Improved compensation for air travellers

AIR passengers who have flights delayed or cancelled can claim compensation of up to 600 under laws being drawn up by the EU.

Under the regulations, which will be introduced later this year, on-the-spot compensation will be almost doubled. Passengers will also have a legal right to food and accommodation, or a replacement flight.

Current levels of compensation, set in 1991, include €150 for short flights and €300 for distances up to 3,500km. However, from this year passengers can claim 600 for flights of more than 3,500km, €400 for flights of 1,500km to 3,500km €250 for short flights.

The compensation guidelines are aimed at introducing common standards of compensation for all passengers affected by overbooked or cancelled flights.

However, low-fare airlines have warned ticket prices will soar because of the new laws.

Ryanair, together with a coalition of four other low-fare airlines, is arguing that the laws are unfair and will hit budget carriers much more heavily than traditional airlines. They claim the laws will cost the airlines almost €55m a year in compensation, more than three times the value of the actual cancelled tickets.

In a strongly-worded lobbying document, the low fare airlines industry said the laws will be anti-competitive and unfair and lead to increased fares.

They claim the vast majority of flights are delayed by factors outside its control such as airport problems and said as little as 9% of flights are cancelled by the airlines themselves for commercial reasons.

Ryanair has also called for the publication of information on the performance of airlines, which they say will show traditional carriers are responsible for most delays, particularly commercially-motivated ones.

Aer Lingus has broadly welcomed the new levels of compensation.

The Oireachtas committee on European Affairs, chaired by Fine Gael TD Gay Mitchell, has decided to pass on the legislation for further scrutiny to the committee with responsibility for transport.

“We need to strike a balance between what’s good for the competition, and while also ensuring adequate protection for passengers,” he said. Mr Mitchell said the new scrutiny procedures, which mean all pending European legislation is inspected by the Irish parliament beforehand, gives Irish representatives a valuable chance to vet any new laws which affect the country.

The Government has already voted for the new laws in principle, at a meeting of EU transport ministers last month. The compensation levels will become legally binding on all airlines in the EU once the European Parliament passes the bill.