JUSTIN WASTNAGE / LONDON
Associations say compensation law could cripple carriers
Four airline associations have joined forces in an eleventh-hour bid to persuade European transport ministers to reject final approval of proposed passenger compensation legislation that they say could cripple the continent's carriers.
The directors general of the Association of European Airlines (AEA), European Regions Airline Association (ERA), International Air Carrier Association and the International Air Transport Association have sent a joint letter to Italian transport minister Pietro Lunardi requesting a briefing ahead of conciliation meetings in September.
They say the compensation proposals could add about €1 billion ($1.13 billion) to European airlines' annual costs. Lunardi will represent transport ministers as European governments try to reach a compromise with the European Parliament over changes to the bill.
"We believe that the council [of transport ministers] is not aware of the impact, both economic and operational, of the bill," says Andrew Clark, ERA's director of policy. ERA says the policy is unacceptable despite changes made by the European Parliament in July to permit advanced-notice cancellations and define some exceptions (Flight International, 8-14 July).
The association aims to bring transport ministers' attention to impact studies it has carried out and to present some of the technical difficulties the legislation will cause for airlines.
A senior AEA source says the proposal in its current form could end regional feeder flights, because small carriers would avoid being held responsible for subsequent mainline carrier delays. The bill would change ticketing operations, effectively ending flexible tickets for all but full-fare business class, because carriers would not risk factoring in no-shows in ticket prices.
The European Commission says it will act as a "facilitator" in talks between the council and parliament and that hopes of returning to its original proposal, which suggested much higher compensation rates and other measures designed to prevent denied boarding, are unrealistic.
Source: Flight International
