To represent, lead and serve the airline industry Revision of the Air Passenger Rights legislation Industry views Revision of the Air Passenger Rights legislation Industry views Anca Apahidean – Area Manager Eastern Europe Gdansk, 15 November, 2013

About us The International Air Transport Association (IATA) is the trade association for the world’s airlines, representing some 240 airlines or 84% of total air traffic. Common position together with AEA, ELFAA, ERA, IACA.240 airlines 11 December 20152

We support this revision of Reg. 261 where  it clarifies  it improves application  it gives real additional rights 11 December We support a revision of Reg. 261

11 December Few examples: Positive elements – real additional passenger rights  Care is provided after 2 hours instead of 2/3/4 hours depending on the length of the flight (Art.6.1)  Better and more timely information to be provided to passengers (Art.14)  Possibility to correct a spelling mistake (Art.4.5)

We support this revision of Reg. 261 where  it re-balances passenger rights with airline obligations 11 December 20155

6 Few examples Positive elements – a balanced approach  “Trigger” points introduced for length of delay - even if they should be aligned with the trigger points related to the level of the compensation in Art.7 (Art.6)  five hours for all intra EU flights and other flights of less than 3500km  nine hours for flights between 3500 and 6000kms  twelve hours for longer flights.  Time limitation for assistance when event due to extraordinary circumstances (Art.9.2)

We do not support this revision of Reg. 261 where  it creates “false” passenger rights 11 December 20157

8 Few examples Elements with negative impacts on passengers (1)  Jeopardizing safety - intrusion into safety related operational decisions  Diversions are not cancellations (Art.2 l)  Documented technical problems are extraordinary circumstances (annex)  Limiting pricing and contractual freedoms and increasing fares  Partial ban of no-show policy (Art.4.4) will lead to higher prices, encourage overbooking and have a negative impact on the environmental performance of airlines

11 December  Jeopardizing interlining and regional connectivity  Definition of a delay at final destination and notion of “journey”: unintended consequences  Missed connection (Art.6a)  Unfair treatment of carriers  Contradiction with industry practices  Connecting flights with transfers outside of the EU  Extension of scope / inapplicability Elements with negative impacts on passengers (2)

The purpose of the no-show policy  Pricing is based on “directional imbalances” and market demand  The No show policy is a pro-consumer practice to ensure low prices! 11 December BRUMRS = more demand in summer to visit Marseille than Brussels: the price of the ticket for this destination is higher = less demand in summer to visit Brussels than Marseille: the price of the ticket for this destination is lower = less demand in summer to visit Brussels than Marseille: the price of this return journey is lower (may be lower than one way BRU-MRS) = more demand in summer to visit Marseille than Brussels: the price of this return journey is higher MRSBRU MRSBRUMRSBRUMRS

Considerations on delays  European Commission  The explanatory memorandum to the original proposal shows that the EC’s intention was not to apply a dissuasive compensation for delays (it distinguished between denied boarding/cancellation on the one hand and delay on the other on the basis that the carrier is always responsible for the former and not always for the latter)  Council  The observations of the Council in the TUI/easyJet/BA/IATA CJEU (challenge to Sturgeon) go as far as saying that it is very doubtful that they would ever have accepted a regulation that imposes compensations for delays.  European Parliament  The observations of the EP in the TUI/easyJet/BA/IATA CJEU case (challenge to Sturgeon) show that cancellations and delays are not to be treated in a similar way because they are completely different situations / loss of time is not what compensation is for since under a cancellation, carriers can offer an earlier re-routing flight/ delays can be created in the interest of passengers and carriers should therefore not be penalized for them. 11 December

Thank You