The essence of the dispute is whether passengers should continue to receive compensation of 250-600 euros for flights delayed by at least three hours, as well as several new passenger rights and airline obligations.
Many believe that the current rules are flawed: passengers often do not receive the money they believe they are entitled to, while airlines complain that they are forced to pay large sums of money.
However, if Tuesday’s negotiations fail, the current system will remain.
Not 3 hours, but 4-6 hours delay
In 2013, the European Commission proposed to reform this system by extending the compensation threshold to at least 5 hours and including it in a broader reform package that would allow airlines to pay less while strengthening passenger rights in other areas.
This was not met with great enthusiasm.
“We were accused from all sides,” said Siim Kallas, former Transport Commissioner who proposed the initial reform in 2013. “Some people thought it was too favorable to airlines… others thought it was useless for airlines.”
After more than a decade of little progress, reform efforts gained new relevance last year when countries came close to reaching a common position. They also tried to shorten the negotiation period and set a final deadline for reaching an agreement to prevent the reform from collapsing. However, this caused conflict with the Parliament.
In the countries’ position, the minimum delay threshold from which airlines must pay compensation to passengers is increased from the current three hours to four hours for flights up to 3500 kilometers or within the EU, and up to six hours for flights beyond this limit, reports Politico.
Automatic claim form
The new text obliges airlines to provide an automatic claim form for compensation for canceled flights to increase the likelihood that claims will be submitted.
“Only 38% of eligible passengers receive compensation,” states a joint letter from consumer rights advocates citing a Commission study. “Most passengers do not even file complaints,” they added, citing “low awareness and complicated procedures” as the main obstacles preventing passengers from exercising their rights.
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However, airlines are concerned that the increased number of claims will raise their costs.
EU countries stated that this reform ensures “a better balance between a high level of passenger protection and maintaining connectivity and a level playing field in the aviation sector.”
MEPs want to keep the current 3-hour delay threshold
MEPs responded by supporting their own reform proposal, in which the protection of current rights was described as a red line.
MEPs want to keep the current three-hour delay threshold for compensation, agree on an automatic claim form, and also want passengers to be able to bring larger carry-on bags and small bags under the seat on flights free of charge.
Low-cost airlines say this will change their business model and increase ticket prices.
The official final deadline for the agreement on the process is June 15, but due to technical issues related to the legal text translation, people involved in the negotiations told Politico that Tuesday is the real final deadline to reach an agreement.
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