Iata director general Willie Walsh has demanded Brussels review its regulation EU 261 on air passenger rights and slammed the US, Canada and other countries for introducing similar compensation rules.
Walsh described EU 261 as “a contorting contagion” which penalises airlines for disruption, telling the Iata annual general meeting in Istanbul: “The situation is no longer sustainable.”
He said the cost of EU 261 claims “continues to balloon” and urged a move to “shared accountability” for delays and cancellations.
Walsh insisted: “Airlines are singled out to pay compensation for delays and cancellations that have a broad range of causes.”
Yet he claimed passengers see “little benefit”, arguing: “Consumers are paying more to cover the cost of compensation because the costs need to be recouped, and EU studies show no improvement in delays or cancellations.”
Walsh urged the UK government to seize its chance for a “post‑Brexit model for passenger rights”, arguing reform of the regulations provides “a gilt-edged opportunity for a genuine Brexit dividend”.
The UK government has proposed changes to rules on compensation for domestic flight delays and cancellations with payouts linked to the price of the fare.