New EU compensation rules hit no-frills airlines

Wednesday, 16 Oct, 2003 0

While passengers may be pleased, the no frills airlines are less than happy about new air travel compensation legislation that has been passed by the EU.

The new rules, which will come into effect next year, give specific levels of compensation to customers who cannot board their flight because of overbooking by the airline. The changes, first reported by TravelMole in July, have now also been extended to include charter flights.

European Commission transport vice-president Loyola de Palacio said: “This is a big step ahead in our effort to put the citizens at the heart of EU policies. Too many times, air passengers are victims of practices which deserve that they receive a fair treatment and proper compensation: today’s agreement paves the way for completing and strengthening the existing rights.”

Under the new rules, airlines will be obliged to ask for volunteers to give up their seats in exchange for advantages before they deny passengers boarding against their will. If they do have to deny boarding they will have to pay compensation of either 250,400 or 600 euros depending on the length of the flight along with a full refund.

The same levels of compensation and a full refund must also be given to passengers whose flights are cancelled unless they are informed two weeks in advance or else given an alternative flight at a time very close to their original departure.

For long delays customers will now receive meals and refreshments, and hotel accommodation if they have to stay overnight. If they are delayed for over five hours they will also receive a refund.

The new law will apply to passengers departing from an EU airport and also to those flying into the EU on a European carrier.

No frills airlines had wanted compensation to be linked to the price of a ticket as the compensation levels could exceed the original fare paid by the passenger. They say that fares will now be forced to rise.

The new rules must now go back to the European Parliament and member states for final agreement, expected by the end of the year.