TOM GILL LONDON
Europe is rapidly catching up with the USA with its own passenger rights proposalsFirst it was the turn of US politicians to get fired up about passenger rights. In fact, it looks as though the major US carriers have pre-empted that initiative with their own voluntary Customers First plan which was put into practice at the start of this year. Now it is Europe's turn. Only this time it is the European Commission (EC)which has come up with a wide-ranging set of proposals on customer service and rights.
The EC's consultation document, Air Passenger Rights in the European Union was being sent out by the transport directorate just as the USplan was coming into action. Comments are due back by the start of March. There is no shortage of material on which to comment.
Elements of the European policy appear to be modelled on the US initiative, with talk of a Passengers' Charter, echoing a number of the provision in the US Customer Service Commitment.
In her forward to this consultation document, Transport Commissioner Loyola de Palacio (see page 32) is careful to pay homage to the consumer advantages bestowed by the European Union's deregulated market. She accepts that passengers generally now have the ability to "vote with their feet", but adds: "There are some instances where the passenger cannot send a message by taking their business elsewhere."
These instances originate from "certain business practices, contractual conditions and service standards that are common to many, if not all, airlines," Palacio argues, and problems related to these issues that "cannot be avoided by switching between different carriers."
Palacio's team in Brussels is also concerned that airlines remain the first point of contact for any passenger complaints. However, in what will no doubt be music to the ears of airline executives, it is clearly placing the burden of responsibility on all the parties in the supply chain. Many of the reasons that "the air transport system is not living up to passengers' expectations," according to Palacio, are "related partially or completely, to other subjects other than airline, like for instance airports, ground handling companies, air traffic management centres."
Compensation claims
Under these rules airlines could technically pass on compensation claims to other guilty parties, although some carriers are sceptical about the practicality of such an idea, given the lack of progress in other related areas, such as Europe-wide rules for airport charges.
A clear commitment to first assess the costs of any new measures, both in terms of carriers' competitiveness and their possible negative impact on air fares, will no doubt also reassure the airline industry. As will the EC's emphasis on its openness to consider a wide range of possible instruments to implement the agreed changes. These will range from binding legislation through to much softer measures such as information campaigns, Commission and Council Recommendations. Voluntary codes and even simply additional research are also suggested methods of achieving progress on some issues.
The consultation document covers numerous areas of the product and service - from information provision, baggage, tariffs, delays and in-flight health - that in the EC's view, national and current Eu Consumer protection legislation has failed to address to the satisfaction of air passengers.
Brussels also puts forward proposals to amend rules governing business practices strongly connected to the growth of global airline alliances and franchise operations. These include provisions for more information and greater guarantees on codeshare partners and tradable frequent flyer points.
The document also addresses the "lack of passenger rights" relating to the basic contract between the airline and its client - specifically, policies for delays, cancellations, non-transferability of air tickets, lost tickets, excess baggage charges and disabled passenger rights. The EC's aim here is to close the gap between the conditions of carriage embodied in IATA's "Recommended Practices 1724" and the EU's own law written into its Directive 93/13 on unfair contract terms in consumer contracts.
Transparency
But perhaps the most significant proposals relate to information provision and transparency.
The EC has proposed the possible establishment of a "European Consumer Report", which would provide regular statistics on delays, lost baggage, denied boarding and complaints, much of which are already made public by the US DoT.
Clearly, with appropriate and timely information freely available, there will be a higher chance of a successfully implementation measures that, for example, depend on identifying responsibility for problems such as delays or lost baggage.
More importantly, publicly available comparable industry-wide statistics are also likely act to "name and shame", as the delays statistics now produced by the Association of European Airlines (AEA) have done.
A European Consumer Report has strong backing in some European airline quarters. Ulrich Schulte-Strathaus, vice- president of international relations at Lufthansa is "definitely" supportive and believes it could possibly be developed as an extension of the AEA's reporting.
In addition to providing information to the consumer, Hans Ollongren, SAS director of European and public affairs, sees the European Consumer Report as a benchmarking mechanism which would produce an "incentive for companies to challenge" each other. "You don't want to in the 25th place, you naturally want to be in the top three," he says.
Ollongren is also favourable to a US-style Passenger Charter, in which, according to EC proposals, airlines would register and provide rapid responses to complaints and make clear details such as carriers' policies concerning bumped passengers . "I am familiar with the US charter and that doesn't seem unreasonable," he says.
The EC's proposal to use data on fares to monitor how intra-European competition is affecting prices and to pre-empt the need for a complaint before investigating possible infringements of competition law, will clearly provide yet more information and transparency for the European passenger. The EC is already said to have the powers to do this, so this proposal presumably indicates an offer to start making use of them.
It is under the Commission's proposed rules on air fares that one of the most "interventionist" proposals appears - a requirement on airlines to make a certain number of tickets available at the lowest advertised fare. This measure, however, appears to stand little chance going of any further, because even some of the consumer groups are opposed to it. The UK's Air Transport Users Council (AUC), for one, "doesn't endorse it", says the organisation's industry affairs adviser, Simon Evans.
Overall, however, consumer groups and airlines appear to be positive about the EC's agenda in this area. That the AUC "is fundamentally pleased that the EC is taking the initiative to raise consumer issues in the air transport field," is perhaps not so surprising as the new attitude of Europe's airlines.
In the past, airlines would have fought to stop any hint of such an initiative. That has all changed. The AEA says that it is supports the move "at a political level", although it would still prefer a US-style voluntary code. As much as anything, European airlines are concerned that they are not saddled with burdens that would disadvantage them against their US rivals.
US Customer Service Commitment
Offer the lowest fare available Notify customers of delays, cancellations and diversions in a timely manner Make every reasonable effort to to return checked-in bags within 24h Allow reservations to be held without payment for 24h Provide ticket refunds within seven days for credit card purchases and 20 days for cash purchases Properly accommodate disabled and special needs passengers Meet customers' essential needs during long on-aircraft delays Handle "bumped' passengers with fairness and consistency, disclosing relevant policies and procedures Disclose travel itinerary, cancellation policies, frequent flier rules and aircraft configuration Ensure domestic codeshare partners provide comparable service and policies Be more responsive to customer complaints with a 60 day limit for written responses
The EC's Air Passenger Rights in the EUconsultation document - highlights
The contract
The conditions of carriage: Boost passenger rights in case of delays/cancellations, non-transfer ability/loss of tickets, excess baggage charges. Delays, cancellations and denied boarding: Extend responsibility for delays to airline agents or subcontractors, including airports and ATC providers. Airlines to charge costs of compensation claim from responsible party. Lost/damaged baggage: Provide passengers with EU airlines a "minimum level of assistance" if baggage delay/loss results in hindrance of intended travel plans.
Airline business practices
Codesharing and franchising: Revise CRS Code of Conduct to tighten rules on disclosure of codeshares or franchises. Oblige EU carriers to ensure codeshare partners worldwide observe ICAO minimum safety standards. Frequent flier programme: Allow trading of frequent flier points. Aircraft cabin conditions: Pursue further research into possible health risks of air quality/radiation, cramped seating and the inadequacy of child seat belts. Enhance the authority for Commander and enlarge minimum crews to cope with air rage.
Source: Airline Business
