Opinion of the Economic and Social Committee on the "Communication from the Commission to the European Parliament and the Council: Protection of air passengers in the European Union"
Date: 2001-03-28
Institutions: European Economic and Social Committee
Subjects: air transport, carriage of passengers, consumer information, consumer protection, reservation, transport price

C 155/6

EN

Official Journal of the European Communities

29.5.2001

Opinion of the Economic and Social Committee on the ‘Communication from the Commission
to the European Parliament and the Council: Protection of air passengers in the European Union’

(2001/C 155/02)

On 26 June 2000 the European Commission decided to consult the Economic and Social Committee,
under Article 262 of the Treaty establishing the European Community, on the above-mentioned
communication.

The Section for Transport, Energy, Infrastructure and the Information Society, which was responsible for
preparing the Committee’s work on the subject, adopted its opinion on 6 March 2001. The rapporteur
was Mr von Schwerin.

At its 380th plenary session of 28 and 29 March 2001 (meeting of 28 March) the Committee
unanimously adopted the following opinion.

1.

Introduction

2.2.2.
passengers.

Airlines should provide adequate care for delayed

The purpose of the Commission Communication on the
protection of air passengers in the European Union is to
improve the protection of air passengers’ interests.

On the one hand, the Commission has launched a campaign
to make passengers aware of
their existing rights under
Community legislation. On the other, it is looking to adopt
legislation to improve the protection of air passengers’ inter-
ests. However, it is also seeking voluntary commitments from
airlines, and wants (i) to make it possible to compare airlines’
performances and (ii) to strengthen the representation of
passenger interests.

2. Gist of the Commission proposal

2.2.3.
Airlines should undertake to introduce simple pro-
cedures for lodging complaints and mechanisms for settling
disputes out-of-court.

The Commission also wants to promote voluntary
2.3.
commitments by airports to set quality standards for services
and to consider design standards for terminals. The Com-
mission will continue to strongly encourage the involvement
of all
interested parties and act as coordinator when the
responsibilities of airlines and airports overlap.

The Commission intends to adopt legislation in order

2.1.
to:

The Commission also intends to take the following

2.4.
initiatives:

— enable delayed passengers to continue their journeys
under good conditions, by giving them the right either to
reimbursement of the ticket or to an alternative flight at
the earliest opportunity;

— to discuss how best to strengthen the representation of
passengers with Member States and passengers’ organis-
ations (consumer associations);

— create new rights for passengers in cases of overbooking
(denied boarding) and by setting minimum requirements
for contracts in air travel;

— to examine the effects on the market of sales and
reservations via the Internet and their conformity with
competition rules and the code of conduct for computer
reservation systems (CRS);

— give passengers the information they need to make well-

founded choices between airlines.

2.2.
The Commission is seeking to promote the preparation
and adoption of voluntary commitments by European airlines.

— to study the effects on competition of code-sharing, in
the context of individual competition proceedings, and
of tariff co-ordination in interlining, in its review of the
block exemption for interlining;

The Commission feels that airlines should adopt
2.2.1.
voluntary commitments designed to improve service quality
as widely as possible.

— to assess the impact of cabin conditions on passengers’
health, by setting up expert groups to scrutinise existing
research and draw conclusions on risks to health.

29.5.2001

EN

Official Journal of the European Communities

C 155/7

3.

The Committee’s comments

by overbookings (denied boarding) and flight cancellations
must be improved. The Committee would refer to its opinion
on Directive 93/13/EEC (3).

3.1.
The Committee welcomes the Commission’s plans to
improve the protection of air passengers in the European
Union and shares the Commission’s view on the need to
strike the right balance between Community legislation and
voluntary commitments by airlines and airports. The Com-
mittee feels that legislation should be enacted laying down
minimum requirements for air passengers’ inalienable rights
and that airlines and airports should enter into voluntary
agreements which supplement this legislation. Adding its voice
to the call made by the EU Council (1) on this issue, the
Committee thinks that the voluntary agreements by airlines
should certainly be in place by May 2001.
If voluntary
agreements by airlines and airports fail to address consumer
rights adequately, the Committee feels that the entire field
should be regulated by legislation. Air passengers must be fully
informed of their contractual rights in so far as these are
covered by airlines’ conditions of carriage.

The absence of

3.2.
the proposed ‘chain of contracts’
between airports, airlines and other service providers is one of
the main problems facing air transport. Normally, since a
company is able to select subcontractors and suppliers accord-
ing to its own criteria, it is also liable for any substandard
performance on their part. This does not apply in air transport.
Airlines have no influence on the airport as runway provider
or on air traffic control. The Committee feels it would be
unreasonable to make air carriers liable for shortcomings in
these areas. Particularly in the field of air traffic control, the
Commission is called on to submit and implement suitable
proposals for improving the current situation.

