Key success factors for ADR – The example of Aviation. Ombudsman Association’s Biennial Conference Workshop “Turning poachers into gamekeepers” 14th/15th May 2015 Dr. Christof Berlin Conciliator, Head of Aviation Team

About söp – Key facts Intermodal conciliation Service for rail, flight, ship and bus passengers/companies Focus has been on rail, but flight strongly increasing Private conciliation Founded by a private association (“Trägerverein”) Paid for by its members (more than 250 transport companies) Free of charge for travellers Independent conciliation Headed by a former senior judge/president of a Higher Regional Court Advisory board with equal representation of consumers/companies Voluntary conciliation Non-mandatory participation Non-binding outcomes (conciliation proposals)

Key success factors for ADR – A magic circle Acceptance Participation Experience

Was der Bauer nicht kennt, frisst er nicht. Key success factors for ADR – The main challenge Was der Bauer nicht kennt, frisst er nicht. Engl.: What the farmer doesn‘t know, he won‘t eat. You can‘t change habits of a lifetime.

The example of aviation – Distinctiveness of flight passenger claims Most consumer complaints are about air transport – 21.6 % of all EU consumer complaints in 2012 (ECC 2012) Lack of ADR for flight passengers – Most European countries do not have ADR for individual passenger right claims Key role of airlines for ADR – “If you get the airlines, you get them all.”

 NO/little participation and experience (until 2013) The example of aviation –  NO/little participation and experience (until 2013) Refusal of participation by the airlines : Since December 2009, Consumer ADR offered by söp A high volume of conciliation requests from flight passengers Airlines typically reject dealing with complaints, only a handful of cases could be settled ... which led to a lack of experience with ADR …

 NO/little acceptance (until 2013) The example of aviation –  NO/little acceptance (until 2013) … and to remaining prejudice against ADR : “ADR is too expensive” – It only costs money for the industries without any added value. “ADR lacks special expertise” – Aviation demands technical knowledge which is too complex for ADR. “ADR is biased” – Only the consumer’s interest and not the airline’s view is considered. “ADR is not necessary” – Airlines are service-minded and know best how to satisfy their customers.

 A vicious circle (until 2013) The example of aviation –  A vicious circle (until 2013) NO Acceptance NO Participation NO Experience What the farmer doesn‘t know, he won‘t eat.

The example of aviation – New legal requirement since November 2013 German Air Traffic Act (Luftverkehrsgesetz), Sec. 57 ff : Flight passengers have guaranteed access to ADR. + Airlines have to fund ADR procedures. + Submission under a public (residual) scheme for airlines which do not participate in private ADR.

The example of aviation – ✔ Participation of most airlines German Air Traffic Act (Luftverkehrsgesetz – LuftVG), Sec. 57 ff: Flight passengers have guaranteed access to ADR. + Airlines have to fund ADR procedures. + If airlines do not chose private ADR they will be submitted under public (residual) scheme. ________________________________________________________ = Most airlines became a member of söp

The example of aviation – ✔ Experience of most airlines All German and many international airlines are now part of the söp, such as:

The example of aviation – ✔ Acceptance by most airlines Feed-back from the airlines : “We have to admit that your conciliation proposals are well-balanced and not only considering the consumer’s perspective.” “In terms of expertise and sector-specific knowledge, söp can easily compete with the courts.” “If a passenger is not satisfied with our decision, we suggest conciliation at söp.” “My boss said that we should get more cases to söp.” “How can we advise more passengers to contact söp?”

The example of aviation – ✔ A magic circle Acceptance Participation (Air Traffic Act) Experience

The example of aviation – Conclusion

Give it a try! What the farmer doesn‘t know, he won‘t eat. Key success factors for ADR – How to meet the challenge? What the farmer doesn‘t know, he won‘t eat. Give it a try!

Key success factors for ADR – Know-how: Empirical research for best practice

Key success factors for ADR – Regulation: Encouragement for participation The Directive 2013/11/EU does not oblige traders to participate in ADR: „This Directive should not require the participation of traders in ADR procedures (...). However, in order to ensure that consumers have access to redress and that they are not obliged to forego their claims, traders should be encouraged as far as possible to participate in ADR procedures.“ (recital 49)

Thank you!