Less compensation

EU Plans to Undermine Air Passengers’ Rights

Delays are annoying. Now, changes to the rights are expected.(Bild: Anton - stock.adobe.com)

Bad news ahead of the vacation season: The EU wants to significantly weaken air passenger rights. The aviation lobby has negotiated lower compensation, longer waiting times, and other cutbacks. The final major meeting takes place on Tuesday. There, individual countries are putting up resistance, including Austria.

Summer vacation is starting, and there’s nothing but trouble with flights. But thanks to comprehensive passenger rights, customers can count on compensation. At the EU level, however, some changes are now planned. The final major round of negotiations between the Parliament, the Council, and the Commission will take place on Wednesday. A compromise is expected by June 15. This isn’t the first attempt; the EU has already tried twice to curtail passenger rights but failed.

Compensation to be cut by a third
According to the EU Commission, compensation for major delays of over three hours is set to decrease. Currently, passengers receive 250 euros for flights up to 1,500 kilometers, 400 euros for flights between 1,500 and 3,500 kilometers, and 600 euros for long-haul flights (see fact box). The compensation rates are set to be reduced to one-third in each case. As a result, consumers will be left to bear more of the costs associated with delays in the future.

Reimbursement for alternative flights will also be capped. Until now, airlines have been required to cover all costs for alternative transportation; in the future, this will be limited to four times the original ticket price. So, for example, someone flying to the U.S. for 400 euros will receive a maximum reimbursement of 1,600 euros, meaning they could end up out of pocket by hundreds of euros.

Compensation set to decrease

Under current law, passengers are entitled to the following for delays of more than three hours:

• 250 euros for flights up to 1,500 km
• 400 euros for flights between 1,500 and 3,500 km
• 600 euros for flights of 3,500 km or more

Under the current proposal, the three-hour threshold remains, but the compensation amount is set to drop significantly:

• 83 euros for flights up to 1,500 km
• 133 euros for flights between 1,500 and 3,500 km
• 200 euros for flights of 3,500 km or more

Speaking of waiting: The waiting time for alternative flights is also increasing. Passengers are now required to actively inform the airline that they wish to continue their journey and then wait up to three hours for an alternative offer. This alternative no longer has to be the fastest possible or equivalent option. A different airport, a different mode of transport such as a train, or a completely different route should be possible. The three-hour limit is generally not being challenged; here, the Commission accommodated the Parliament.

Consumers are often left empty-handed
So much for the changes to compensation, but in the end, many passengers might still be left empty-handed. According to the EU plans, staff strikes, pilot absences, or crew member absences would then automatically be cases where no compensation is due. This is also meeting with resistance from unions across Europe: because they lose a major leverage point if compensation—which is a sensitive issue for airlines—is no longer a consequence of labor disputes.

“No-show fee” as a “sophisticated cartel tool”
Added to this is a “no-show fee” for failing to show up. From the perspective of many passengers, this is probably the most tolerable aspect, but it also helps airlines that deliberately overbook flights. If a passenger doesn’t show up, it doesn’t result in any disadvantage. In the future, however, a fee will still be charged. “Nothing more than a sophisticated cartel tool,” says Roman Haider, former FPÖ member of the National Council and now a Member of the European Parliament: “Cheap tickets to destroy regional competition, and then demanding subsidies from taxpayers on top of that. This practice has no place in a free market economy.”

Austria Opposes Weakening of Rights
The airlines justify the reform by citing the need for greater competitiveness to keep pace with non-European airlines. At the EU level, the Baltic states, the Czech Republic, and Poland are the main supporters of the reform. Austria, Germany, Portugal, Slovenia, and Spain, on the other hand, are putting the brakes on it.

If the airline causes problems, it is unacceptable for travelers to end up footing the bill.

Staatssekretärin Ulrike Königsberger-Ludwig

Bild: Eva Manhart

“I expect Europe to stand by its citizens and not just by the airline lobby. If the airline causes problems, it is unacceptable for travelers to end up footing the bill,” says State Secretary Ulrike Königsberger-Ludwig (SPÖ), responsible for consumer protection. It remains to be seen exactly what changes travelers can expect.