CAA consultation: Revisions to CAP1324 Policy for ADR Applicants and Approved ADR Entities- Which? response

Summary

• Which? welcomes the opportunity to respond to the Civil Aviation Authority’s (CAA) consultation on revisions to ‘CAP1324 Policy for ADR applicants and approved ADR entities’. We believe the current rules do not work in favour of consumers, and the changes proposed in this consultation do not go far enough in addressing the weaknesses of ADR in aviation.
• Which? believes that the CAA and the Government need to act on the recommendations set out in the Aviation Strategy and the recognition that this sector needs mandatory ADR membership in the form of a single statutory-backed ombudsman, enhanced standards, greater transparency and stronger oversight from the regulator.
• Which? is concerned that the amendments proposed in regard to “novel and complex cases” lack the passengers' perspective, and do not appear to offer certainty of outcomes and convincing evidence of how they will make ADR work better for consumers. These proposals continue to deepen the gap between complaint-handling bodies and consumers and risk diluting existing rules.
• We broadly welcome proposals to set rules enabling ADR schemes to hold post-decision reviews and to handle claims on a flight basis rather than a passenger basis. However, we are concerned that these practices are already available to ADR schemes and businesses, showing there is a poor track record of transparency of processes and decision-making.
• We agree that allowing ADR bodies to set up trust accounts to pay compensation directly to consumers is a positive step for consumers as it could speed up payments. However, it’s important that these arrangements are subject to ongoing monitoring and proper financial oversight from the CAA to safeguard consumers who can be confident they are engaging with a reliable and competent scheme.