Lawyers puzzle over new EC rules

Industry braces for legal challenges as changes to regulations governing passengers' rights come into force

European Commission lawyers are trying to define under which "unforeseencircumstances" they expect airlines to be forced to pay out compensation to passengers as the industry braces for an expected onslaught of legal challenges to controversial passenger rights rules.

Launching the new regulations last week at Paris Charles de Gaulle airport, Jacques Barrot, EC transport commissioner, said: "Competitiveness and competition in the air sector go hand in hand with guaranteed passengers' rights."

The new legislation establishing pan-European rules on compensation and assistance to passengers in the event of denied boarding, flight cancellation and long delays entered force late last week. Airline groups are predicting a steep rise in ticket prices if they have to pay out in the event of delays caused by third parties or "acts of God". The legislation excludes pay-outs in the case of "force majeure", but does not offer any definition of what is and what is not included.

Lawyers representing low-fare airlines expect test cases as passengers attempt to pursue the airlines through national courts. Flight International has learned that the EC has a list of hypothetical court cases that it would expect airlines to lose.

For example, delays due to aircraft technical faults would not be an acceptable excuse, as airlines are expected to be able to position spare aircraft for use within the 2h delay window, but airport closures on anti-terrorist grounds will not leave the carrier liable, a source in the EC says. If the new rules survive a challenge from the International Air Transport Association, lawyers expect the definitions of when an airline is liable to be established through a series of court cases.

Notes: €1=$1.28. 1km=0.54nm. Source: European Commission

JUSTIN WASTNAGE / LONDON

Source: Flight International