Legal
Ian Skuse is a partner and head of Piper Smith Watton LLP’s Aviation, Travel & Tourism department. Piper Smith Watton LLP (
www.pswlaw.co.uk) is a business and private client law firm based in Westminster
NEW CHANGES TO AIRLINE PASSENGER RIGHTS
Regulations coming into force will hopefully bring an end to compensation ambiguities
THE EUROPEAN COMMISSION (EC) has published proposals for changing the EU regulation on compensating and assisting passengers in the event of denied boarding cancellation and long flight delays (EC261/2004). These are likely to come into force in 2014, and the EC says they clarify legal grey areas, improve complaint handling, ensure consistent enforcement and consider carriers’ financial costs.
The key changes include:
• The definition of “extraordinary circumstances” where the carrier may not have to pay compensation for extended delays and cancelled flights.
• The passenger’s right to care during any period of delay, including the provision of meals, refreshments and overnight accommodation will start after two hours’ delay.
• Missed connecting flights: provision of assistance and care by the carrier to be provided after two hours, with compensation after five, nine or 12 hours, depending on the distance of the flight that is missed.
• Tarmac delays: passenger’s right to air-conditioning, water and use of toilets after one hour, plus right to disembark after five hours.
• There is a new proposal regarding no-shows: a passenger who fails to turn up for the outbound flight will not lose the right to use the unused inbound sector of the ticket.
• Re-routing: new rights for passengers to demand re-routing with a different carrier after a delay of 12 hours.
• Baggage claims: there must be a claim form at the airport.
• Right to information: the carrier has to provide affected passengers with information about delays and cancellations as soon as this becomes available.
• Right to free name change for misspelt passenger names up to 24 hours before departure.
• Mobility equipment, such as wheelchairs, may be valued free of charge at check-in, and the Montreal Convention limit will not then apply.
• Changes to complaints handling: the passenger should complain
The EC says the new regulations will clarify legal grey areas
within three months from the date of the flight and the carrier has seven days to confirm and two months to provide a full answer.
• The Civil Aviation Authority (CAA) to monitor compliance with these new rules and also to supervise complaints about baggage.
• For extended delays, the right of care and assistance, particularly provision of accommodation, should be limited to a maximum of three nights’ accommodation to a maximum of Ð100 per night.
For airlines, there are concessions contained within the new rules, namely the extension of the length of delay before compensation becomes payable from three, to a minimum of five hours. The right to care is limited to the costs of three nights’ accommodation, capped at Ð100. However, IATA expressed disappointment at the changes and pointed out that for missed connecting flights, the complete liability for compensation is with the
operator of the first flight to foot the entire liability bill for care and compensation. IATA is also unhappy about the new requirement to allow passengers to demand a seat with a competing airline after 12 hours, which may be at considerable additional cost. The change to provide that a no-show passenger should not lose the inbound part of the return ticket is a big change for the economy-restricted tickets pricing model. However, most consumers will welcome the ability to correct a misspelt name without being hit by large charges.
FOLLOWING DELAYED CONSULTATION with the trade, in late March 2013 the Office of Fair Trading and the Civil Aviation Authority produced guidance for the requirements of consumer law applicable to the sale and advertising of flights and holidays. They have produced both a short and long version of the guidance, which summarises consumer law across a variety of legislation. The guidance says that prices
must be displayed clearly and fairly and include all non-optional extras and provide a breakdown of the price. The consumer must be advised of the name of the airline they will be flying with and examples are given of bad practice in the context of the sale of flights and holidays which might amount to “breach of professional diligence”, “misleading actions”, “misleading omissions”, “aggressive practices”, and what might be potentially unfair terms. These new rules and guidance
show the importance to airlines, travel agents and tour operators of examining their marketing, advertising and sales methods to ensure they are meeting the correct standard. n
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