Flights: Countries want to increase passenger rights – 06/18/2023 – Market

In recent months, the US and Canada have announced measures to expand the rights of air passengers, which has generated criticism from companies in the sector. They fear that the new rules will encourage other countries to follow suit, which would increase operating costs globally.

In the United States, the White House announced plans in May to force companies to provide food, lodging and rebooking in cases of prolonged delays.

“I know how frustrated many of you are with the service you receive from US airlines. Our priority has been making travelers better off,” President Joe Biden said in announcing the plan. The final measurements have not yet been released.

It is the first time that the United States will have such rules. Currently, most large companies in the country offer some compensation in case of cancellation, such as cash payment or hotel stay, but without any legal obligation.

The new American rules must determine what constitutes an avoidable cancellation or delay, and establish compensation for delays of more than three hours.

“You deserve more than just having the ticket price [devolvido]. You deserve to be compensated in full. Your time matters, the impact on your life matters,” Biden said.

In April, neighboring Canada also proposed expanding passenger rights, such as making delay compensation the default regardless of the cause.

“There will be no more loops where airlines can claim a disruption was caused by something beyond their control, like security issues, when it wasn’t. It will no longer be the passenger who has to prove they deserve compensation. Now the airline will have to to prove they don’t have to pay,” said Omar Alghabra, Canada’s Transport Minister, in announcing the measures.

The governments of both countries are seeking to force companies to avoid a new wave of problems at airports, like the one in the summer of 2022, when canceled flights and passengers filling lounges were common.

In May, consumer protection organizations in Australia called on the government to create mandatory compensation in case of cancellation. Currently, the Australian situation is the same as in the US: companies are not required by law to pay compensation.

In the European Union, where passenger rights are already broader, the airlines’ complaint is that the courts are giving a broader interpretation to the so-called 261 regulation, in the sense of increasing compensation paid for cancellations and other problems on board.

In Europe, flight delays of more than three hours can generate compensation between 250 and 600 euros (R$ 1,320 to R$ 3,170), depending on the distance. If the delay is longer or there is a cancellation, the passenger can opt for a refund, which must be paid within seven days.

A survey by IATA (International Air Transport Association) points out that, in Latin America, there are more than 20 projects on the subject under debate by governments. One of them is in Colombia, also on making late payments mandatory.

In Brazil, airlines are required to offer food vouchers if the flight is delayed for more than two hours. If the delay exceeds four hours, accommodation must be offered (if overnight stay is necessary), full reimbursement or the offer of transportation by another modality.

For airline representatives, responsibility for delays should be extended to other sectors, such as airports, and the increase in compensation payments will end up raising fare prices.

“It makes little sense that airlines would be singled out for paying compensation for delays and cancellations that have a wide variety of causes, including air traffic control failures, strikes by non-airline workers and inefficient infrastructure,” complained Willie Walsh, director general of IATA.

“With more governments introducing or strengthening passenger rights rules, the situation is no longer sustainable for airlines. We need to move to a shared responsibility model, where all links in the value chain have the same incentives to maintain their performance without lag,” continued Walsh.

The reporter traveled at the invitation of IATA