Proposal for a Council Regulation (EC) amending Regulation (EEC) No 295/91 establishing common rules for a denied-boarding compensation system in scheduled air transport
Date: 1998-01-30
Institutions: European Commission
Subjects: air transport, carriage of passengers, common transport policy, indemnification, trade agreement

COMMISSION OF THE EUROPEAN  COMMUNITIES 

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Brussels,  30.01.1998 
COM(1998) 41  final 

98/0022 (SYN) 

Proposal for a 
COUNCIL REGULATION  (EC) 

amending Regulation (EEC) No 295/91 establishing common rules for a 
denied-boarding compensation  system in scheduled air transport 

(presented by the Commission) 

EXPLANATORY  MEMORANDUM 

A. 

INTRODUCTION 

1. 

2. 

the 

rules 

third  package  of  liberalization  measures  created  an  internal  market  for 
T he 
aviation,  largely  harmonizing 
for  operating  both  domestic  and 
international  air  services.  The  rules  laid  down  by  Regulation  (EEC)  No  295/91 '  for 
in  protecting 
a  denied-boarding  compensation  system  are  a  significant 
passengers'  interests.  However,  application  of the  Regulation  over  the  last  live  years 
coupled  with  recent  developments  in  the  sector  have  revealed  a  need  to  make  a 
number  of  adjustments  to  the  Community  rules  on  this  subject 
In  drafting  this 
proposal  the  Commission  took  account  of  the  conclusions  of  the  consultation  of 
experts  from  the Member  States and  interested  parties on  5 March  19972. 

factor 

Regulation 
compensation  for  passengers  denied  boarding  on  overbooked  flights. 

(EEC)  No  295/91  established  a  system 

to  provide  adequate 

In  practice,  however,  the  Commission  has  noted  a  number  oï  cases  in  which 
passengers  were  not,  or  not  fully,  compensated.  To  a  large  degree,  the  explanation 
for  this state  of affairs  is that  the  passengers  were  uninformed.  On  the one  hand,  the 
vast  majority  of  passengers  denied  boarding  do  not  know  their  existing  rights  in  this 
situation.  On  the  other,  despite  their  obligations  under  the  Regulation,  some  airlines 
their  entitlements 
fail 
to  compensation. 

inform  or  only  partially 

inform  passengers  about 

to 

At  the  meeting  on  5 Match  1997.  the  oi ionizations  consulted  rccogni/cd  the  need 
to  improve  the  infoimalion  luvcn  (o  passengeis  However,  (he aiilines asked  loi  caie 
to  be  taken  not  to  introduce  new  unmanageable  procedures  at  a  prohibitive  cos!  out 
of proportion  to  the objectives  sought. 

Another  point  to  note  is  that  the  amount  set  for  such  compensation  has  remained 
unchanged  since  1991  since  the  Regulation  provides  no  mechanisms  for  adaptation 
to 
the  airline  associations  have 
reservations  about  revision  of  the  amount,  there  is  strong  support  from  consumers1 
organizations  who  feel  that  the amount  set in  1991 must  not  be  sacrosanct. 

the  changing  economic  situation.  Although 

3. 

A  number  of  changes  in  the  air  transport  sector  could  also  have  an  impact  on 
operation  of the Community  denied-boaidim», compensation  system 

(a) 

The  development  o\  commercial  agieemenls  (e.g.  code-sharing)  sometimes 
gives  rise  to  a  situation  where  one  can ici  confirms  the  leseivalion  and  sells 
the  licket  but  anolhei  (hen  denies  boaiding  lo  I he  passengei  at  the  check  in 

OJ \.MK  X.2.lWl..p. 5. 
Organizations consulted:  Association of European Airlines. International  Air Transpoit  Association. 
European Regions Airline Association. Federation of Air Transport  Users Representation  m Europe. 
European  Consumers'  Organization,  Guild  of European  Business Travel  Agents,  Airports  Council 
International,  Group  of  National  Travel  Agents  and  Tour  Operators  Association  within  the EU, 
Independent  Air  Carriers  of  the  EC  (ACE). European  Conference  of  Civil  Aviation  (ECAC) and 
EFT A Surveillance Authority. 

2 

Situations  like  this  must  not  impair  the  passenger's  right  to  obtain  the 
the  Regulation. 
services  provided 
payments  and  additional 
Consequently,  to  provide  rapid,  effective  remedies  for  passengers,  provision 
must  be  made  for  the  carrier  which  denies  boarding  to  assume  the  resultant 
obligations  vis-à-vis  the  passenger.  The  carrier  which  assumes  the  obligations 
imposed  by  this  Regulation  vis-à-vis  the  passenger  will  always  be  able  to 
obtain  compensation 
the 
associate  carrier  to  blame for  the  overbooking. 

its  commercial  agreement  with 

in  turn  under 

for  by 

(b)  There  is  a  trend  towards  ticketless  travel,  with  papers  being  replaced  by 
electronic  "tickets".  The  1ATA  (International  Air  Transport  Association) 
the  "ticket11  is 
recently  adopted  standards  on  electronic 
contained  in  electronic  form  in  the  carrier's  database.  Some  carriers  now  take 
bookings  by  telephone  only  and  simply  give  passengers  a  reservation  number 
In  all  these  cases,  passengers  arrive  at  check-in  without  a  ticket  and  must 
simply  present  identity  papers.  Development  of  such  new  forms  of  ticketing 
must  not,  however,  let  carriers  evade  their  obligations  in  the  event  oi' denied 
boarding  on  an overbooked  llight. 

tickets3.  Now 

(c)  Commercially, 

the  borderline  between  scheduled  and  non-scheduled  aii 
services  is  also  becoming  blurred.  Nor  is  there  any  longer  any  dillerence  in 
terms  of  access  to  inlia-Communily  links  since  1  January  1993,  under  the 
third  package  of liberalization  measures. 

