Airlines to face legal challenge on compensation

THE growing use by airlines of an “extraordinary circumstances” clause to avoid compensating passengers for cancelled or delayed flights faces a legal challenge this week.

The case, which will be heard before the European Court of Justice, comes as the European Commission and consumer groups across the EU believe most airlines now invoke the clause when problems arise, regardless of the true cause for any delay or cancellation.

EU officials suspect airlines are citing “technical problems” to get around paying compensation and providing food, drink and accommodation to stranded passengers since the introduction of legislation giving improved rights to air passengers two years ago.

A report earlier this year by the European Commission expressed concern that airlines were abusing EU legislation, which allows them to avoid their legal obligations when flight schedules are affected by “extraordinary circumstances”.

It criticised Europe’s largest carrier Ryanair for being the worst airline for its “explicit non-compliance” with the legislation on air passenger rights.

Under EU regulations, “exceptional circumstances” include weather, industrial action and safety and security issues. Passengers on flights where cancellations and delays are due to operational reasons are generally entitled to compensation.

EU officials are also worried that enforcement bodies in member states are not doing enough to enforce the legislation.

The Commission for Aviation Regulation, the designated body in Ireland, has received more than 300 complaints against airlines from passengers since the regulations came into force in 2005. The vast majority related to disputes with Ryanair and Aer Lingus.

However, the CAR has no role in independently checking claims of “technical problems” by airlines.

The European Court of Justice will begin hearing a case on Thursday relating to air passenger rights which has been referred by the Danish courts.

It concerns a legal action by four Danish passengers against Scandinavian airline SAS for the cancellation of a February 2005 flight between Paris and Copenhagen due to technical problems.

SAS refused to pay compensation, claiming technical problems with an aircraft constituted “extraordinary circumstances”.

The ECJ has been asked to determine if such a construction can be placed on “extraordinary circumstances” within the meaning of the EU regulations. The Luxembourg-based court has also been requested to provide guidance on what proof should be provided regarding the nature and existence of such problems, especially where the only documentary proof is supplied by the airline itself.