E.U. Passenger Regs Anger Airlines

The International Air Transport Association and the Association of European Airlines each voiced concern over new regulations that protect European air passenger rights in the event of lengthy flight delays, cancellations and denied boardings, calling them hasty, ambiguous and difficult to implement. The rules were adopted last month by the European Council and the European Parliament and will begin to be put into effect in the coming weeks, with full application by 2005.

Specifically, the new rules require airlines to first seek volunteers to reschedule to a different flight before involuntarily bumping any passenger and adjust upward the compensation levels for those who are denied boarding to "a dissuasive level" as high as e600. Some existing rules remain in place, including the requirement that airlines reimburse those who were denied boarding for meals and hotel accommodation.

Compensation levels for flight cancellations resulting from an airline's own decision—excluding weather and air traffic control issues—mirror those for denied boardings unless passengers are notified at least two weeks in advance or reaccommodated on flights "at a time very close to that of their original flight." In the event of such cancellations or other lengthy delays, airlines also are required to provide meals and refreshments, a hotel room if necessary and reimbursement of the ticket price should the passenger be delayed more than five hours.

The new E.U. regulations now cover scheduled and non-scheduled flights and air transport sold as part of a vacation package. They also encompass flights by European Community carriers from a third country to a member state.

IATA called the new regulations "complex and confusing," and called for revisions. "The spirit is more punitive than compensatory, and it will actually have a negative impact on consumer-friendly fares and global interline tickets," said Giovanni Bisignani, IATA director general and CEO.

IATA warned of conflicts at the airport between passengers, airlines and airport staff, as well as higher fares resulting from "financial compensation amounts that bear no relation to the ticket price." The association also objected to a "far-reaching stipulation" that could hold an airline financially responsible for an entire ticket when only one portion of the itinerary is delayed. "If airlines stop interlining to avoid this costly risk, the traveler will face repeated checkin and baggage claim procedures at each stop and higher fares," IATA said.

AEA termed the regulations "flawed" and noted that Germany, Ireland and the United Kingdom "either voted against the proposal or abstained."

Denied boarding has been an area of particular controversy as it is a necessary policy among major airlines, according to some industry officials. European regulators, however, estimated that one-quarter of a million air passengers are denied boarding each year at E.U. airports and that prior regulations in place since 1991 "do not effectively deter airlines from denying boarding."

"The passengers rights action is one of the major initiatives of this commission in order to put the citizens at the heart of European Union policies," said Loyola de Palacio, European Commission vice president for transport and energy. "Too many times, air passengers are victims of practices which deserve that they receive a fair treatment and proper compensation."