Luxembourg, 08/09/2005 (Agence Europe) - Advocate General Geelhoed has suggested that Regulation (EC) No. 261/2004 on compensation and assistance to air passengers denied boarding or whose flights were delayed or cancelled, dismissing all the arguments put forward by the International Air Transport Association (IATA), the European Low Fares Airline Association (ELFAA) and Hapag-Lloyd Express GmbH (the company guaranteeing the payment of fines imposed on ELFAA). The three bodies challenged the UK implementation of the Regulation at the High Court of Justice (England and Wales), Queen's Bench Division.
The High Court referred a number of questions to the European Court of Justice about whether the Regulation was contrary to the Montreal Convention regulating the kind of claims for damages that can be taken to court.
In a press release, Leendert Geelhoed argues that the three different levels of compensation outlined in the Regulation essentially update figures from a previous Regulation to take account of inflation, 'are proportionate to the inconvenience suffered by the passengers and therefore fair'.
Similarly, the obligations placed on air carriers (to provide immediate aid to stranded passengers) 'are a suitable and proportionate means of reducing the trouble and inconvenience to passengers resulting form delays or cancellations.'
Leendert Geelhoed also rejects the argument by ELFAA of discrimination against low-cost and premium-fare carriers and also against airlines as opposed to other forms of transport: 'airline companies are free to choose their own business models and to set their own prices. A decision by an airline to pursue a low-fares model should not result in them being privileged under the law. Rules on consumer protection must be of general application irrespective of the price paid for the ticket.'
On whether the Regulation is contrary to the Montreal Convention, the Advocate-General says 'the Regulation is not contrary to the Convention, but rather, complementary. The Montreal Convention regulates the kind of claims for damages that can be brought before the courts, whereas the Regulation seeks to assist stranded passengers, regardless of whether there is any damage or fault on the part of the carriers.
Regulation (EC) 261/2004 of the European Parliament and the Council entitles passengers to re-routing to their final destination or reimbursement of the ticket, care (meals, hotel accommodation and phone calls or e-mails) and compensation varying in terms of length of flight from EUR 250 to EUR 600.
IATA represents 270 airlines, both European and non-European. ELFAA represents 10 low-fares airlines.
The Court of Justice may issue its final ruling early next year. It is free to follow or reject the Advocate-General's advice.