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European airlines argue that if the ruling on passenger compensation for long delays is allowed to stand, it will cost them up to €5 billion ($US6.8 billion) annually. Carriers insist that this will increase ticket prices. The original EU law was clear on compensation for flight cancellations but not delays. In November of 2009, the EU court ruled that the impact of a long delay – in this case 3 hours or longer – is just as high as that of a cancellation and thus merits the same compensation. Airlines have objected to the ruling which calls for payments ranging from €250 to €600 ($340 to $820) per passenger, regardless of the ticket price.
The Association of European Airlines which represents 36 major airlines on the continent issued this statement: "As far as the members of AEA are concerned, we believe that our customers are already well protected and very well cared-for", said the association's Secretary General Ulrich Schulte-Strathaus. "On the rare occasions where journeys are disrupted – for whatever reason – a responsible airline will do whatever is necessary to minimise the impact on its passengers, knowing full well that they can always take their business elsewhere, in a competitive marketplace".
Airlines in Europe are asking EU regulators to either amend the law or take it back to the courts for another review which would stretch the debate for another two years with no clear outcome, according to a report in The Wall Street Journal.
What are your thoughts on compensation for delayed flights? Should the airlines be trusted to "do the right thing" when your flight encounters a long delay? Do you agree with the EU courts that a delay of 3 or more hours is just as bad as a cancellation?
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