Generally,  seats  on  non-scheduled  flights  arc  sold  by  tour  operators  as  part  oi' a 
package  tour,  in  which  the  flight  is  combined  with  other  pre-arranged  services 
(accommodation,  etc.).  Increasingly,  however,  seat-only  non-scheduled  services  are 
being offered,  in which  carriers  sell passengers,  either  directly  or  via their  authorized 
agents,  seats  with  no  other  services.  Conversely,  it  has  become  common  practice  to 
take a scheduled  flight  as part  of a package  tour. 

Passengers  who  buy  an  air  ticket  as  part  of  a  package  tour  but  are  then  denied 
boarding  receive  compensation  under  Directive 90/314/EEC  on  package  travel, 
package  holidays  and  package  tours4.  By  contrast,  passengers  who  buy  seat-onlv 
tickets  and  are  subsequently  denied  boarding  on  a  non-scheduled  flight  are  not 
covered  by  Directive  90/3 14/IiriC,  which  applies  only  to  seats  sold  as  part  of  a 
(LTiC)  No  295/91, 
pre-arranged  combination  of  services,  or  by  Regulation 
which  applies 
that  a 
flights  only.  There 
certain  category  of  passengers  denied  boaiding  on  non  scheduled  flights  might  not 
receive  compensation. 

therefore  a  risk 

to  scheduled 

is 

There  is  therefore  no  longer  any  justification  for  drawing  a  distinction  between 
passengers  on  scheduled  and  non-scheduled  flights.  However,  one  distinction  which 
is  still 
is  between 
package-tour  passengers,  who  must  receive  compensation  for  the  combination  of 
services  concerned,  and  seat-only  passengers. 

the  different  contractual  obligations, 

legitimate,  due 

to 

"Expedited  resolutions  and  iccommcndcd  piaeliees 
(Joint  IATA/ATA  Passcnr.ei  Services  Coul'cicncc)  in  Eos  Angeles  lioin  l>  to  17 October  l'M>. 
O.J 1.  I.SX. 2-vo.lWO.  p.  ><>. 

adopted  al  I he  I7ih  uicclrng  ol  the  IPS( 

3 

4. 

Some air carriers  still apply  a reconfirmation  policy  and  require  passengers  to meet 
this condition to qualify  for  compensation in the event  of denied  boarding.  Such an 
approach  is  contrary  to  the  objectives  of  the  Regulation.  Even  if  passengers 
reconfirm  their booking, they  will obtain  no proof of having done  so and could  still 
be  denied  boarding,  without  justification,  in  the  event  of  an  error  or  fault  by  the 
carrier.  Consequently,  it  must  be  stipulated  that  non-reconfirmation  by  no  means 
allows carriers to withdraw  passengers' right to compensation for denied boarding. 

5.  Although  some  carriers  state  that  they  pursue  no  overbooking  policy,  this  is  no 
adequate  guarantee  that  the  flight  will  not  be  overbooked  (an  error  in  the 
reservation  system is always  possible; sometimes  the  aircraft  intended  for  the  flight 
is  replaced  by  a  smaller  aircraft,  in  the  case  of  code-sharing,  an  associate  carrier 
could  have overbooked  the flight, etc.). 

Since  the  Regulation  establishes  rules  simply  for  the  c/c Judo  situation  of  denied 
boarding  due  to  overbooking,  irrespective  of  the  cause,  there  is  no  reason  to 
distinguish between carriers on the basis of their business practices 

D.  COMMUNITY ACTION 

6. 

In this context,  the Commission  considers  revision  of  Regulation  (ITiC)  No 2t>5/t,l 
necessary  to  make sure  that  air  transport  users  are effectively  given  lair  conditions 
of carriage,  while keeping  the  situation  acceptable  for  the air  transport  sector.  The 
Commission's analysis took  particular account of the following  factors: 

all passengers  on any flight departing  from  an airport  in the Community  must 
be adequately  covered, 

passengers  must  be  sufficiently  informed  of  their  rights  to  compensation  if 
they are denied boarding; 

Member  States should  ensure,  in particular,  that  information  will be displayed 
properly on notices at airports on their territory; 

recent  developments  in  air  transport  and  ticketing  must  not  impede  piopo 
application of the Community compensation  system, 

passengers should receive fair and equitable compensation  commensurate with 
developments in the economic situation and in the quality of air services, 

commensurate  penalties  providing  an  adequate  deterrent  should  be  imposed 
on carriers who break  the rules, 

application  of the Regulation  over the last five years has revealed  the need  for 
certain  clarifications. 

