The European Commission has released public guidance indicating that airlines are not obligated to compensate passengers for flight cancellations caused by the Covid-19 outbreak under the European Union's Flight Compensation Regulation EC 261/2004 because it falls under the "extraordinary circumstance" condition.
"The Commission considers that, where public authorities take measures intended to contain the Covid-19 pandemic, such measures are by their nature and origin not inherent in the normal exercise of the activity of carriers and are outside their actual control," according to the document released 18 March.
In regard to flights cancelled indirectly by the coronavirus outbreak, such as because of weak demand, airlines also are exempt from flight disruption compensation.
However, the document noted airlines must continue to abide by other obligations under EC 261/2004 in the event of a cancellation. Airlines must offer to accommodate passengers free of charge if they cancel their flight. "This consists of meals and refreshments in a reasonable relation to the waiting time; hotel accommodation if necessary, and transport to the place of accommodation," according to the document. Furthermore, if a carrier cancels a flight, it must offer passengers the option to get a refund.
The International Air Transport Association (IATA), which had requested exemptions from EC 261/2004's obligations due to Covid-19, called the new guidelines "disappointing" and "unhelpful" and said they had "fallen short" of the relief they need.
One flight disruption compensation provider falls
Flight disruption compensation provider Service has shut down, according to a message posted on the firm's website by CEO Michael Schneider. "Despite partnerships with major brands such as Kayak and Microsoft, we have never turned a profit, despite a focus on revenue growth and cost cutting through software automation," he wrote. "We were in the middle of a fundraise when it collapsed two weeks ago, and then we were in the middle of an acquisition that collapsed last Friday due to everything going on with Covid-19 and the economy."