Airlines to learn likely fate of challenge

AIRLINES including Aer Lingus and Ryanair will find out this week if they are likely to be successful in overturning new EU legislation that forces them to pay improved compensation to disgruntled passengers.

Airlines to learn likely fate of challenge

The European Court of Justice will give a preliminary ruling on Thursday in a challenge brought by airlines against an EU compensation scheme for passengers who experience delays, cancellations and overbooking on flights.

The regulation, which came into effect on February 17, gives airline customers an improved legal entitlement to financial compensation, re-routing, meals and accommodation.

If successful, airlines would not be obliged to provide free food and drink and refunds above the cost of a ticket.

In Ireland, the Commission for Aviation Regulation has already received more than 150 complaints since it took responsibility for disputes between airlines and customers in June.

The International Air Transport Association, which represents 270 airlines including Aer Lingus, and the European Low Fares Airline Association, which represents 10 budget carriers including Ryanair, claim the regulation is invalid on several grounds.

The two airline representative bodies also argue that the measure will lead to higher air fares as they impose a disproportionate level of compensation compared to the actual cost of airline tickets.

The IATA and ELFAA initially challenged the legislation in the UK High Court which then referred the case to the European Court of Justice in Luxembourg.

An advocate general will deliver an opinion on the legal challenge on Thursday. Although the legal opinion is not binding on the Court's formal decision, it is a reliable indicator of the ultimate ruling by the ECJ.

The Court has already instructed airlines to implement the legislation with regard to compensation awards, pending the final outcome of the case.

The Commission for Aviation Regulation has criticised the attitude of both Aer Lingus and Ryanair which account for the vast majority of customer complaints to fulfilling their obligations under the EU directive.

Ryanair is also under investigation by the UK Civil Aviation Authority over the manner in which it is responding to disputes with its customers.

Since February 17, passengers who are "bumped off" flights due to overbooking are entitled to compensation of €250-€600, depending on the length of the journey. Airlines are also obliged to provide customers who experience cancellations and delays over a fixed period of time with meals, drinks and phone calls, as well as overnight accommodation and refunds in certain circumstances.

According to the European Commission, authorities for processing complaints across the EU are handling ten times as many cases since February. Problems relating to delays and cancellations account for over 70% of all complaints on average.

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