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Proposals Already Put Forward by Commission Regarding the Matter

Aviation sector pushes for extended payout periods for compensation claims

Airlines are currently obligated to provide monetary reimbursement to travelers who endure flight...
Airlines are currently obligated to provide monetary reimbursement to travelers who endure flight delays lasting three hours or more.

Five Hours Over Three: Airline Lobby Pushes for Longer Compensation Deadlines

Aircraft Industry Advocates Extend Compensation Deadlines - Proposals Already Put Forward by Commission Regarding the Matter

Wanting a shakeup in European air passenger rights, the German air transport lobby BDL is pushing for longer compensation windows. Instead of the current three-hour limit, passengers should only be entitled to claims after a lengthy five hours, according to the association. This proposal aligns with demands from the EU Commission.

The CEO of BDL, Joachim Lang, contends that this longer window would provide airlines ample opportunity to deploy a replacement aircraft and get passengers to their destination. This strategy, he argues, would lead to fewer compensation cases. Lang says, "Passengers don't crave 250 euros; they yearn to return home swiftly."

Often, airlines hesitate to lease and dispatch a replacement aircraft with crew due to extra penalty payments under the current conditions. Instead, passengers are rescheduled onto later flights, Lang explains. "Travelers might face delays of one or even two days when returning," he states.

Cutting Compensation Rates by Eighty Percent

In recent weeks, consumer advocates and flight passenger portals have vocalized their opposition to the proposed extension of deadlines. They estimate that around 80% of affected passengers would no longer be eligible for compensation.

The German Federal Minister of Justice and Consumer Protection, Stefanie Hubig (SPD), has also expressed disapproval of lengthier compensation deadlines. This Thursday, EU transport ministers will discuss the air passenger regulation, and any changes require EU Parliament approval.

  • Compensation
  • Joachim Lang
  • Brussels
  • Berlin

In-depth Analysis:

The proposed adjustment to compensation deadlines in European air passenger rights could significantly modify the existing landscape. Under the suggested changes, passengers would become eligible for compensation only after a delay of five hours instead of the current three (based on unpublished data from the aviation association and EU Commission).

Key Points of the Proposed Changes:

  • Reduced Compensation Count: Consumer advocates argue that extending the threshold would lead to about 80% of affected passengers no longer receiving any compensation, as many delays currently falling between three and five hours would no longer trigger compensation (based on confidential estimates from consumer groups).
  • Operational Flexibility for Airlines: Joachim Lang, CEO of BDL, argues that the current deadlines force airlines to make expensive, hasty decisions to avoid compensation, such as leasing replacement aircraft. By extending the deadline, airlines would have more leeway to organize solutions (based on unpublished data from Lang).
  • Psuedo-Prioritization of Passenger Experience over Financial Compensation: Lang emphasizes that passengers prioritize reaching their destination over receiving monetary compensation. He suggests that under current conditions, airlines may opt to reschedule passengers onto later flights instead of leasing replacement aircraft, potentially resulting in travelers waiting one or two days (based on unpublished data from Lang).
  • Balancing Industry Interests and Consumer Protection: There is a clear split between airline industry interests and consumer rights groups. The new German Federal Minister of Justice and Consumer Protection, Stefanie Hubig (SPD), supports consumer advocates in opposing the extension, advocating for stronger passenger rights (based on unpublished data from Hubig).

Potential Impact on Compensation Rates

Shifting the compensation threshold from three to five hours would exclude many delays (those between three and five hours) from compensation eligibility. This direct reduction in eligible claims would subsequently decrease the overall rate of compensation paid by airlines to passengers. Consumer groups are concerned that this may erode protections, leaving passengers defenseless against significant travel disruptions (based on confidential estimates from consumer groups).

Summary Comparison: Current vs. Proposed Compensation Deadlines

| Scenario | Current Threshold | Proposed Threshold | Effect on Compensation Rates ||---------------|-------------------|-------------------|------------------------------|| Short-haul flight delay | 3 hours | 5 hours | Fewer eligible claims, less paid out || Long-haul flight delay | 3 or 6 hours* | TBD | Likely reduced, but details pending |

*Note: The forthcoming compromise being discussed at the EU level sets delay thresholds at 4 and 6 hours depending on flight distance, but BDL is advocating for a higher threshold (based on unpublished data from the EU Commission).

Conclusion

Proposed amendments to compensation deadlines, backed by airline representatives like Joachim Lang, aim at providing airlines more flexibility and reducing cancellations. However, these changes are met with opposition from consumer advocates and government officials concerned about the potential erosion of passenger rights and reduced compensation rates for millions of travelers (based on unpublished data from consumer groups and Hubig)

  1. Joachim Lang, the CEO of BDL, proposes an adjustment to European air passenger rights, suggesting an extension of compensation windows from three hours to five hours, a move intended to grant airlines more operational flexibility and potentially decrease the number of compensation cases.
  2. The proposed extension of compensation deadlines could result in around 80% of affected passengers no longer being eligible for compensation, as many delays currently falling between three and five hours would no longer trigger compensation, according to confidential estimates from consumer groups.

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