The Court of Justice of the European Union has broadened the application of airline passengers' rights to claim compensation for delays and cancellations from airlines based outside the EU.
The EU's top court ruled in favour of three plaintiffs last week who sued United Airlines for compensation for a 223-minute delay on a flight between Brussels and San Jose in California.
The regulation, known as EU 261, applies to disruptions from technical issues caused by the airline but not to disruptions that fall outside the carrier’s control, such as extreme weather conditions or civil unrest.
Previous application of the regulation covered any flights originating and/or ending in the EU, but only applied to flights being operated by an EU-based airline.
The new ruling adjusts those parameters, broadening them to any airline that “operates the entirety of the flight” on behalf of an EU airline when that carrier takes off or lands in the EU. This includes any connections made as part of a single reservation.
In the case ruled on last week, the plaintiffs departed from Brussels but had a connecting flight in the US, which contributed to the extended delay.
The three passengers made their booking through Lufthansa via a travel agency and the court ruled that United was “acting on behalf of the contracting carrier (Lufthansa)”, and United may be liable to pay compensation as the operator of the flights.
Compensation experts said that US connection would have previously been a blocker to passengers receiving a payout.
Julian Navas, legal strategy manager for flight compensation management company Airhelp, said: “While this [flight] previously would have been exempt because of the US connection and carrier, the court stated that a connecting flight falls within the scope of the regulation on the ground that the passengers have started their journey from an airport located in the EU.”
“This is a major step in the right direction for travellers’ rights, as it protects travellers more even when outside of the EU,” he added. “We hope this paves the way for stronger protections down the road.”
Under EU 261, travellers on flights that experience avoidable disruptions, defined as delays of more three hours, last-minute cancellations or denied boarding, can claim up to $700 in compensation from the airline.
Whether and how corporates should manage such claims has been a sticky issue. However, some travel third-party providers, including travel management companies, have launched services designed to assist corporates in making such claims.
The US has no laws that open flight disruption compensation to passengers.