Airlines Pushback: The Fight Over EU Compensation Policies

Willie Walsh criticizes EU's outdated passenger compensation policy, as airlines face challenges like strikes and aircraft delays. EU institutions negotiate reforms, but Walsh argues the current scheme unfairly penalizes mostly on-time flights. Proposed changes include adjusting delay thresholds and revising baggage rules.

Willie Walsh, director general of the International Air Transport Association (IATA), expressed concern over the European Union's lack of action regarding airline competitiveness, particularly criticizing the current passenger compensation policy.

European airlines have been grappling with various challenges, including air traffic control strikes, engine manufacturer issues, and delayed delivery of new Boeing aircraft. With the EU institutions negotiating reforms to the EU261 passenger rights regulation, Walsh labeled the policy as outdated.

Walsh argued that the compensation scheme unfairly impacts passengers, as less than 1% of flights are delayed beyond three hours. Proposed changes include increasing the delay thresholds, but disagreement remains on issues such as luggage allowances.

(With inputs from agencies.)