EU court to hear airline case

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By Gemma Lougheed
- 9th January 2006

The European Court of Justice is set to give a Tuesday judgment as to whether airlines will be obliged to respect air passenger rights.

The case will address airline fears on EU laws that could insist operators provide food, shelter and compensation for people stranded by delays or cancellations.

The legislation is also aimed at stamping out the practice of over-booking flights, with low budget airlines among the major stakeholders in the case.

International Air Transport Association (IATA), which represents 270 EU, and non EU airlines, and the European Low Fares Airline Association (ELFA), representing interests of European low-fare airlines originally challenged the validity of UK rules implementing the regulation in national courts.

The ELFAA is hopeful for a positive result, saying they have made the case and look forward to the court’s decision.

“This regulation will do very little if anything to reduce the number of long delays and flight cancellations effecting passengers since the vast majority of causes are outside of the control of airlines,” said Stefan Vilner, President of ELFAA.

“Passengers will ultimately be denied the choice of having low fares as the cost of air transport will rise and certain routes prone to delays may be cancelled.”

In July 2004 the UK High Court referred the case to the ECJ with a request for prompt action. The regulation became law on February 17 2005.

IATA estimates that the total cost to the industry of this regulation tops €600 million per year.

“The recommendations could not be more frustrating,” said Giovanni Bisignani, IATA's Director General and CEO.

“We remain confident in our arguments that the regulation conflicts with the Montreal Convention 1999 which modernised the protection of consumer interests with respect to the aviation industry.”

“We trust that the wisdom of the ECJ judges will arrive at a final decision that reflects a better understanding of the issues at stake,” said Bisignani.

“We cannot accept a regulation that makes us responsible for areas completely outside of our control like snowstorms, strikes or inefficient air traffic control infrastructure.

“Penalising airlines provides no help to consumers. It adds cost to the industry.”

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