NEW: EU Moves to Protect Passengers
The EU (that's European Union folks) has approved a new set of rules designed to protect the airline passenger. The new rules define situations under which an airline must provide refunds and/or penalties payments to their passengers. These situations include overbooking, mechanical problems and weather problems. This breaks new ground by imposing rules on things that are outside the airline's control (mechanical failures and weather). Predictably the airlines that operate in the EU are none too pleased about this but say they will begin complying with the new rules that go into effect tomorrow.
I normally avoid covering airline news outside the US...the US airlines give me plenty to keep up with. But I think this has the potential reach across the pond and impact the US airline industry. I think that consumer protection groups in the US are going to pick up on this and try something similar. While I feel the US airlines have a strong lobby to combat this type of legislation I am not sure they could stop it. There is growing discontent with the quality of service being offered by the airlines and their often draconian fare policies. I would be remiss if I did not acknowledge that, up to this point, fare refund policies for all airlines have been structured very much in favor of the airlines with little recourse left for the passenger. Legislators may have no choice but to address these issues.
I'm mixed on the whole thing. Should airlines be held accountable for overbooking? Absolutely. Should they be held accountable for mechanical problems? That depends on how they handle the situation. What about weather? I freely admit I do not understand what the airline can do besides refund a ticket when weather plays a role. When should penalties be imposed? I am not sure.
One final admonition...nothing good is free. The impact of this type of rule making hits an airline right in the pocketbook. My bet is that the EU airlines are busy figuring out how to work this new wrinkle into the ticket prices if that haven't done so already. The reaction would be the similar in the US. What I am trying to say is that Joe Consumer will end up covering the cost of these types of rules.
I normally avoid covering airline news outside the US...the US airlines give me plenty to keep up with. But I think this has the potential reach across the pond and impact the US airline industry. I think that consumer protection groups in the US are going to pick up on this and try something similar. While I feel the US airlines have a strong lobby to combat this type of legislation I am not sure they could stop it. There is growing discontent with the quality of service being offered by the airlines and their often draconian fare policies. I would be remiss if I did not acknowledge that, up to this point, fare refund policies for all airlines have been structured very much in favor of the airlines with little recourse left for the passenger. Legislators may have no choice but to address these issues.
I'm mixed on the whole thing. Should airlines be held accountable for overbooking? Absolutely. Should they be held accountable for mechanical problems? That depends on how they handle the situation. What about weather? I freely admit I do not understand what the airline can do besides refund a ticket when weather plays a role. When should penalties be imposed? I am not sure.
One final admonition...nothing good is free. The impact of this type of rule making hits an airline right in the pocketbook. My bet is that the EU airlines are busy figuring out how to work this new wrinkle into the ticket prices if that haven't done so already. The reaction would be the similar in the US. What I am trying to say is that Joe Consumer will end up covering the cost of these types of rules.
posted by The ACK at
11:05
