Europe's transport ministers have cleared the European Commission's (EC) passenger rights proposals, although largely accepting the reduced compensation levels already suggested by the European Parliament.
The EC has reacted favourably to the latest decision, despite some watering down. The proposals now go back to Parliament for a second reading and must then be agreed with the ministers.
Gilles Gantelet, spokesperson for EC transport commissioner Loyola de Palacio, says: "Of course we would have preferred more but we are happy that it doubles the existing compensation and it also extends the scope." Gantelet notes that a revision clause has been added that will enable the proposals to be revised "within four years".
The ministers proposed compensation in the case of denied boarding and cancellations of: €250 ($250) for flights under 1,500km (930miles); €400 for flights of 1,500-3,500km; and €600 for flights of over 3,500km. The levels are almost identical to those proposed by the parliament, except that they raise the level of compensation on short-haul flights from the original €200.
One key difference between the two sides, however, is that the council is proposing that charter carriers should be included in the legislation. After much debate, parliament suggested excluding charter carriers, except for seat-only traffic, arguing that their passengers were covered by existing legislation.
The Association of European Airlines (AEA) has made it clear that although the proposals will see compensation levels double, it can live with them. "The full-service airlines represented by the association will apply the new levels, while continuing their efforts to minimise what is already a very small number of affected customers," says AEA secretary general, Ulrich Schulte-Strathaus.
However, low-cost carriers argue that the proposals take no account of the level of fares being charged. "It is ludicrous not to have the level set in relation to the airfare price. It has to be in relation to what the customer has paid," complains Ryanair. "Airlines do not cancel flights lightly and this proposal would force Ryanair to pay an average of €300 in compensation when our average fare is less than €50."
COLIN BAKER LONDON
Source: Airline Business
