"Krone" Analysis

New Passenger Rights in the EU: What’s Coming, What’s Staying

Stranded at the airport? If you know your rights, you may sometimes be eligible for a refund.(Bild: Anton - stock.adobe.com)

Following the initial uproar over the curtailment of air passenger rights under pressure from major airlines, the EU Parliament held its final vote this evening. Krone+ highlights all the points—including those not yet known—where the Parliament was able to prevail over the Council and the Commission, and analyzes the changes in detail.

At the start of the negotiations, far-reaching changes to existing passenger rights were on the agenda. This was primarily due to pressure from Germany and France, which needed to appease powerful market players in the form of Lufthansa and Air France. These included, among other things, lower compensation payments, changes to the 3-hour rule for delays, broader authorization of no-show fees, and an expansion of the definition of “extraordinary circumstances” to include additional scenarios such as strikes or staff shortages.

Read below for all the points that affect your air travel and what’s changing:

• Compensation Amounts
  The tiers of 250 euros / 400 euros / 600 euros remain in place for flight distances between 1,500 and 3,500 kilometers. In other words: the amounts remain unchanged—there is no increase. Politically, however, this is an important outcome, as a reduction was prevented. Just a week ago, the EU Council of Heads of Government—or their representatives—was still demanding 250 euros for all cases. 

• Three-Hour Threshold
  The rule regarding delays remains in place. However, this was never stated so explicitly in the 2004 legislation. It arose more from practical application and European Court of Justice (ECJ) case law. In other words, existing case law is finally being explicitly codified. The Council wanted to raise the threshold to four to seven hours of delay.
• Name Changes on Tickets/Typos
  No more fees for administrative corrections or typos. Ryanair, for example, charges up to 110 euros for this. In other words: an improvement.

• Reduced compensation for early flights
  For an early flight that the passenger actually takes, there is a 50 percent reduction if the departure is less than two hours earlier. This is to be reduced to 25 percent. Current law provides for a 50 percent reduction in certain rebooking situations, but flights that depart more than one hour before the scheduled departure time are considered canceled. As a result, the passenger is entitled to compensation. In other words, under the new legal framework, this exception strengthens the airlines’ position.

• Extraordinary Circumstances
  The airline must still prove that the circumstance caused the disruption and that the disruption could not have been avoided by reasonable measures. A list will now precisely define these circumstances; previously, there were costly legal disputes. This means the list provides clarity and transparency. Unnecessary lawsuits by passengers will be prevented, and refusals by airlines will be reduced. In addition, the airline must provide passengers with a clear and understandable explanation in plain language, free of legal jargon. 

• Rights are codified
  Until now, many rights could only be ascertained through rulings by the European Court of Justice and were not codified. Now they are enshrined in law. This means there is less leeway for airlines to challenge existing law.

More rights in case of delays(Bild: stock adobe)

• International and EU law is enshrined
  EU law is clearly set forth in a regulation. This means airlines have fewer opportunities to hide behind non-EU countries and their case law or legal constructs.

• Flight Cancellation
  Passengers retain the right to choose: a refund, rebooking as soon as possible, or rebooking at a later date, as well as compensation, remain options. This means that the handling process and procedural clarity are improved in this regard.

• Flight Delay
  Information, assistance, a refund, or rebooking in the event of a long delay remain in place. Compensation is available for delays of three hours or more. This means that, contrary to drastic demands, the three-hour rule (see also above) remains in effect and is more clearly enshrined in law.

• Missed connecting flight
  Good news: If the airline cannot rebook a flight within five hours of the scheduled departure time, passengers must be offered a choice between a refund and rebooking. In addition, compensation is provided for a three-hour delay at the final destination. This means a significant improvement for passenger rights, and the five-hour rule is clearly defined.

• Rebookings by Airlines
  Alternatives via the same route, a different route, a different airport, a different airline, or a different mode of transportation must be offered. If no suitable option is available within three hours, the passenger may book on their own and receive a refund of up to 400 percent of the ticket price and booking fees. This means it’s more convenient for the passenger, as they can book faster and independently without suffering any financial loss.

• Stopover Flights
  A passenger may refuse a rebooking if it would result in the loss of a stopover they organized themselves. Until now , this was not clearly regulated. This means better protection for more complex trips.

The right to bring one personal item on board is being introduced.(Bild: AFP/OSCAR DEL POZO)

• Refund
  Refunds must be issued within seven calendar days via bank transfer (unless another method is expressly agreed upon); this includes the ticket price and booking fees. While this obligation already exists, it is now defined in greater detail. This means: Passenger rights have been improved through bank transfers and the inclusion of all booking fees. Additionally, rigid and prescriptive standard procedures will be prohibited.

• Vouchers as Compensation
  May only be issued with the passenger’s express consent and without restrictions. They must also not result in any disadvantage compared to a cash refund. This means: Finally, there is a lower risk that passengers will be fobbed off with vouchers that require verification.

• No-show fees
  These are prohibited for return flights but remain in effect for outbound flights. This represents an improvement, although this pricing practice—with all its drawbacks—remains in place for outbound flights. 

It’s a sad reflection on the system that parents had to pay extra just so their family could sit together. We fought to make sure this practice is a thing of the past.

Roman Haider, zuständiger EU-Parlamentarier (FPÖ)

Bild: EU-Parlament

• Carry-on Baggage Price Comparison
  Platforms like Skyscanner and others must now display prices that include carry-on baggage by default. That wasn’t the case before. This means: Finally, more transparency and a fair price comparison.

• Personal Item/Carry-On Baggage
  There will be a right to bring one personal item on board (bag, backpack), along with clearer information regarding carry-on luggage. This doesn’t necessarily constitute an improvement, however, because efforts to establish a comprehensive right to free carry-on luggage have failed.

• Children Seated Next to Parents or Guardians
  Airlines are no longer allowed to separate children from their parents or guardians in order to enforce a “family fee.” This was not previously regulated. This means a concrete benefit for families and children.

• Compensation through intermediaries
  The airline remains responsible; intermediary platforms now have their own obligations regarding information and complaints. This means: Until now, passengers were effectively shuffled back and forth in practice, but that is changing now.

Conclusion: Passenger rights have indeed been significantly strengthened. Several provisions that, from an Austrian perspective, would have led to a significant reduction in the previous level of protection were amended or dropped during the course of the negotiations, according to the office of the responsible State Secretary Ulrike Königsberger-Ludwig (SPÖ).