Saturday, March 21, 2015

Airlines threatened with legal action if they don't shape up on compensation to customers hit by flight delays

Three major airlines have been told to shape up over compensation to customers hit by flight delays or find themselves in court.

Jet2, Wizz Air and Aer Lingus are not abiding by consumer law in their handling of passengers affected by flight disruption, and have not changed their policies despite extensive discussions, the Civil Aviation Authority claimed today.

The CAA said Jet2 and Wizz Air have failed to satisfy the regulator that they are consistently paying compensation for disruption caused by technical faults, despite a Court of Appeal ruling clarifying that airlines must do so.

Moreover, the CAA claims the same two airlines are imposing two-year time limits for passengers to take compensation claims to court, despite a Court of Appeal ruling that passengers should have up to six years to take a claim to court.

Finally, Jet2 and Aer Lingus have failed to give satisfactory evidence that they proactively provide passengers with information about their rights during disruption in line with the requirements set out in European regulation.

The CAA announced it has launched enforcement action against the carriers and will seek a court order unless they comply. But one fo the airlines involved issued a strong denial of the CAA's claims.

Jet2 said the claims were 'materially inaccurate', with a spokeswoman adding that, 'Jet2.com is paying compensation for disruption caused by technical faults in line with the landmark Huzar ruling and have already confirmed this to the CAA. The compensation is up to 400 euros (£289) per person even though our average fare is £80.

'Airlines are entitled to limit to two years the period in which claims can be made by contractual limitations and these have been upheld by the court on a number of occasions. Jet2.com strictly abides by court decisions and is acting in accordance with the law, not contrary to it.

'No enforcement action has been taken. The CAA is obligated to consult with Jet2.com before considering enforcement action. This process has not started. Given the misapprehensions of the CAA, Jet2.com expects that following the mandatory consultation process the CAA will not wish to take the matter any further.' 

The aviation watchdog has carried out a six-month review of airline policies in relation to supporting passengers during disruption, including their approaches to paying flight delay compensation and providing information to fliers about their rights.

Travellers assuming they will get a payout after suffering long delays often find airlines employing various tactics to wriggle out of compensation.

Rather than admit to a technical fault for which they would have to pay out, passengers have received letters explaining their delay was due to a 'hidden manufacturing defect'.

Others claim they are simply being ignored by airlines, which refuse to reply to letters.

Under EU Regulation 261/2004, passengers are entitled to up to £465 in compensation when their flight lands at their destination more than three hours late — unless the delay is caused by an extraordinary circumstance, such as bad weather or crew strikes.

Previously, airlines routinely refused to pay out for delays caused by a technical fault, claiming they counted as extraordinary events. Last year, two landmark Supreme Court rulings, which followed a six-year legal battle, opened the floodgates for two million holidaymakers to make claims.

The court declared that carriers should pay out when a delay was caused by a technical fault. It was thought this could leave the airlines with a bill of around £3.89billion for cases dating back six years.
Andrew Haines, chief executive of the CAA, said: 'Airlines are well aware of the support they must provide when there is disruption and passengers have every right to be disappointed that a small number of airlines are not complying with the Court of Appeal rulings and continue to let people down in this way.

'Since the law was clarified last year, we have been active to ensure airlines are applying consumer law appropriately and I warmly welcome the response of those airlines that have changed their policies as a result of this work.

'Our job is not done until all airlines can demonstrate they are providing care, assistance and compensation as required by law.

'While we have no power to secure redress for individual consumers, we are determined to stand up for passengers and are taking this action to safeguard their rights, making sure all airlines consistently provide their passengers with the support and compensation they are legally entitled to.'

Original article can be found here: http://www.thisismoney.co.uk 

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