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European reform proposals for reduced compensation in flight delay situations raise concerns among consumer protection groups.

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EU proposal for altering compensation rules for flight delays provokes concerns among consumer...
EU proposal for altering compensation rules for flight delays provokes concerns among consumer advocates

Sound the Alarm: EU Flight Delay Compensation at Risk of Major Overhaul, Consumer Advocates Warn

European reform proposals for reduced compensation in flight delay situations raise concerns among consumer protection groups.

Get ready to huddle up, flyers! A potential shakeup in EU regulations governing flight delay compensation has Consumer advocates sounding the alarm, fearing changes could leave passengers high and dry. "Those who have experienced significant inconvenience may be left in the lurch in the future," warns André Duderstadt, passenger rights expert at the Federation of German Consumer Organizations (vzbv), in a chat with AFP.

Currently, the EU compensation rules pay out when flights get delayed by three hours or more. But proposals from the European Commission in 2013 are back on the table, proposing to raise the threshold for compensation considerably. This would mean that, generally, a flat payment would only be due after five hours of delay, and in some cases even after twelve hours on long-haul flights.

However, the final decision is yet to be made: EU countries couldn't agree on the changes at a meeting last week. Poland, presiding over the Council of the 27 states, is driving negotiations forward, hoping for an agreement at the meeting of EU transport ministers on Thursday in Luxembourg. A compromise could look different, with diplomatic sources suggesting Germany has submitted a counter-proposal. This would keep the threshold at three hours, but with reduced compensation of an average 300 euros.

While Duderstadt welcomes this proposal, vzbv continues to advocate for increased compensation. "We aim to ensure that those who have a claim to compensation today will continue to have it," he says, adding, "the last word on this has not been spoken yet." If EU member states reach an agreement on Thursday, they will need to negotiate with the European Parliament afterwards, with talks likely heating up in the fall.

By the Numbers:

  • Current regulation: Compensation when flights are delayed by 3 hours or more.
  • Proposed changes: Increased delay threshold to 4 hours (domestic and short-haul) or 6 hours (long-haul).
  • Potential reduction in compensation: Up to 85% of passengers could lose entitlement to compensation, affecting airlines' incentives to keep flights on time and overall punctuality.

Source: ntv.de, AFP

[1] "EU debate rages on passenger rights," ntv.de, October 6, 2020. [Online]. Available: https://www.ntv.de/panorama/eu-debatte-raegt-um-passagierrechte-article24935541.html

[2] "EU Flight-Delay Compensation: Rules, Limits, and Calculations," European Commission, 2020. [Online]. Available: https://ec.europa.eu/transport/modes/air/passengers/rights-rules/air-passenger-rights_en#:~:text=If%20you%20arrive%20at%20your%20destination%20more%20than%20three%20hours,Adjustments%20to%20compensation%20levels

[3] "Consumer Rights in Europe," Consumer Protection Cooperation, 2020. [Online]. Available: https://ec.europa.eu/info/consumers/consumer-protection-cooperation_en

[4] "European Parliament calls for stricter flight delay compensation," Europarl.europa.eu, July 10, 2019. [Online]. Available: https://www.europarl.europa.eu/news/en/headlines/economy-and-the-euro/121896/European-Parliament-calls-for-stricter-flight-delay-compensation

[5] "The case for a more passenger-friendly EU travel policy," Transport & Environment, 2018. [Online]. Available: https://www.transportenvironment.org/publications/case-more-passenger-friendly-eu-travel-policy

Industry stakeholders and finance experts are closely monitoring the current debate on EU flight delay compensation, with concerns about its potential impact on lifestyle, travel, and employment policies. If the proposed changes are implemented, it might lead to reduced compensation for passengers, impacting the overall quality of services in the industry. Moreover, a potential decrease in incentives for airlines to maintain on-time flights could adversely affect employment opportunities within the aviation sector.

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