On Friday 8 May, the European Commission published guidelines for the transport and tourism sectors, focusing mainly on aviation and the consequences of a possible shortage of aviation fuel in the event of a prolonged blockade of the Strait of Hormuz.
These recommendations are in line with the ‘AccelerateEU’ plan, presented at the end of April in response to the war in the Middle East and its repercussions on fuel prices (see EUROPE 13854/2). They specify the circumstances in which airlines may be exempted from certain obligations or passenger compensation.
Protection for travellers. The Commission points out that passengers affected by delays and cancellations retain their rights to reimbursement or re-routing, assistance at the airport and, in certain cases, compensation.
With regard to last-minute cancellations, airlines will only be exempted from paying financial compensation if they can demonstrate that the cancellation is the result of ‘extraordinary circumstances’. The message sent out by the European Commission is clear: a local fuel shortage preventing a flight from operating can fall into this category, but not the soaring price of aviation fuel.
For several weeks now, transport operators have been warning of the risk of shortages between now and the summer (see EUROPE 13851/24). The European Commission claims to be monitoring the situation of the EU’s strategic fuel reserves and commercial stocks.
“We hold weekly meetings on oil, involving the industry [...], and receive relevant information from airlines and other stakeholders. The latter are not obliged to share this information, but they are participating in our overall coordination effort”, said Anna-Kaisa Itkonen, spokeswoman for the European Commission.
“The volatility of fuel prices is inherent to the airline industry. Companies manage this factor through hedging strategies and long-term planning. At this stage, it does not constitute a structural threat to holidays or travel habits”, according to the Association of Passenger Rights Advocates (APRA), interviewed by Agence Europe.
The organisation welcomed the guidelines published on Friday. “The document states that general market conditions, such as fluctuations in the price of fuel, do not relieve airlines of their responsibility towards passengers. We therefore welcome the fact that the European Commission is ensuring that the rights of travellers are guaranteed”, the APRA said.
Flexibility for airlines. The guidelines also specify the circumstances in which certain provisions of the ReFuelEU Aviation Regulation may be relaxed. This imposes a fuel surcharge of 90%, which applies when safety regulations require additional fuel to be carried from the departure airport. In order to avoid the cancellation of certain routes, this obligation may be lifted if it risks reducing available stocks and compromising subsequent flights.
As far as slots are concerned, carriers will also be able to be exempted from the usual rules on the use of landing and take-off slots in the event of supply difficulties. In addition, the Commission is calling on Member States to make full use of the clauses provided for in public service contracts when shortages or an exceptional spike in fuel prices make certain routes unprofitable at the regulated tariff.
While welcoming these flexibilities, Airlines for Europe (A4E), which represents around 70% of European air traffic, believes that longer-term measures will be needed. In its view, the Commission’s guidelines “provide a degree of certainty by clarifying the existing rules. In these exceptional times, however, the status quo is simply not an option”.
American aviation fuel to support. Furthermore, “the clarification by the European Aviation Safety Agency (EASA) that the Jet A can be used safely is a welcome initiative that removes uncertainty and eases the pressure on the system”, welcomed A4E.
EASA has published an information bulletin for the aviation industry to ensure the safe use of fuel from the United States, which differs from the Jet A-1 predominantly used in Europe (see EUROPE 13861/2).
With regard to other modes of transport, also affected by the rise in fuel prices, the Commission would point out that it has already temporarily relaxed the rules on State aid (see EUROPE 13847/3), allowing Member States to provide financial support to sectors affected by the crisis.
To consult the European Commission’s guidelines: https://aeur.eu/f/luh
To consult the EASA bulletin: https://aeur.eu/f/lui (Original version in French by Juliette Verdes)