7. 

For these reasons, the proposal from  the Commission provides, in particular,  for: 

ending  the  distinction  between  scheduled  and  non-scheduled  flights  in 
Article  1  of 
to  application  of 
Directive 90/3 14/EEC  (Article 5 ), 

this  Regulation,  without  prejudice 

improving  infoi malion  for  passengers,  in  particular  by  displaying  a  notice  at 
check-in counters (Article 3); 

adapting  Regulation  (EEC)  No  295/91  to  the  development  of  new  forms  of 
ticketing (Article 2); 

ensuring  that  the  entire  available  capacity  of  the  aeroplane  is  used  before 
boarding is denied (Article 3), 

making  it  clear  that  the  passenger  will  have  the  right  to  have the  cost  of his 
ticket  reimbursed,  including  the  cost  of  the  part  of  his journey  which  has 
become useless for the purpose of his travel plan (Article 4); 

raising the compensation  thresholds  on  the  basis of  inflation  rates  since  1991 
(Article 4); 

making  it  clear  that  non-compliance  by  the  passenger  with  additional 
conditions  imposed  by the carrier,  such as reconfirmation  of the booking  by a 
set  time  before  the  flight,  is  no  reason  for  the  air  carrier  to  withdraw  the 
passenger's  right to compensation  in the event  of denied boarding (Article  I ); 

making  it  clear  that 
the  air  can ici  denying  boarding  must  pay  the 
compensation  to  the  passenger,  irrespective  whether  or  not  it  sold  the 
passenger the ticket and confirmed  the reservation (Article 4). 

8. 

The Commission  also  intends to  begin  an  information  campaign  with  the  object  of 
familiarizing  the  public  at  large  with  its  right  to  denied-boarding  compensation  of 
the same type which is already provided for by the Citizen of Europe campaign. 

Proposai  for a 
COUNCIL  REGULATION  (EC) 

amending  Regulation  (EEC)  No  295/91  establishing  common  rules for  a 
denied-boai ding compensation  system  in scheduled  air ti ansport 

Till:  COUNCIL  OF  1 HE  EUROPEAN  UNION, 

Having  regard  to  the  Treaty  establishing  the  European  Community,  and  in  particular 
Article  84(2)  thereof, 

Having  regard  to the  proposal  from  the  Commission5, 

Acting  in  accordance  with  the  procedure  laid  down  in  Article  189c  oi" the  Treaty  in 
cooperation  with the European  Parliament6, 

Having  regard to the opinion  of the Economic  and  Social  Committee7, 

Whereas  action  by  the Community  in the field of air  transport  must  aim  at  ensuring  a  high 
level of protection  for  users'  interests; 

Whereas  Council  Regulation  (EEC)  No 295/91x  laid  down  certain  common  minimum 
standards  on this  subject; 

Whereas  in  the  light  of  application  of  thai  Regulation,  grealci  piolection  should  be 
ensured  for  passengers'  rights  in this area, 

Whereas  passengers  should  be  better  informed  of  their  rights  in  the  event  oi' theii  being 
denied  boarding; 

Whereas  certain provisions  of Regulation  (EEC) No  295/91  should  be  clarified. 

Whereas  to  avoid  any  disagreement  about  the  check-in  time,  that  time  should  be  set  at 
30 minutes  before  the  announced  departure  time,  unless  the  passenger  is  informed 
otherwise  in writing in advance; 

Whereas  since,  in commercial  tenus,  the bordei line between  scheduled  and  non-scheduled 
air  seivices  is  becoming  blurred,  limitation  of  the  scope  of  Regulation  (EEC)  No  295/(>l 
to  scheduled  flights  only  is  no  longei  sustainable,  whereas  that  Regulation  should  also  be 
extended  to  passengers  on  non-scheduled  flights, 

Wheieas  to  provide  effective  piolection  foi  passengers,  il  should  be  made  cleai  that 
aii  canieis  cannot  be  exempted,  by  means  of  conliactual  clauses,  lioni  theii  obligations 
pursuant  to  Regulation  (EEC)  No  295/91, 

OJL36.  8.2.1991. p. 5. 

Whereas to provide rapid and effective  protection for passengers, arrangements should be 
made for the carrier which denies boarding to assume the obligations provided  for under 
this  Regulation  vis-à-vis  the  passenger,  without  prejudice  to  that  carrier's  right  to  seek 
compensation from  a third party in accordance with the relevant national  legislation; 

Whereas  to  ensure  that  air  carriers  cannot  avoid  the  obligations  incumbent  upon  them 
when boarding is denied, account  should  also be taken of the development  of new  forms 
of ticketing; 

Whereas to ensure that all passengers will be treated  in accordance with  the objectives of 
this  Regulation,  a  confirmed  reservation  indicates  the  existence  of  a  transport  contract 
between  the  air  carrier  and  the  passenger;  whereas  confirmed  reservations  may  not  be 
made subject to additional conditions such as  reconfirmation; 

