Airlines Demand Reform: EU's Outdated Passenger Compensation Criticized

IATA's Director General Willie Walsh criticized the EU's passenger compensation policy, highlighting competitiveness issues facing European airlines. Challenges include outdated EU261 regulation, strikes, emission rules, and aircraft delivery delays. Walsh advocates for a revised compensation scheme and a common EU airspace to reduce cancellations and improve operations.

In a critical appraisal of the European Union's approach toward airline competitiveness, Willie Walsh, the Director General of the International Air Transport Association (IATA), has pointed out deficiencies in the bloc's compliance with passenger compensation policy.

European airlines face numerous challenges, including air traffic control strikes predominantly occurring in France, delayed deliveries of fuel-efficient Boeing aircraft, engine issues, and the pressure of adhering to costly EU emission regulations, unlike their foreign competitors. The outdated 20-year-old EU261 passenger rights regulation remains a significant hurdle.

Compensation for flight delays, according to Walsh, unfairly penalizes 99% of passengers as less than 1% of flights face substantial delays. IATA had pushed for increased delay thresholds, a view in part acknowledged by member states but contested by the European Parliament. Airlines have also been urging the creation of a common EU airspace level to prevent flight disruptions due to localized air control strikes, with Walsh criticizing the lack of political momentum to enact such solutions.

(With inputs from agencies.)