Pushed by airlines that claim they are penalized by having to pay out delay and cancelation compensation that is often more than the original fare, the EU may soon consider changes in the EU261 rule that mandates the compensation. The new Czech presidency of the EU has hinted it's open to discussion.
The rule, in place since 2005 (and still in place in the UK even after Brexit) calls for compensation if flights are delayed more than two hours or canceled within certain time frames. Compensation ranges fromn €250 to €600 depending on length of flight and length of delay. It applies to all flights by EU carriers to or from EU airports and to non-EU carriers on flights to the EU.
The airlines, and especially the budget carriers such as Ryanair, Easyjet and Wizz complain that the compensation is too big a share of their operating costs and have called for it to be drastically reduced. They also ask to be relieved of costs for circumstances they say they cannot control.
In the UK, last January, the Transport Secretary floated a proposal for the UK's version that would base compensation on what fare had been paid. It would extend compensation to include one-hour delays, but would cap the total, for delays longer than three hours, to the ticket price.
A study by UK consumer group Which? challenged the idea, pointing out that compensation is meant to cover the added costs that happen when flights are delayed, canceled or connections missed. The compensation rules also call for meals and if necessary lodging be provided.
Which? surveyed seven airlines, asking them to document their compensation costs, but none replied. The UK proposal is currently on hold.
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