Whereas to ensure that passengers are adequately  informed  of their  rights  in the event of 
being  denied  boarding,  provision  should  be  made  for  a  notice  at  check-in  counters; 
whereas,  in  this  respect,  it  is  particularly  important  that  the  Member  States  ensure 
compliance with these provisions at all airports on their territory; 

Whereas it should  be ensured  that  the air carrier  uses the entire  available  capacity  of his 
aeroplane  before  denying  boarding,  even  if  this  means  that  the  passenger  will  be 
transported  in a class different  from  that  for which his ticket was paid; 

Whereas  adequate  compensation  to  a  passenger  who  has  been  denied  boarding  should 
consist  in the reimbursement of the cost of any part of his ticket which applies to a part oi 
his journey  which  the  passenger  will  not  undertake  and  of  any  part  which  no  longer 
serves any purpose in relation to his travel plan as a result of his being denied boarding; 

Whereas  in  the  light  of  economic  trends,  it  is  already  necessary  to  adjust 
compensation thresholds; 

the 

Whereas  to  ensure  compliance  with  the  provisions  on  the  subject,  penalties  which 
provide  an  adequate  deterrent  and  are  proportionate  should  be  introduced;  whereas  an 
appropriate system  for adaptation  thereof should, consequently, be set up; 

Whereas Regulation (EEC) No 295/91 should be amended  accordingly, 

HAS ADOPTED THIS  REGULATION: 

Article 1 

Regulation (EEC) No 295/91  is hereby amended as  follows: 

1. 

The term "scheduled" shall be deleted  from  the title of the Regulation. 

2.  Articles  1  to 4 shall be replaced  by the  following: 

"Article 1 

1. 

This  Regulation  establishes  common  minimum  rules  applicable  where 
passengers  are denied  access to  an overbooked  flight  for  which  they  have a 
confirmed  reservation  departing  from  an  airport  located  in  the  territory  of 
a Member  State  to  which  the  Treaty  applies,  irrespective  of  the  State 
where the  air  carrier  is  established,  the  nationality  of  the  passenger  and  the 
point of destination. 

2. 

The obligations of air carriers vis-à-vis passengers pursuant to this Regulation 
may not be limited or waived, notably by a derogation  or restrictive clause in 
the contract of carriage. 

For the purposes of this Regulation: 

Article 2 

(a) 

"denied  boarding"  means  a  refusal  to  accommodate  passengers  on  a flight 
although they have: 

a confirmed  reservation on that  flight, and 

presented  themselves  for  check-in  as  stipulated  and  30  minutes  before 
the announced  departure time or, where more time is prescribed, by the 
time  indicated  to the passenger  in advance  in writing  by  the  air  carrier 
or by its authorized  travel agent; 

(b) 

"ticket"  means  a  valid  ticket  or  equivalent  transport  document,  whether  in 
paper  form  or paperless,  including  electronic,  form,  sold  by the air carrier or 
its authorized  travel agent; 

(c) 

"confirmed  reservation" means that, to the exclusion  of  any  other  condition, 
the passenger has a ticket which contains 

(i) 

in the case of a ticket, 

a specification  of the number, date and time of the flight, and 

the notation "OK" in the appropriate space, or 

(ii) 

in  the  case of  a paper  or  paperless  transport  document  equivalent  to a 
ticket, indicates that the reservation  has been registered  and  confirmed; 

(d) 

"overbooked  flight" means any flight in return  for payment  where the number 
of passengers  holding  a confirmed  reservation  and  presenting  themselves  for 
check-in  within  the required  time  limit  and  as stipulated  exceeds  the number 
of  available  seats,  including  cases  where  the  aircraft  intended  for  the flight 
has been replaced  by another  aircraft; 

(e) 

"volunteer" means a person who: 

has a confirmed  reservation, and 

responds  positively  to  the  air  carrier's  call  for  passengers  prepared  to 
surrender their confirmed  reservation in exchange for compensation; 

(I) 

"final  destination"  means  the  destination  on  the  ticket  presented  at  the 
check-in  counter  or,  in  the case  of  successive  flights,  the destination  of  the 
last  flight.  Connecting  flights  which  can  be  carried  out  without  difficulties 
although  a  delay  has  been  caused  by  denied  boarding  are  not  taken 
into account. 

Article 3 

1. 

The  air  carrier  must  use  the  full  capacity  available  on  the  aircraft  before 
denying boarding. 

If the  passenger  is placed  in  a class  higher  than  that  for  which  a  ticket  has 
been purchased, the air carrier may request no supplementary payment. 

If  the  passenger  agrees  to  be  placed  in  a  class  lower  than  that  for  which  a 
ticket  has  been  purchased,  he  shall  be^  entitled, 
to  the 
compensation  in accordance with  Article 4(2), (4) and  (5), to  reimbursement 
of the difference  in price. 

in  addition 

2.  All  air  carriers  must  lay  down  the  rules  which  they  will  follow  when 
passengers  are  denied  boarding  in  the  event  of  an  overbooked  flight, 
including  the  rules  laying  down  the  priorities  for  passenger  embarkation. 
These rules must include all the obligations arising  from  this Regulation. The 
air  carriers  shall  notify 
these  rules  and  any  changes  therein  to  the 
Member State  concerned  and  to  the  Commission,  which  shall  make  them 
available to the other Member States. Any such changes shall enter into  force 
one month after their  notification. 

