European airlines are fighting legislative proposals from Brussels which could see denied boarding compensation multiplied fivefold.
The European Commission is proposing that compensation rises to as much as €750 ($655) for flights under 3,500km (2,175 miles) and €1,500 for other flights. The present system is set at €75 for a 2h delay on flights up to 3,500km, up to a maximum €300 for delays of 4h over the same distance.
Other initiatives include a voluntary auction system, based on that which operates in the USA. European airlines had hoped that their voluntary passenger rights charter, launched in May, would head off legislation in this field.
Insiders say Brussels was influenced by figures obtained by the European Transport Commission showing the current level of compensation accounted for less than 1%of the benefits of airline yield management systems.
Source: Airline Business
