The European Commission has angered Europe's airlines by threatening to bring in a liability regulation unless more carriers sign up to Iata's voluntary agreement.
The European legislation would override the inter-carrier agreement on unlimited liability, which Iata is hoping to bring into effect by 1 November to replace the outmoded limits of the Warsaw Convention. More than half of Europe's carriers have signed the Iata agreement, but Brussels policy makers are still not satisfied. 'Virtually all European carriers will have to sign the Iata agreement for us to lay ours aside,' says a Commission source.
The Commission's threat should find some resonance at two of Europe's majors: Lufthansa and Air France are still dragging their feet over signing the voluntary accord. The EC proposal contains two significant differences to Iata's, requiring a carrier to pay victims US$63,000 within 10 days of any accident and allowing a claimant to file a lawsuit in their country of domicile.
The Association of European Airlines favours Iata's more flexible approach. 'Airlines can offer much more on a voluntary basis. We want to rework a rigid set of rules, not replace them. What's more, we need to maintain uniformity and not set EU carriers apart,' says AEA's manager of legal and social affairs, Marc Frisque.
Iata is also unimpressed. 'The demands are unrealistic and unnecessary,' says Iata's general counsel, Lorne Clark. He is confident the Commission will abandon its proposal, and aims to draft a code of conduct next year to avoid further regulation.
Lois Jones
Source: Airline Business
