Regulation 261/2004 – Denied-boarding, cancellation & delay – an airline perspective

1. Regulation 261/2004 – Denied-boarding, cancellation & delay – an airline perspective LTTL-Forum: Debating EU travel law close to where it is made, Leuven, 6 December 2011 Sebastian Dreyer, airberlin group

2. Passenger Rights: Are we the Problem or Part of the Solution? • The Aviation Industry faces on European and national level a longstanding discussion on tightening of consumer protection and thereby increasing the operating expenses and competitive disadvantages of European quality carriers. • Why is that so? We believe the reason is the already mentioned image problem: • Amongst others the airline industry is seen as too rich, treating their passengers badly and blocking any solutions to solve these “problems”: • Airlines cancel flights because of low SLF • Airlines pretend to have a “technical” instead of cancelling a flight • Airlines leave their stranded passengers alone • Etc. ….

3. Passenger Rights: publishedopinion = reality? • Reality and public attention do not fit together : Consumers place airlines in the upper forth (place 15 of 40)of the 4th Consumer Markets Scoreboard published by DG Health and Consumers, above all other transport services and especially during a very difficult time for the industry. „airlines show good results in spite of the disruptions of spring 2010”. • According to airberlin statistics 0,4 % of all passengers complain • And just 0,6% of all complainants are not satisfied by the customer service we offer and issue law suits • 0,0024% of all our passengers are NOT satisfied. • Consumer Markets Scoreboard – Making Markets Work For Consumers – SEC(2010)1257, 22/10/2010: (MPI –equal country weighting) • - Top 3: 1. Books, magazines, newspapers, 2. Cultural and entertainment services, 3. Personal care services • - Die drei am schlechtesten bewerteten Bereiche sind: second-hand cars, / clothing and footwear / meat. • Tram, bus, metro Platz 32; Eisenbahn Platz 46 – direkt vor den Gebrauchtwagenhändlern….

4. Passenger Rights: Are we the Problem or Part of the Solution? • But (more) figures show the (unknown?) side of the medal…. • In another survey business travelers were asked, if they are so disappointed with a mode of transport, that they decided never ever to use it again: • rail 36,7% • car 16% • airline 3,8% • The other way round, travelling with the mode of transport was excellent: • rail 65% • car 86% • airline 94% • By the way: these surveys include ALL air carriers…. Please see: NORDLIGHT research (2007): „Geschäftsreisen mit Bahn, Airline und PKW – Attraktivität, Bindung und Erfolgspotenziale“

5. Passenger Rights: We are Experts in service and customer satisfaction Why do Consumers vote Airlines in the upper forth of every ranking? • Because • the European aviation market is very competitive • the market is fully liberalized – just compare it to the monopolies in the railway sector • every customer has the choice between various airlines, various business models and other modes of transport • consumer protection and customer satisfaction are core elements of customer loyalty and competition for the passenger • so we have to be experts in service and customer satisfaction or we disappear from the market!

6. Thank you very much for your attention! Sebastian Dreyer Rechtsanwalt Senior Manager Transport Policy Air Berlin PLC & Co. Luftverkehrs KG Saatwinkler Damm 42-43 13627 Berlin Tel: +49 (0)30 3434 1038 Fax: +49 (0)30 3434 1109 sdreyer@airberlin.com