Other legislation already contains a host of provisions
3.3.
to protect air
travellers from sharp practices (Directive
93/13/EEC on unfair terms in consumer contracts) (2). Enforce-
ment of this protective legislation is no longer a matter for the
Commission, but falls within the remit of the ordinary courts
and ultimately the ECJ. Many of the problems cited by the
Commission are covered by Directive 93/13/EEC. However,
consumer rights and fares — insofar as they can be specified —
must be made transparent. The rights of consumers affected

3.4.
The Committee fully endorses the view that Com-
munity legislation should not compromise companies’ inter-
national competitiveness. Air safety must, however, always
have top priority, and an appropriate level of passenger
protection must be guaranteed.

3.5.
It is possible to book flights and issue tickets 365 days
in advance. In so far as the potential passenger is simply
making a non-binding declaration of intent, the Committee
regards a fare increase by the airline as not being inappropriate.
However, once there is a binding contract between the
passenger and the airline or the ticket has been paid for, the
Committee thinks that the airline should not be allowed to
increase the fare.

As the Commission itself notes, airlines are obliged
3.6.
under the current CRS code to inform passengers which carrier
is operating the flight. At the same time, the Committee thinks
that legislation should be enacted to close any legal gaps that
may still remain.

3.7.
The issue of which contract conditions apply in the
case of code-sharing is normally resolved in the conditions of
carriage of the particular airline. Moreover, under existing
contract law,
liability is always borne by the contracting
carrier, and possibly by the operating carrier as well. Air
passengers thus already have at least one clearly defined party
to whom a claim may be made (the contracting carrier) and
will in many cases have two. For the sake of legal certainty, the
Committee nonetheless thinks that the question of liability on
code-sharing flights must be the subject of voluntary or
statutory arrangements.

3.8.
The Committee supports the blanket transferability of
air tickets, whereby steps must be taken to ensure that the
conditions governing special fares cannot be systematically
circumvented by ‘phantom bookings’ which are then passed
on to late bookers. The number of no-shows might also rise,
since agents would not sell their entire reserve stock of booked
flights. This could disadvantage passengers on the waiting list
for a specific flight.
the Committee
welcomes the new IATA conditions of carriage (period of
validity of a ticket, free baggage allowance, refunds, liability
for damage).

In this connection,

(1) Council Resolution of 2 October 2000 on the rights of air

passengers, OJ C 293, 14.10.2000, p. 1.

(2) Council Directive 93/13/EEC of 5.4.1993 on unfair terms in

consumer contracts (OJ L 95, 21.4.1993, p. 29).

(3) Opinion of the Economic and Social Committee on the Proposal
for a Council Directive on unfair terms in consumer contracts (OJ
C 159, 17.6.1991, p. 34).

C 155/8

EN

Official Journal of the European Communities

29.5.2001

3.9.
The rule on the sequential use of flight coupons is part
of the product and price structure. It enables account to be
taken of different market conditions and currency areas. More
time-consuming indirect flights can be made attractive by
making them cheaper than non-stop services. Dispensing with
this rule would remove company control over pricing. This
also applies to the reverse use of outward and return flight
coupons. Incidentally, this arrangement is also provided for
under the IATA’s conditions of carriage.

3.10.
The Committee fully supports the call for universal
standards for the carriage of disabled people across the entire
system. The Committee feels it is important that universal
standards also apply to international journeys. These standards
should be included in any move to align transport conditions
on North Atlantic routes.

3.11.
The Committee endorses Commission moves to
improve the rights of disabled people and, for example, to
introduce legislation providing them with assistance to and
from the aircraft free of charge or ensuring that the cost
thereof is covered. The Committee welcomes uniform and
transparent rules on restrictions placed on the carriage of
disabled people for safety reasons.

3.12.
The Committee feels that the information to be
provided to air passengers under the Commission proposal
should be as comprehensive as possible.

3.13.
As for the proposed voluntary commitment to ensur-
ing baggage delivery within a given time, a distinction must be
made as to the service provider. This is partly the airport,
which is responsible for infrastructure in particular, but in
some cases it is the airline. The Commission is therefore asked
to find a voluntary solution with the actual party responsible
for baggage delivery, which will improve matters on this front.
A counter-objection to the call for higher limits on liability for
baggage is that this issue will be covered under the Montreal
Convention.
the expected ratification of
the Montreal Convention, the Committee considers that a
voluntary commitment to apply this convention straightaway
would make sense and be in the consumer’s interest.

