Airlines association IATA has warned that a European Parliament plan to change EU261 compensation rules could lead to higher fares and “reduced choice” for travellers.
The EU is currently considering changes to the EU261 rules, which stipulate how passengers are compensated when affected by airline delays and cancellations. Currently, passengers are entitled to compensation when their flight is delayed by three hours or longer.
The EU Council, which represents the governments of the 27 member states, has proposed extending the three-hour compensation rule to delays of four hours for short-haul and to nine hours for long-haul flights.
But the European Parliament wants to maintain the three-hour compensation rule for delays, as well as allowing passengers to take a cabin bag onboard for free.
IATA warned that if the parliament’s plan went ahead it would act as a “reverse Robin Hood”, with fares rising as a result. It also emphasised that only 1 per cent of flights suffer a delay of three hours or more.
“There is no evidence passengers want these provisions and much less that they are willing to pay higher fares as a result,” said IATA in a statement.
Wille Walsh, IATA’s director general, added: “Everyone knows there’s no such thing as a free lunch. Similarly, there is no such thing as a free bag or free compensation thresholds.
“They are imposing things people haven’t asked for, and don’t want to pay for unless they choose to. Given the choice, passengers would prefer to pay for a less gold-plated compensation scheme in exchange for lower fares. MEPs are meddling in business and operational issues they don’t understand.”
IATA is calling for the parliament’s proposals to be modified and for the EU to “uphold” the council’s plans to extend the current flight delay thresholds.
“The best guarantee of great customer service is choice and competition delivered by a thriving air transport market,” added Walsh.
IATA pointed out that the growth in European air connectivity has “slowed” in recent years, particularly for key markets such as France, Germany and the Netherlands.
The association is also calling for the removal of airline passenger taxes imposed in some EU countries, as well as changes to the rules mandating the increased use of alternative aviation fuels to make them more affordable.
“The combination of these additional costs is making the profit margins and viability of many new routes or adding frequencies highly questionable, reducing choice for consumers,” argued IATA.