IATA LEGAL SYMPOSIUM 13-15 February 2011 Vancouver, Canada 14 February 2011 EU Passenger Rights Update Peter Macara Clyde & Co. LLP
261/2004 POST STURGEON - ENGLISH REFERENCE FOR CLARIFICATION AUGUST 2010 Joint judicial review application TUI, BA, easyjet and IATA v. UK CAA High Court referred following questions to CJEU: Does Regulation require compensation to be paid to delayed pax? If not, are provisions of Regulation invalid breach equal treatment? If Regulation does require compensation, are provisions on cancellation/delay invalid? If compensation not required, does Sturgeon ruling have any effect? UK proceedings stayed. Others not, but Courts may be persuaded to stay whilst position unclear. Position probably different in Germany. However, encouraging decisions recently from Germany and the Netherlands
261/2004 IN CRISIS SITUATIONS COMMISSION S INFORMAL GUIDELINES SEPTEMBER 2010 Compensation not payable because of extraordinary circumstances including where cancellation for directly linked cause (e.g., out of hours crew) Right to re-routing still applies. Sanctions for failure to offer may be inappropriate Right to care and assistance applies until passengers request reimbursement Where airline tried to contact passenger but passenger made own arrangements, normal inference that opted for reimbursement Care and assistance expenses to be paid up to proportionate and reasonable limits If delay on-going, pax who elected for re-routing may opt for reimbursement
261/2004 - RECOVERY OPTIONS AND NEXT STEPS Costs can be significant e.g., one EU airline cancelled 3,000 flights during recent snow disruption. Nothing to prevent airlines trying to recover costs Difficulties of recovery from airports. Unclear obligations, if any, and restrictive conditions of use Commission s further communication on application of Regulation expected shortly unlikely to involve immediate proposals for revision DG Move has suggested greater consistency among modes. New provisions on carriage by water may give a hint of things to come
REGULATION 1177/2010 ON RIGHTS OF PASSENGERS TRAVELLING BY WATER Similar to 261/2004 but with some significant differences: PSO services may be exempted PRMs liability for damage to mobility equipment Limit to accommodation costs - 80 per night for 3 nights No obligation to provide accommodation during weather disruption Right to reimbursement where departure delayed 90 minutes Carrier must pay compensation in event of delay on arrival: 25% of ticket price for shorter delays 50% of ticket price for longer delays Similar provisions planned for bus and coach passengers
1107/2006- STEER DAVIES GLEAVE REPORT FOR COMMISSION SEPTEMBER 2010 Significant variation between carriers. EASA should be involved to provide greater consistency Loss of and damage to mobility equipment is a significant issue. Is it baggage? Most airports published quality standards meeting ECAC minima. Few external checks Airport charges vary considerably. Airlines criticise airports poor consultation Few complaints received (most in the UK) and no sanctions yet imposed Monitoring by national enforcement bodies has been limited Suggested changes to Regulation
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