EU govts approve air passengers rights law

EU governments gave their final approval today to legislation giving airline passengers more rights to compensation when hit by delays, cancelled flights or overbooking.

The green light given by EU foreign ministers means that the new passenger rights will come into effect in 2005 across the 15 nation bloc and the 10 members that join May 1.

The European Parliament gave its go-ahead in December.

The law will force all airlines flying to and from EU airports to pay €597 to passengers bumped off long-haul flights, €399 for medium-length trips and €250 for short hops. The current maximum is €299.

Compensation payments will also apply to passengers whose flights are cancelled because of too few tickets sold or for other commercial reasons, although not those hit by bad weather, technical problems or strikes.

Delays of at least two hours – for whatever reason – will also trigger automatic compensation, such as free meals and phone calls.

If a flight is at least five hours late, a passenger must be offered either a refund of the full ticket price if the flight no longer serves any purpose - such as getting somewhere in time for a meeting – or rebooking onto the earliest flight home.

Airlines will automatically have to offer a free hotel room for passengers delayed overnight.

European airlines were reluctant at first to endorse the new rights, especially budget carriers that fear the increased compensation could force up their ticket prices which, in many cases, are lower than the compensation levels.

EU officials however, argue the new rules would increase pressure on airlines to limit the practice of overbooking – selling more tickets than seats available - as well as to improve on-time service.