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We support this revision of Reg. 261 where

Revision of the Air Passenger Rights legislation Industry views Anca Apahidean – Area Manager Eastern Europe Gdansk, 15 November, 2013.

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We support this revision of Reg. 261 where

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  1. Revision of the Air Passenger Rights legislationIndustry viewsAnca Apahidean – Area Manager Eastern EuropeGdansk, 15 November, 2013

  2. About usThe International Air Transport Association (IATA) is the trade association for the world’s airlines, representing some 240 airlines or 84% of total air traffic.Common position together with AEA, ELFAA, ERA, IACA.

  3. We support arevision of Reg. 261 We support this revision of Reg. 261 where • it clarifies • it improves application • it gives real additional rights

  4. Few examples: Positive elements – real additional passenger rights • Care is provided after 2 hours instead of 2/3/4 hours depending on the length of the flight (Art.6.1) • Better and more timely information to be provided to passengers (Art.14) • Possibility to correct a spelling mistake (Art.4.5)

  5. We support this revision of Reg. 261 where • it re-balances passenger rights with airline obligations

  6. Few examplesPositive elements – a balanced approach • “Trigger” points introduced for length of delay - even if they should be aligned with the trigger points related to the level of the compensation in Art.7 (Art.6) • five hours for all intra EU flights and other flights of less than 3500km • nine hours for flights between 3500 and 6000kms • twelve hours for longer flights. • Time limitation for assistance when event due to extraordinary circumstances (Art.9.2)

  7. We do not support this revision of Reg. 261 where • it creates “false” passenger rights

  8. Few examplesElements with negative impacts on passengers (1) • Jeopardizing safety - intrusion into safety related operational decisions • Diversions are not cancellations (Art.2 l) • Documentedtechnicalproblems are extraordinarycircumstances (annex) • Limiting pricing and contractual freedoms and increasing fares • Partial ban of no-show policy (Art.4.4) will lead to higher prices, encourage overbooking and have a negative impact on the environmental performance of airlines

  9. Elements with negative impacts on passengers (2) • Jeopardizing interlining and regional connectivity • Definition of a delay at final destination and notion of “journey”: unintended consequences • Missed connection (Art.6a) • Unfair treatment of carriers • Contradiction with industry practices • Connecting flights with transfers outside of the EU • Extension of scope / inapplicability

  10. The purpose of the no-show policy • Pricing is based on “directional imbalances” and market demand • The No show policy is a pro-consumer practice to ensure low prices! = more demand in summer to visit Marseille than Brussels: the price of the ticket for this destination is higher BRU MRS = less demand in summer to visit Brussels than Marseille: the price of the ticket for this destination is lower MRS BRU = more demand in summer to visit Marseille than Brussels: the price of this return journey is higher BRU MRS BRU = less demand in summer to visit Brussels than Marseille: the price of this return journey is lower (may be lower than one way BRU-MRS) MRS BRU MRS

  11. Considerations on delays • European Commission • The explanatory memorandum to the original proposal shows that the EC’s intention was not to apply a dissuasive compensation for delays (it distinguished between denied boarding/cancellation on the one hand and delay on the other on the basis that the carrier is always responsible for the former and not always for the latter) • Council • The observations of the Council in the TUI/easyJet/BA/IATA CJEU (challenge to Sturgeon) go as far as saying that it is very doubtful that they would ever have accepted a regulation that imposes compensations for delays. • European Parliament • The observations of the EP in the TUI/easyJet/BA/IATA CJEU case (challenge to Sturgeon) show that cancellations and delays are not to be treated in a similar way because they are completely different situations /  loss of time is not what compensation is for since under a cancellation, carriers can offer an earlier re-routing flight/ delays can be created in the interest of passengers and carriers should therefore not be penalized for them.

  12. Thank You

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