Low-cost passengers ‘deserve less compensation’
Philip Hammond told The Financial Times that EU laws obliging airlines to pay out up to €600 compensation for a three-hour delay are “disproportionate” if the fares cost just €60.
His proposal is being seen as an olive branch to the airline industry, which reacted with fury to air passenger rights legislation enacted in the wake of the volcanic ash cloud crisis.
Under EU regulation 261, airlines were obliged to cover all expenses incurred by passengers who were left stranded by the six-day closure of European airspace in April.
Ryanair led the charge in opposing the policy, with chief executive Michael O’Leary insisting that it was “ludicrous” for his airline to pay out €3,000 compensation to passengers who paid just €30 for their ticket. Other carriers agreed that the law was being misappropriated.
Echoing that stance, the Transport Secretary told The Financial Times: “It’s right that airlines have to compensate passengers if they have dumped them or denied them boarding, but a three-hour delay on a low-cost flight cannot fairly give rise to €600 compensation.”
However, while Mr Hammond is reviewing the rules surrounding short delays for passengers, he appears to have rejected calls for a bank-style bail-out of airlines over volcanic ash.
“The consensus among the larger countries is that while there is a degree of sympathy for the airlines, fiscal conditions just do not favour [a bail-out],” he said. “I know … they’re asking for cash compensation, but at least that [passenger rights review] will provide some relief for them.”
The government’s stance will be welcomed by some low-cost carriers, but it is likely to incense consumer rights groups who have long called for greater protection of passengers.
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