3. 

The rules referred  to in paragraph  2 shall be made available to the public by 
the carriers. 

The  legal entity  responsible  for passenger check-in  must  ensure that  a notice 
containing  the  following  text  in  letters  at  least  two  centimetres  high  is 
displayed at the check-in counters in a manner clearly visible for passengers: 

"If  you  are denied  boarding,  ask  at  this check-in  counter  for  the  text  stating 
your rights, particularly with regard to compensation." 

The rules referred  to in paragraph 2 must, where technically  feasible,  include 
the possibility of a call  for volunteers prepared not to board. 

In  any  event  the  air  carrier  must  take  into  consideration  the  interests  of 
passengers  who must  be given  boarding  priority  for  legitimate  reasons, such 
as handicapped  persons and unaccompanied  children. 

The  rules  referred  to  in  paragraph  2  shall  form  part  of  the  air  carrier's 
condition? of carriage. 

4. 

5. 

6. 

Article 4 

1. 

In the event  of boarding being  denied, the air carrier  denying  boarding  must 
offer  the passenger the choice between: 

reimbursement  without  penalty  of the cost  of the ticket  for  all parts of 
the journey  not made or which no longer  serve any purpose  in relation 
to his original travel plan, or 

re-routing,  under  comparable  air  transport  conditions,  to  his  final 
destination  at the earliest opportunity, or 

re-routing,  under comparable  air transport  conditions,  at  a  later date at 
the passenger's convenience. 

2. 

Irrespective  of  the  passenger's  choice  mentioned  in  the  case  referred  to  in 
paragraph  1,  the  air  carrier  denying  boarding  shall,  immediately  after 
boarding  has been  denied, pay minimum  compensation,  without  prejudice  to 
paragraphs 4 and 5, amounting to: 

ECU  185 for  flights of up to 3 500 km, 

ECU 370 for  flights of more than 3 500 km, 

having regard  to the final destination  specified  in the ticket. 

3. 

The  Commission,  acting  in  accordance  with  the  procedure  laid  down  in 
Article 9a,  may  adjust  the  amounts  referred  to  in  paragraph 2  where  that  is 
made necessary by economic trends. 

4.  Where  the carrier  denying  boarding  offers  re-routing  to  the final destination 
on  an  alternative  flight,  the  arrival  time  of  which  does  not  exceed  the 
scheduled  arrival time of the flight  originally booked by two hours  for  flights 
of up to  3 500 km,  and by  four  hours  for  flights  of more  than  3 500 km, the 
compensation  provided  for in paragraph 2 may be reduced by 50%. 

5. 

6. 

7. 

The  amounts  of  compensation  need  not  exceed  the  price  of  the  ticket  in 
respect of the final destination. 

The compensation  shall be paid  in cash or, with  the written  agreement  of the 
passenger,  in travel  vouchers and/or other services. 

The  distances  given  in  paragraphs 2  and  4  shall  be  measured  by  the  great 
circle track  method (great circle route)." 

The introductory phrase in Article 6(1) shlall be replaced by the  following: 

"Apart  from  the minimum compensation  amounts set out in Article 4, the air carrier 
to  passengers  who  are 
denying  boarding 
denied boarding:" 

free  of  charge 

shall  offer 

10 

4. 

The following  Article 6a shall be  added: 

"Article  6a 

In  cases  where  an  air  carrier  pays  compensation  or  meets  the  other  obligations 
incumbent  on  it  under  this  Regulation,  no  provision  of  this  Regulation  may  be 
interpreted  as  restricting  its  right  to  seek  compensation  from  a  third  party  in 
accordance  with  the national  law  applicable." 

5. 

Article  8 shall  be replaced  by the  following: 

"Article  8 

Air  carriers  denying  boarding  shall  provide  each  passenger  affected  by  denied 
boarding with  a notice  setting out the denied-boarding  compensation  rules." 

6. 

The  following  Articles  9a, 9b and  9c shall  be  added: 

"Article  9a 

The  Commission  shall  be  assisted  by  a committee  of  an  advisor}'  nature  composed 
of  the  representatives  of  the  Member  States  and  chaired  by  the  representative  of 
the  Commission. 

The  representative  of  the  Commission  shall  submit  to  the  committee  a  draft  of  the 
measures  to  be  taken.  The  committee  shall  deliver  its opinion  on  the  draft,  within  a 
time  limit  which  the  chairman  may  lay  down  according  to  the  urgency  o\'  the 
matter,  if necessary  by  taking  a vole. 

The  opinion  shall  be  recorded  in  the  minutes;  in  addition,  each  Member  State  shall 
have  the right to ask  to have  its position  recorded  in  the  minutes. 

The  Commission  shall  take  the  utmost  account  of  the  opinion  delivered  by  the 
committee.  It  shall  inform  the  committee  of  the  manner  in  which  its  opinion  has 
been  taken  into  account. 

