Domestic airlines face stricter rules for compensating passengers for flight delays and other disruption under new proposals revealed today (Monday) by transport secretary Grant Shapps.
The aviation regulator will also be given increased powers to enforce consumer protection law and fine airlines directly for breaches “where appropriate”.
Some of the proposals to be consulted on have been made possible due to the UK’s exit from the EU, and a newfound ability to amend rules set under EU regulations, according to the Department for Transport.
These include considering the creation of a fairer compensation model for when UK domestic flights are delayed. Based on the current compensation model used by rail and ferry customers, this will see a significant shift away from what is described as the current ‘set rate’ model.
More: Many airline passengers ‘in the dark’ over delay compensation [Oct 2019]
Jet2 chairman calls for overhaul of flight delay compensation [March 2019]
Passengers would instead be able to claim compensation based on the length of the flight delay and linked to cost of travel, rather than having to meet a certain threshold of a three hour delay.
At the moment passengers can claim compensation for flights delayed by more than three hours, and up to £220 for flights of 1,500 km or under.
Under the new proposals, consumers would be entitled to:
- For delay over an hour but less than two hours – 25% of ticket price
- For delay over two hours but less than three hours – 50% of ticket price
- For delay over three hours – 100% of ticket price
The government is also considering mandating all airlines to be part of the aviation ‘Alternative Dispute Resolution’ (ADR) scheme, which would give consumers a route for escalating certain complaints that cannot be settled between the consumer and airline, without needing to go to court.
There are currently two providers of ADR in the UK, which airlines can join voluntarily.
But under the new proposals, all carriers would have to join the scheme, giving customers access to this dispute route regardless of who they fly with.
“This could help people who are struggling to get refunds when they are entitled to them,” the DoT said.
The proposals also aim to strengthen the Civil Aviation Authority’s powers to further protect both consumers’ and airlines’ interests.
Shapps said: “People deserve a service that puts passengers first when things go wrong, so today I’ve launched proposals which aim to bolster airline consumer protections and rights.
“We’re making the most of our Brexit dividend with our new freedoms outside of the EU, and this review will help build a trustworthy, reputable sector.”
CAA chief executive Richard Moriarty said: ““We welcome the action from the government to improve the rights of air passengers. This consultation is a clear indication of the need to enhance our enforcement powers, and bring us in line with other regulators.
“The proposals will improve passenger rights and equip the Civil Aviation Authority with the appropriate tools to act swiftly and effectively for the benefit of consumers.
“The Alternative Dispute Resolution scheme has helped thousands consumers seek redress from their airline or airport, and we welcome the proposal to bring more airlines onto the scheme.
“We will respond to the consultation in the coming weeks.”
In response, Tim Alderslade, chief executive of trade body Airlines UK, said: “Airlines work hard to ensure that the passenger experience is as smooth and enjoyable as possible. Put simply, without their customers carriers would not exist.
“This is borne out by the most recent CAA tracker – conducted during the pandemic – which showed net satisfaction with aviation at 82%.
“We look forward to responding to the consultation, whilst continuing to deliver for our passengers as we look ahead to the spring and summer season and the sector’s eventual recovery from Covid.”
Rocio Concha, director of policy and advocacy at consumer group Which?, said: “For years passengers have been let down by some companies in the travel sector, battling to be heard or to get the compensation they are owed when things go wrong.
“Trust in travel plummeted further during the pandemic when some airlines ignored their legal obligations and refused to pay refunds for cancelled flights.
“This consultation is a welcome first step that must improve and strengthen consumer rights and protections so that complaints are dealt with fairly and promptly, and that passengers receive the money they are due quickly and without unnecessary hassle.
“It is also vital that the system is backed up by a regulator with the powers it needs to take swift and strong action against any company that breaks consumer law.”
The plans also consult on mandating that airlines provide wheelchair users and people with reduced mobility with the full amount of compensation for any damage caused to their wheelchair or mobility scooter during a domestic UK flight.
At present, under legacy rules, airlines are not mandated to cover the cost of repairs, even if the device is damaged while in their care.
Caroline Stickland, chief operating officer at Transport for All, said: “Having your wheelchair or mobility aid lost or damaged by an airline doesn’t just put a damper on a holiday, it can mean a total loss of independence and mobility.
“Much more needs to be done to safeguard against this, including fair recourse to compensation for disabled passengers.
“We welcome these proposals and hope they mark the start of further positive changes in this area so that disabled people, whatever their access requirements, can travel with security and confidence when using airlines.”
More: Many airline passengers ‘in the dark’ over delay compensation [Oct 2019]
Jet2 chairman calls for overhaul of flight delay compensation [March 2019]