Press release
Which? exposes flaws in government plan to weaken passenger rights and slash flight compensation payouts
9 min read
Rocio Concha, Which? Director of Policy and Advocacy, said: "It is completely unacceptable for the government to rush through plans to weaken passenger rights. Airlines are hiding the truth about the impact of compensation payouts on their business, and the recent chaos at UK airports and disgraceful treatment of travellers by some airlines shows why passenger rights desperately need to be strengthened. "The secretary of state has recently talked up the merits of a system of automatic compensation. While Which? backs any move that would make it easier for passengers to get the money they are legally owed for delays and cancellations, we are concerned it may be used to introduce a weaker system of redress by the back door. "The government must drop its ill-conceived plans to slash compensation rates for domestic flights and restore confidence in travel by giving the CAA direct fining powers so it can hold airlines accountable when they flout the rules."
ENDS
Notes to editors
Rights of replies Which? asked seven airlines for information on how many of their UK domestic and international flights were delayed by at least three hours or cancelled within 14 days of departure in any of the last four years; how many passengers have claimed for and received compensation and the total amount of compensation for EC261-related claims paid by the airline. British Airways and EasyJet declined to provide any data, citing commercial sensitivity. TUI did not provide any information. Jet2, Ryanair, Virgin Atlantic and Wizz Air did not reply. A spokesperson for British Airways said: "We always meet our obligations under EC261."
Additional information 1) Under EC261 rules, if a flight is cancelled, the airline must offer you the option of being reimbursed or rerouted (either on the next available flight or on an agreed date), and must also provide you with meals and telephone calls. 2) Under the same rules, if a flight is delayed by three hours or more in arriving at its destination, passengers can claim compensation which varies depending on the length of the delay and the distance they are travelling, and they could be entitled to compensation up to £520. The Department for Transport has proposed to scrap this framework for domestic flights that are delayed and offer compensation based on ticket price and the length of delay - similar to Delay Repay in rail.
- 25% of a ticket price for delays of over an hour and less than two hours
- 50% for delays between two hours and three hours
- 100% of the ticket price returned for delays of three hours or more
Joint letter Dear Secretary of State, We write as consumer groups and businesses looking to work with your Department and regulators to build the travel industry back better post-pandemic; and enhance consumer protections at a time when budgets are tighter and many are planning to travel for the first time since the pandemic began. We recognise the immense task you face working with regulators and industry to get the travel industry back on its feet. However, if the sector is to fully recover, the serious limitations and inconsistencies of the current regulatory and enforcement framework need to be addressed as part of your department's long-term vision, helping rebuild consumer and business confidence. In order to create a well functioning and competitive market, it is essential that travellers can book with confidence, are protected when things go wrong, and have high levels of trust in the regulators and businesses that serve them. We therefore warmly welcome the fact that your department has consulted on how consumer protections can be improved, including increasing the powers of the Civil Aviation Authority (CAA) and mandating alternative dispute resolution (ADR) in the aviation sector. We agree these reforms are needed and vital for building consumer protection and trust. However we are of the view that other proposed reforms do not demonstrate a complete understanding of how the sector works and what consumers need. The DfT proposals on compensation, as also set out in the Aviation Consumer Policy Reform consultation, would in our view be a retrograde step. We are concerned that overall the proposals will leave most consumers whose flights are delayed worse off compared to the current compensation regime; and crucially, they will significantly weaken the financial deterrent which is currently a key aspect of the legislation to prevent airlines from delaying, cancelling or overbooking flights for commercial reasons. We believe that it is imperative that consumers are offered the right protection that firstly ensures any disruption, inconveniences or losses they experience are minimised, and secondly, ensures that they are appropriately compensated when these do occur. The hollowing out or abandoning of the safeguards contained within the EC261 compensation regime would be a retrograde step, one that will lead to a further degradation in trust in airlines and hamper the recovery of the wider travel industry. We therefore urge you to urgently re-think these plans to change compensation rules under EC261, as presented in the consultation. For businesses and consumers, it is vital to have a clear strategy from the Government that takes into account the views of businesses and consumer groups operating in the sector. We urge you and your department to work closely with other departments such as BEIS and regulators like the CAA and CMA, to design a joined-up strategy; ensuring any future reforms of consumer rights in travel, including potential review of the Package Travel Regulations, create a coherent and comprehensible set of protections for consumers. We look forward to working with you to rebuild the travel industry and consumer confidence in it, and are determined to support the delivery of this. By working together we are confident that we can create a travel market that works for both businesses and consumers. We look forward to hearing your response. Rocio Concha Director of Policy and Advocacy
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