Article  9b 

Member  States  shall  determine  the  penalties  applicable  to  infringements  of  this 
Regulation  and  shall  take  all  measures  necessary  to  ensure  that  it  is  implemented. 
The  penalties  provided  for  must  be  effective,  proportionate  and  dissuasive.  The 
Member  Stales  shall  notify 
the  Commission  of  those  measures  no  later  than 
30 June  1998 and  shall  notify  it of any  amendments  thereto  without  delay. 

Article 9c 

Each  year  the  Member  Slates  shall  compile  a summary  report  of  the  eases  of  denied 
boarding  due  to  overbooking  which  occurred  at  airports  on  their  territory.  Those 
reports  shall  be  submitted  to  the  Commission  by  31  March  of  the  year  following 
the year covered  by  the  report." 

11 

* 

•' 

/vi ucie  JL 

t . . < *» 

This  Regulation  shall  eniei  into  foice  on  the  twentieth  day  following  the  date  oi  ILS 
I his  Regulation  shall  eniei  into  foice  on  the  twentieth  day  following  the  date  01  ILS 
This  Regulation  shall  eniei  into  foice  on  the  twentieth  day  following  the  date  oi  ILS 
This  Regulation  shall  eniei  into  foice  on  the  twentieth  day  following  the  date  oi  ILS 
This  Regulation  shall  eniei  into  foice  on  the  twentieth  day  following  the  date  01  ILS 
publication  in the Officio/.loin  ital of  the  Etuopeaii  Communities 
publication  in the Officio!  Join ital i)f itie Etuopeaii  Communities 
publication  in the Officio/  Joinital  of  the  Etuopeaii  Communities 
the  Etuopeaii  Communities 
publication  in the Officio/  Joinitalof 
(he rluropean  Communities 
publication  in the Officio!  Joinitalof 

Aiiiclc  1,  point  5,  shall  not  apply  until  six  months  after  the  dette  of  entiy  into  ibice  e>[% 
Aiiiclc  1,  point  5,  shall  not  apply  until  six  months  after  the  date  of  entiy  into  ibice  e>[% 
Aiiiclc  1,  point  5,  shall  not  apply  until  six  months  after  the  date  of  entiy  into  ibice  e>[% 
Aiiiclc  1,  point  5,  shall  not  apply  until  six  months  after  the  date  of  entiy  into  ibice  e>[% 
Aiiiclc  1,  point  5,  shall  not  apply  until  six  months  after  the  date  of  entiy  into  ibice  e>[% 
this  Regulation. 
this  Regulation. 
this  Regulation. 
this  Regulation. 
this  Regulation. 

This  Regulation  shall  be  binding 
This  Regulation  shall  be  binding 
This  Regulation  shall  be  binding 
This  Regulation  shall  be  binding 
This  Regulation  shall  be  binding 
Member  States. 
Member  States. 
Member  States. 
Member  States. 
Member  States. 

in 
in 
in 
in 
in 

its  entirety  and  directly  applicable 
its  entirety  and  directly  applicable 
its  entirety  and  directly  applicable 
its  entirety  and  directly  applicable 
its  entirety  and  directly  applicable 

in  all 
in  all 
in  all 
in  all 
in  all 

Dune  ai  Brussels, 
Donc  ai  Brussels, 
Donc  ai  Brussels, 
Donc  ai  Brussels, 
Donc  ai  Brussels, 

l oi  the  Council 
l oi  the  Council 
l oi  the  Council 
l oi  the  Council 
l oi  the  Council 

The  Picsidcnl 
The  Picsidcnl 
The  Picsidcnl 
The  Picsidcnl 
The  Picsidcnl 

IMPACT  A S S E S S M E NT  F O RM 
IMPACT  A S S E S S M E NT  F O RM 
IMPACT  A S S E S S M E NT  F O RM 
IMPACT  A S S E S S M E NT  F O RM 
IMPACT  A S S E S S M E NT  F O RM 

The  impact  of  the  proposal  on  business,  with 
The  impact  of  the  proposal  on  business,  with 
The  impact  of  the  proposal  on  business,  with 
The  impact  of  the  proposal  on  business,  with 
The  impact  of  the  proposal  on  business,  with 

special  reference  to  small  and  medium-sized  enteipiises 
special  reference  to  small  and  medium-sized  enteipiises 
special  reference  to  small  and  medium-sized  enteipiises 
special  reference  to  small  and  medium-sized  enteipiises 
special  reference  to  small  and  medium-sized  enteipiises 

Title  of  proposal: 
Title  of  proposal: 
Title  of  proposal: 
Title  of  proposal: 
Title  of  proposal: 

Proposal 
Proposal 
Proposal 
Proposal 
Proposal 
establishing  common 
establishing  common 
establishing  common 
establishing  common 
establishing  common 
air  transport 
air  transport 
air  transport 
air  transport 
air  transport 

for  a  Council  Regulation 
for  a  Council  Regulation 
for  a  Council  Regulation 
for  a  Council  Regulation 
for  a  Council  Regulation 

