Consumer protection groups, the European airline industry and EU member states have failed to agree on proposed new protections for air passengers, leaving regulations still stuck in legislative limbo after more than a decade.
Dissatisfaction with the draft text has now reached such a level that the industry has called for a pause in the negotiations.
“We urgently call for a 6-month pause to the deliberations until a thorough impact assessment of the proposed measures has been conducted,” reads a letter sent on Tuesday to the bloc’s transport ministers on behalf of the airline industry operating in Europe.
The Council presidency has warned that if a breakthrough is not made, the file could end up in conciliation.
According to an estimate produced jointly by Airlines for Europe, the European Regions Airline Association and the International Air Transport Association, the current draft text being discussed by EU transport ministers could increase the sector’s total annual costs by at least 40%.
The consequences, they said, would be “stark”, arguing that the sector would be forced to recover its rising costs through higher fares and that some routes might become economically unviable.
Stuck on the ground
The industry’s current leading concern is a proposal to raise the delay compensation threshold for passengers.
Currently, European air travellers are entitled to compensation of between €250 and €600 if a flight is cancelled or delayed by more than three hours. Under the proposal currently being discussed, airlines would have to pay between €300 and €600, depending on the distance.
However, airlines are pushing for the threshold to be raised to five hours, while the Council is exploring the possibility of maintaining it at three hours but reducing the amount of compensation passengers would be owed.
Even the three-hour delay requirement is still not to the liking of every EU transport minister, and consumer groups say that raising it would cut the majority of passengers off from compensation altogether.
“The average duration of a delay is comprised between two and four hours,” Steven Berger, senior legal officer at the European Consumer Organisation (BEUC), told Euronews. “Going above the current threshold to four hours would deprive 60% of passengers of their right to compensation.”
For these new protections to take effect, they require the approval of the member states (represented in the Council), the European Parliament, and the European Commission.
However, while MEPs are closely aligned with the demands of consumer protection groups, a qualified majority is still needed for the Council to negotiate with the other two institutions.
At present, member states have not yet agreed on the scope and threshold of certain consumer protections, such as compensation for flight delays and including a carry-on bag in the basic ticket price.
BEUC is also campaigning for a full ban on no-show clauses and for pre-filled refund and compensation forms in cases of travel disruption.
“Currently, only around one third of eligible consumers actually receive what they are entitled to, and these measures would significantly improve enforcement and help curb the harmful business models of claims agencies and certain airlines,” Berger stressed.
Inter-institutional negotiations between the Council, Parliament, and the Commission will resume on Monday.
Denmark, which currently holds the rotating presidency of the Council, has asked member states for “pragmatism”. The revision of EU rules is now in the second reading process, and failing to find a common position would only derail negotiations with the other two institutions.
An EU diplomat told Euronews that Monday’s talks are expected to be “difficult” given the strong pushback from “all sides”.
“These negotiations are not about the European Parliament and the Council finding common ground anymore,” they said.