for travellers on their rights.

But Europe's biggest scheduled airlines say the proposed changes will burden them with higher costs at a time when their profit margins are falling. Charter carriers have also expressed concern.

Transport Commissioner Neil Kinnock's officials were originally expected to finalise their proposals this month, but airlines have asked for more consultations.

The EU's existing denied-boarding rules, introduced in 1991, promise scheduled airline passengers 150 ecu in compensation for flights of up to 3,500 kilometres and 300 ecu for longer journeys, as well as their ticket money back or a later flight if they are unable to take the one they booked.

A Commission official said changes to compensation levels were still being discussed, but Marcel Pisters, director-general of the charter airline lobby the International Air Carriers Association (IACA), claimed the proposals would increase compensation to 200 ecu and 400 ecu respectively.

Airlines are also concerned about expected Commission demands that they spell out passengers' rights on tickets and at airport check-in counters.

Officials say many airlines, mostly non-European, are failing to inform passengers adequately. But Europe's biggest scheduled airlines, grouped together in the Association of European Airlines (AEA), point out that they are already complying with the existing rules and insist they should not be penalised with tougher rules because of a few backsliding carriers.

“You should first of all bring them into line and then see if new rules are necessary,” said an AEA spokesman, claiming the problem with the existing rules was that some national civil aviation authorities did not appear to be fulfilling their supervisory and enforcement roles.

Charter airlines have their own reservations about the plans. The Commission says the denied-boarding provisions need to be widened to fill an existing gap where those travelling with seat-only tickets are not covered by any compensation rules.

Holidaymakers on package tours are already covered by separate legislation offering them compensation. But seat-only tickets are becoming increasingly common, especially following the collapse of some national requirements - such as those imposed by Greece - which forced seats to be sold with accommodation.

Charter airlines say either they or the tour operator might be responsible for the seat-only sales. Pisters said airlines would suffer if forced to pay compensation up front and seek reimbursement later.