(EC)  amending  Regulation 
(EC)  amending  Regulation 
(EC)  amending  Regulation 
(EC)  amending  Regulation 
(EC)  amending  Regulation 

iules  foi  a  deuied-boaidiug  compensation  system 
iules  foi  a  deuied-boaidiug  compensation  system 
iules  foi  a  deuied-boaidiug  compensation  system 
iules  foi  a  deuied-boaidiug  compensation  system 
iules  foi  a  deuied-boaidiug  compensation  system 

(EEC)  No295A)l 
(EEC)  No295A)l 
(EEC)  No295A)l 
(EEC)  No295A)l 
(EEC)  No295A)i 
in.scheduled 
in.scheduled 
in.scheduled 
in.scheduled 
in  scheduled 

Reference  n u m b e r: 
Reference  n u m b e r: 
Reference  n u m b e r: 
Reference  n u m b e r: 
Reference  n u m b e r: 

She  proposal 
She  proposal 
She  proposal 
She  proposal 
She  proposal 

The  impact  on  business 
The  unpad  on  business 
The  impact  on  business 
The  impact  on  business 
The  impact  on  business 

1.  Who  will  be  alfected  by  the  proposal? 
1.  Who  will  be  alfected  by  the  proposal? 
1.  Who  will  be  alfected  by  the  proposal? 
1.  Who  will  be  alfected  by  the  proposal? 
1.  Who  will  be  alfected  by  the  proposal? 

Which  sectois  of  business? 
Which  sectois  of  business? 
Which  sectois  of  business? 
Which  sectois  of  business? 
Which  sectois  of  business? 

An carriers. 
An carriers. 
An carriers. 
An carriers. 
An carriers. 

sizes  of  business 
sizes  of  business 
sizes  of  business 
sizes  of  business 
sizes  of  business 

Which 
Which 
Which 
Which 
Which 
medium-sized-iii  ms)? 
medium-sized-iii  ms)? 
medium-sized-iii  ms)? 
medium-sized-iii  ms)? 
medium-sized-iii  ms)? 

(what 
(what 
(what 
(what 
(what 

is 
is 
is 
is 
is 

the 
the 
the 
the 
the 

oi 
coiicenlialion  oï 
coiicenlialion 
oi 
coiicenlialion 
oï 
coiicenlialion 
oï 
coiicenlialion 

small 
small 
small 
small 
small 

and 
and 
and 
and 
and 

I he  European  maikel  consists  pinuaiily  of  laige  companies  (AI  A)  winch  lake 
I he  European  maikel  consists  pinuaiily  of  laige  companies  (AI  A)  winch  take 
I he  European  maikel  consists  pinuaiily  of  laige  companies  (AI  A)  winch  lake 
I he  European  maikel  consists  pinuaiily  of  laige  companies  (AI  A)  which  take 
The  European  niaikei  consists  pinuaiily  of  laige  companies  (AI  A)  which  lake 
3 1%  of  the  nuuket.  Charier  companies  (ACT:)  take  5o%  of  ilie  Commumiv 
3 1%  of  the  maikel.  Charier  companies  (ACT:)  take  5o'o  of  the  Commumiv 
3 1%  of  the  maikel.  Charier  companies  (ACT:)  take  5o'o  of  the  Commumiv 
3 1%  of  the  maikel.  Charier  companies  (ACT:)  take  5o'o  of  ihc  Commumiv 
3 1%  of  the  maikel.  Charier  companies  (ACT:)  take  5o%  of  ihc  Commumiv 
aviation  inaikei  Medium-sized  (ACT:)  and  legioual  animes  (ERA)  take  7% 
aviation  maikel  Medium-sized  (ACT])  and  legioual  animes  (ERA)  take  7'\> 
aviation  maikel  Medium-sized  (ACT])  and  legioual  animes  (ERA)  take  7'\> 
aviation  maikel  Medium-sized  (ACT])  and  legioual  animes  (ERA)  take  7'\> 
aviation  maikel  Medium-sized  (ACT])  and  legioual  an lines  (ERA)  take  7% 
and  6%  respectively.  Small  companies  take  an  extremely  marginal  shaic". 
and  6%  respectively.  Small  companies  take  an  extremely  marginal  shaic". 
and  6%  respectively.  Small  companies  take  an  extremely  marginal  shaic". 
and  6%  respectively.  Small  companies  take  an  extremely  marginal  shaic". 
and  6%  respectively.  Small  companies  take  an  extremely  marginal  shaic". 

theie  paiticulai  geogiaphical  aieas  of 
theie  paiticulai  geogiaphical  aieas  of 
theie  paiticulai  geogiaphical  aieas  of 
theie  paiticulai  geogiaphical  aieas  of 
theie  paiticulai  geogiaphical  aieas  of 

Are 
Are 
Are 
Are 
Are 
businesses  are  found? 
businesses  are  found? 
businesses  are  found? 
businesses  are  found? 
businesses  are  found? 

the  Community  wheie 
the  Community  wheie 
the  Community  wheie 
the  Community  wheie 
the  Community  wheie 

these 
these 
these 
these 
these 

No. 
No. 
No. 
No. 
No. 