In the light of

the ACI
The Committee welcomes the work of
3.14.
(Airport Council International) to develop standards for Euro-
pean airports. Realistically, as with all transport operations,
compliance with these standards cannot be expected at
absolute peak times, such as the start of holiday periods. In
any case, airport design standards such as transfer times,
walking distances etc. are contingent on local conditions and

cannot be laid down in an arbitrary way. Capacity cannot be
increased at will. The Committee thinks it would be useful for
each airport to indicate the voluntary services it offers.

3.15.
The Committee feels that the inconvenience caused
by delays cannot be equated with the problems caused by
cancellation or denied boarding. Minor delays should not in
principle trigger the payment of compensation. However, a
reduction in the fare should be considered where a long delay
is demonstrably the fault of the airline. On the other hand,
passengers denied boarding because of overbooking must be
compensated. It is essential to care for passengers while they
are waiting — an obligation which should be made incumbent
on airlines. The right to a fare refund should continue to apply
only in the event of non-carriage.

The Committee shares the Commission’s view that,
3.16.
in the case of delays, it is difficult to pass on the costs involved
to the responsible party. However, in accordance with the
principle that whoever is responsible pays, it should be possible
to claim compensation from the party which has caused the
delay if this can be proved. In air transport, safety must
nevertheless always come first in any commercial decision.

3.17.
The standardisation in passenger care sought by the
Commission should be secured by introducing legislation on
minimum standards. The Committee feels, however, that the
Commission should aim for a high level of passenger care and
should call on airports and airlines to make improvements on
this front, inter alia by concluding voluntary agreements.

3.18.
Consumer reports are to be drawn up to make airline
and airport performance standards more transparent. The
example given is that of the United States. The USA is a
homogenous market. In the EU, on the other hand, there is
much less market comparability. Hence, a comparison can be
made only of equivalent airline and airport services for which
the airlines and airports themselves are responsible. The
Commission should ensure a fair procedure if its aim is to
make performance standards more transparent and to offer
passengers the fullest information possible.

3.19.
Little would be gained from providing data on the
proportion of low-price tickets. In addition to normal economy
fares, a whole range of special fares is offered on a seasonal
basis only. On each route, the proportion of lowest-fare tickets
varies since this is a sales management tool designed to fill any
residual capacity. The transparency being called for with regard
to fares is difficult to implement meaningfully, because fares
change almost daily. However, despite these difficulties, the
Committee feels that passengers should be given as much
information as possible in a way that
is as simple and
transparent as possible.

29.5.2001

EN

Official Journal of the European Communities

C 155/9

3.20.
The Committee supports the disputes settlement
scheme proposed by the Commission if a practicable procedure
can be found.

3.21.
Any passengers’ organisation must have legitimate
credentials, i.e. it must be representative of the consumer. A
suitable proposal to this effect has not yet been presented.
Consumer associations should therefore be involved in the
search for appropriate machinery to represent air passengers’
interests.

4. Concluding remarks

The Committee backs the Commission’s intention to

4.1.
improve the protection of air passengers’ interests.

4.2.
The Committee feels that legislation should be enacted
laying down minimum requirements for air passengers’ inalien-
able rights and that airlines and airports should enter into
voluntary agreements which supplement this legislation. The
voluntary agreements by airlines should certainly be in place
by May 2001. If voluntary agreements by airlines and airports
fail to address consumer rights adequately, the Committee
feels that the entire field should be regulated by legislation.

4.4.
The Committee supports the blanket transferability of
air tickets, whereby steps must be taken to ensure that the
conditions governing special fares cannot be systematically
circumvented by ‘phantom bookings’ which are then passed
on to late bookers. The Committee also welcomes the new
IATA conditions of carriage (period of validity of a ticket, free
baggage allowance, refunds, liability for damage).

The Committee endorses Commission moves

4.5.
to
improve the rights of disabled people and, for example, to
provide them with assistance to and from the aircraft free of
charge or to ensure that the cost thereof is covered.

4.6.
The Committee feels that the Commission should
ensure a fair procedure and compare equivalent services in the
consumer reports it is planning in a bid to make airline and
airport performance standards more transparent.

The Committee supports

4.7.
the disputes settlement
scheme proposed by the Commission if a practicable procedure
can be found.

The Committee feels

4.8.
that consumer associations
should be involved in establishing machinery to represent air
passengers’ interests.

4.3.
Both voluntary and statutory arrangements must make
consumer rights and fares more transparent. The rights of
consumers affected by overbookings (denied boarding) must
be improved.

4.9.
The Committee feels that this would serve both the
Commission’s aims and the interests of consumers, workers
and employers in Europe.

Brussels, 28 March 2001.

The President

of the Economic and Social Committee

Göke FRERICHS