FLASH
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The Council and the European Parliament remain deeply divided on how to reform the current system, and have only until Tuesday to reach an agreement.
Policymakers, consumer organizations and airline lobby groups have clashed for more than a decade over the protections that should be offered to passengers. That clash could end this week.
At the heart of the dispute is the question of whether passengers should continue to receive compensation of between 250 and 600 euros for flights delayed by at least three hours, alongside a series of new rights for passengers and new obligations for airlines.
Many parties consider the current system problematic: passengers often do not receive the compensation they believe they are entitled to, while airlines complain that they are forced to pay significant amounts.
However, if Tuesday's talks fail, the current system will remain in place.
The European Commission proposed reforming the system in 2013, suggesting raising the minimum threshold for compensation to at least five hours of delay, as part of a broader reform package that would allow airlines to pay less compensation while strengthening passenger rights in other areas.
The proposal was not received with enthusiasm.
“We were accused from all sides,” said Siim Kallas, the former European Commissioner for Transport who proposed the initial reform in 2013. “Some thought it was too pro-airline, while others thought it was not pro-airline enough.”
After more than a decade of little progress, reform efforts gained new urgency last year, when member states struggled to reach a common position. They also decided to shorten the negotiation period and set a deadline for reaching an agreement, so that the reform would not fail. This, however, caused a conflict with the European Parliament.
The member states' position foresees increasing the minimum delay threshold that obliges airlines to pay compensation. From the current three hours, it would increase to four hours for flights up to 3,500 kilometers or within the EU, and six hours for longer flights.
The new text also imposes an obligation on airlines to automatically provide a form for compensation claims in the event of flight cancellations, which would increase the likelihood that passengers will file claims.
“Only 38 percent of passengers entitled to compensation receive it,” says a joint letter from consumer organizations, citing a European Commission study. “Most passengers do not even file complaints,” they add, citing “lack of information and cumbersome procedures” as the main obstacles preventing passengers from exercising their rights.
However, airlines worry that the increase in the number of compensation claims will increase their costs.
EU member states argue that the reform creates "a better balance between a high level of protection for passengers and the preservation of air connections and fair competition in the aviation sector."
MEPs responded by supporting a reform proposal of their own, where preserving current rights is a red line.
The European Parliament wants to maintain the existing three-hour delay threshold for compensation, supports an automated claim form and also wants passengers to be entitled to take larger hand luggage on board for free, in addition to small bags that fit under the seat. Low-cost airlines say this would undermine their business model and increase ticket prices.
After years of demanding reform, airlines are now fearful of its potential outcome. They initially urged policymakers to halt negotiations and conduct an impact assessment. In recent weeks, they have stressed that no deal is better than a bad deal.
The current regulation “already adds around 8 euros to the price of each passenger’s ticket,” the three main airline lobby groups said. “The compromise on the table today will increase costs by around a third, without addressing the real causes of most delays,” they added, referring to a draft agreement reported by POLITICO.
Even consumer organizations and companies that help passengers claim compensation, which receive a percentage of the compensation won, have opposed any reform proposals that they say would weaken current rights.
Despite the gap between the two sides, the time to reach an agreement is limited under the so-called conciliation process. Under this procedure, each side has an equal number of negotiators and a six-week deadline, which can be extended by two weeks, to reach an agreement. If this does not happen, the legislative process is considered a failure.
The official deadline for completing the process is June 15, but due to technical issues related to the legal translation of the text, people involved in the negotiations told POLITICO that Tuesday is actually the realistic deadline for reaching an agreement.
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