2.  What  will  business  have  Io  do  to  comply  wilh  the  proposal? 
2.  What  will  business  have  to  do  to  comply  with  the  proposal? 
2.  What  will  business  have  Io  do  to  comply  wilh  the  proposal? 
2.  What  will  business  have  Io  do  to  comply  wilh  the  proposal? 
2.  What  will  business  have  to  do  to  comply  with  the  proposal? 

To  comply  wilh  (hi:;  Regulation,  an  eairieis  will  have  In  minim  paNNcngcr.  m  ihe 
To  comply  wilh  (hi:;  Regulation,  an  cairiciN  will  have  In  minim  paNNcngcr.  in  ihe 
To  comply  wilh  (hi:;  Regulation,  an  cairiciN  will  have  In  minim  paNNcngcr.  m  ihe 
To  comply  wilh  (hi:;  Regulation,  an  eauieis  will  have  in  minim  paN.'.cngci';  m  ihe 
To  comply  wilh  (hi:;  Regulation,  an  c a i n c r.  will  have  in  minim  paN.'.cngci';  m  ihe 
appiopriatc  way  and  grant  ihem  compensation  m  the  event  ol  denied  boaiding 
appiopriatc  way  and  grant  ihem  compensation  in  the  event  ol  denied  boaiding 
appiopriatc  way  and  grant  ihem  compensation  in  the  event  ol  denied  boaiding 
appiopriatc  way  <ind grant  ihcni  compeusalion  in  the  event  ol  denied  boaiding 
appiopriatc  way  <ind grant  ihem  compeusalion  in  the  event  ol  denied  boaiding 

Communication  fiom  ihc  Commission  io ihe Council  and  ihe  Muiopcan  Paihaiucut  on  ihc  inipaci  oi 
Communication  fiom  ihc  Commission  io iiic Council  and  ihc  liuiopcan  Paiiiamcut  on  ihc  inipaci  oi 
Communication  fiom  ihc  Commission  io iiic Council  and  ihc  liuiopcan  Paiiiamcut  on  ihc  inipaci  oi 
Communication  fiom  ihc  Commission  io iiic Council  and  ihc  liuiopcan  Paihaiucut  on  ihc  inipaci  oi 
Communication  I'lom  iiic Commission  io ihc Council  and  ihc  Muiopcan  Paihaiucut  on  ihc  inipaci  oi 
the third  package of air transport  liberalization  measures (COM(%) 511 final.  ^2  10  \'}')(<). 
Ihe third  package of air inmsport  liberalization  measures (COM(%) 511 final.  ^_\ 10  \'}')(<). 
Ihe third  package of air transport  liberalization  measures (COM(%) 511 final.  ^_\ 10  \'}')(<). 
Ihe third  package ol'air inmsport  liberalization  measures (COM(%) 511 final.  ^_\ 10  \'}')(<). 
the third  package of air transport  liberalization  measures (COM(%) 511 final.  ~~10  \'}')(<). 

13 
13 
13 
13 
13 

What  economic  effects  is the proposal  likely to  have? 

-» 

on  employment: 

None. 

on  investment  and  the  creation  of new  businesses: 

None. 

on the competitive  position  of businesses: 

The denied-boarding  compensation  system  applies  to  all  flights  departing  from 
an  airport  located  in  the  territory  of  a  Community  Member  State,  irrespective 
of  the  State  where  the  air  carrier  is  established  Equivalent  piovisions  e\isi 
outside  the Community,  notably  in the  USA. 

Does  the  pioposal  contain  measures  to'take  account  of  the  specific  situation  of 
small  and  medium  sized  enterpiises? 

No. 

Consultation 

List  the  organizations  which  have  been  consulted  about  the  proposal  MK\  outline 
their  main views: 

• 

• 

The  Government  experts  from  the  Member  States  and  the  interested  panic* 
have  recognized  the  need  to  improve  the  information  provided  to  passengers 
on  their  rights in the event  of denied  boarding. 

The  consumers1  associations  have  suppoited  the  Commission  pioposal.  luil 
the  (iiilinos  have  expressed  more  leseivalions  stiessiiu»,  in  pailiculai,  llie 
additional  costs  to  which  it could  give  lise 

Organizations  consulted  Association  of  European.  Airlines, 
International  Ai? 
ledeiatioii  of 
Transport  Association,  European  Regions  Airline  Association., 
Air Transpoit  Users  Repiesentation  in  Europe,  European  Consumers1  Organization, 
Guild  of  European  Business  Travel  Agents,  Airports  Council 
International, 
Group  oi' National  Travel  Agents  and  lour  Operators  Association  within  the  EU, 
Independent  Air  Carriers  oi' the  EC  (ACT:),  European  Conference  of  Civil  Aviation 
(ECAC) and  El  I A Surveillance  Authority 

ISSN 0254-1475 

COM(98)41  final 

DOCUMENTS 

EN 

07  08  10  06 

Catalogue number  : CB-CO-98-041-EN-C 

ISBN  92-78-30402-6 

Office  for Official  Publications of the Huropean Communities 

l..-2t>85  Luxembourg 

15