EU261 reform deal nears as airlines face tougher rules on passenger claims
European Union negotiators are inching closer to a final agreement on long-running reforms to the bloc’s EU261 air passenger rights rules, according to a report.
After months of talks between EU member states and the European Parliament, negotiators are said to be honing in on a deal that would preserve the core structure of existing EU261 compensation rules, while introducing new obligations on airlines around transparency and how claims are handled.
Under the proposal, passengers would continue to qualify for compensation after delays of three hours, Politico reported, however there would be significant changes to how flight prices are displayed and cabin baggage is charged.
EU ambassadors were expected to review the latest text on Friday following another round of negotiations earlier in the week.
Existing delay compensation thresholds likely to remain
The compensation structure under the current EU261 rules would remain broadly unchanged under the agreement, the Politico report said.
Delays over three hours would result in compensation of €250 for flights of no more than 1,500km, while longer flights of up to 3,500km which are delayed more than three hours would see €400 payouts.
Airlines would also be required to send affected passengers a direct link to a compensation claim form within 48 hours of a cancelled or delayed flight’s scheduled arrival time.
Once a claim is submitted, airlines would then have 30 days either to issue payment or explain why compensation is being refused.
Cabin baggage rules also included in wider reform package
The passenger rights negotiations have also included discussions around cabin baggage pricing.
Earlier this week, negotiators were said to have reached an agreement requiring airlines to display fares that include larger, wheeled suitcase cabin baggage allowances, rather than including only the smaller under-seat personal items.
Passengers would still be able to travel with only a small personal item and receive a lower fare, but this would be a discount on the advertised fare.
As previously reported, the European Parliament had pushed for stronger protections around cabin baggage entitlements amid concerns that some airline pricing practices were misleading.
Industry warning over impact on airlines
Although negotiators appear close to agreement, the reforms are not yet finalised.
Politico reported that ambassadors would first need to approve a draft of the bill before it goes to a conciliation committee made up of MEPs and member state representatives. This would need to take place by 15 June.
Last month, industry group Airlines for Europe (A4E) warned that plans to strengthen air passenger rights could double the cost burden on airlines.
The existing EU 261 regime already costs carriers around €8bn a year, according to figures cited by the European Commission, but the proposals being debated in Brussels would push that bill to €15bn annually.
Ourania Georgoutsakou, managing director of A4E, described the system as “an insurance policy that all passengers will pay for as part of their ticket price” and urged decision-makers in the EU to take a more “pragmatic” approach.
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