Regulation 261 of 2004
Regulation (EC) No 261/2004 of the European Parliament and of the Council of February 11, 2004 is the legal framework setting common rules on compensation and assistance to air passengers in the European Union. This Regulation applies both to flights departing from an airport located in the territory of the European Union and to flights operated by Community carriers arriving in the EU from third countries, provided that passengers have not already received assistance, benefits or compensation in that third country.
Flight delayed – passenger rights
According to the provisions of Article 6 of Regulation 261 of 2004, when an air carrier reasonably expects a flight to be delayed beyond its scheduled time of departure, passengers benefit from several rights. These rights are differentiated according to the length of the delay and the distance of the flight, establishing a progressive system of passenger protection.
For flights of up to 1,500 kilometers that are delayed for at least two hours, the air carrier must provide assistance to passengers. For intra-Community flights of more than 1,500 kilometers and for any other flights between 1,500 and 3,500 kilometers, this obligation arises for a flight delayed for at least three hours. For all other flights which do not fall into the above categories, the threshold for providing assistance is four hours of delay.
With regard to the concrete form of assistance given to passengers in the event of delay, Regulation 261/2004 lays down an obligation for the air carrier to give passengers the right to meals and refreshments free of charge in proportion to the waiting time. In addition, in order to facilitate communication in this situation, the air carrier must provide passengers with the possibility to make two free telephone calls or to send messages by telex, fax or e-mail free of charge. Also, if the early departure time is postponed by at least one day compared with the original departure time, the air carrier must provide free hotel accommodation for passengers. This obligation applies both in situations requiring one or more overnight stays and in cases requiring a stay additional to that originally planned by the passenger. In addition to accommodation, the operator must also provide free transportation between the airport and the place of accommodation.
Also, in the case of delays of five hours or more, passengers may opt for a full refund of the ticket cost, which must be made within seven days. This reimbursement covers both legs of the journey not flown and those already flown, if the flight has become no longer serving any purpose in relation to the passenger’s original travel plan. Moreover, if the passenger is already at an intermediate point in the journey, the operator is obliged to provide a return flight to the original point of departure as soon as possible.
Delayed flight compensation – Flight delay compensation
With regard to financial compensation for delayed flights, Regulation 261 of 2004 establishes a system of differentiated compensation according to the distance traveled. For flights covering a distance of up to 1,500 kilometers, passengers are entitled to compensation of €250. For flights of more than 1,500 kilometers within the European Union, as well as for flights to destinations outside the European Union between 1,500 and 3,500 kilometers, the compensation for delayed flights is set at €400. For long-haul flights of more than 3,500 kilometers to destinations outside the European Union, passengers can benefit from the maximum compensation for delayed flights provided for by the regulation, amounting to 600 euro.
It should be noted, however, that passengers are only entitled to delayed flight compensation if the delay is at least 3 hours. For this reason, it is important that passengers check eligibility before claiming financial compensation.
Flight canceled – passenger rights
Article 5 of Regulation 261 of 2004 lays down the rules on passengers’ rights in the event of flight cancellations. In this case, the air carrier is obliged to provide the affected passengers with full assistance and to present all available alternatives for continuing their journey. Thus, in the case of a canceled flight, passengers have the right to choose between a full refund of the ticket cost or re-routing to their final destination under comparable transport conditions. Ticket reimbursement must be made within seven days for all segments of the journey – both unmade and already flown – if the flight has become no longer serving any purpose in relation to the original travel plan. In this case, if the passenger is already at an intermediate point in the journey, the operator must also provide a return flight to the original point of departure as soon as possible.
With regard to the second option, passengers may choose either to be re-routed to their final destination under comparable transport conditions as soon as possible or to be re-routed at a later date of their choice, subject to availability of seats. These alternatives shall ensure that passengers are able to adapt their travel plans according to their needs and preferences.
In addition to these basic rights, the Regulation also requires the operator to provide immediate assistance to passengers. This includes the provision of free meals and refreshments in proportion to the waiting time, as well as the possibility to make two free telephone calls or to send messages by telex, fax or e-mail. Moreover, if the re-routing involves a scheduled departure at least one day later than the canceled flight, the operator must provide free hotel accommodation, including for any additional overnight stay not foreseen in the passenger’s original plan. In this case, the operator is also obliged to provide free transportation between the airport and the place of accommodation.
Compensation for cancelled flight
In accordance with the provisions of Article 5 of Regulation 261 of 2004, in case of flight cancellation, passengers are also entitled to compensation for the canceled flight, depending on the distance of the flight. Thus, passengers are entitled to financial compensation of EUR 250 for flights of up to 1,500 kilometers. For intra-Community flights exceeding 1,500 kilometers and for all other flights between 1,500 and 3,500 kilometers, the compensation is set at €400. For flights exceeding these distances, the maximum level of compensation is €600.
Regulation 261 of 2005 provides that an air carrier may reduce this compensation by 50% if it offers passengers re-routing to their final destination with a limited delay compared to the originally scheduled arrival time. This reduction is applicable only if the delay does not exceed two hours for flights of up to 1,500 kilometers, three hours for flights between 1,500 and 3,500 kilometers, and four hours for other flights.
However, an air carrier is exempted from the obligation to pay compensation if it informs passengers of a canceled flight at least two weeks before the scheduled time of departure or when the carrier informs passengers of the cancellation between two weeks and seven days before the scheduled time of departure. In the latter case, however, the exemption from compensation is conditional on an alternative flight enabling passengers to depart no more than two hours earlier than the scheduled time of departure and to arrive at their final destination less than four hours later than the scheduled arrival time.
Finally, even if a canceled flight is announced less than seven days before the scheduled departure time, the operator may avoid paying compensation if it offers an alternative flight allowing passengers to depart no more than one hour earlier than originally scheduled and to arrive at their final destination less than two hours later than the originally scheduled arrival time.
It should be noted that the air carrier may be exempted from the obligation to pay compensation for a delayed or canceled flight if it can prove that the delay or cancellation was caused by extraordinary circumstances which could not have been avoided even if all reasonable measures had been taken. The burden of proof in this case is on the air carrier. These include situations where adverse weather conditions render the safe operation of the flight impossible, serious problems relating to the safety of the flight concerned and exceptional circumstances at national level affecting the normal operation of air transport.
