The UK Civil Aviation Authority (CAA) has warned airlines they could face a “large increase” in the number of compensation claims for delayed and cancelled flights, following a landmark court ruling this week.
The warning from the British air regulator comes after holidaymaker Ronald Huzar demanded compensation for a 27-hour delay that he and his family suffered on the way home from a holiday in Malaga in October 2011.
The airline Jet2 said it did not have to pay because an “unforeseeable technical problem” had grounded the flight. But the court ruled in favour of Huzar.
Before the decision airlines could avoid paying out if the aircraft has a mechanical or electrical problem by arguing it’s considered to be “extraordinary circumstances’ beyond their control.”
This means that from now on, airlines can only cite technical faults as a reason for not paying compensation, if the fault was originally caused by an event that was “out of the ordinary”.
Appeal
The ruling is subject to an appeal from British based airline Jet 2 – It will take its case to the Supreme Court.
“If the Court of Appeal's decision stands, it will mean a large increase in the number of passengers entitled to compensation for delayed and cancelled flights," the CAA said in a statement.
Jet2 said that the latest judgement contradicted an agreement between European air bodies that unexpected technical defects were considered extraordinary for the purposes of compensation.
The ruling states travellers can make claims retrospectively, however the CAA said this decision does not affect claims that airlines rejected prior to Wednesday June 11, so “it’s unlikely that airlines will re-visit previously rejected claims”.
The CAA added that standard technical faults, such as a part on the aircraft failing before departure, will generally not be considered extraordinary circumstances.