Select Committee on European Scrutiny Twenty-Sixth Report


RIGHTS OF AIR PASSENGERS


(21414)

9826/00

COM(00) 365


Commission Communication on the protection of air passengers in the European Union.


Legal base:
Document originated: 21 June 2000
Forwarded to the Council: 22 June 2000
Deposited in Parliament: 11 July 2000
Department: Environment, Transport and the Regions
Basis of consideration: EM of 19 July 2000
Previous Committee Report: None
To be discussed in Council: No date known
Committee's assessment: Politically important
Committee's decision: Cleared

Background

  20.1  The single market for aviation was completed in 1997. Any Community carrier is entitled to offer services in any Member State. Competition has increased on many routes and the volume of passengers continues to grow. The Community has already adopted some legislation to protect the interests of air passengers, covering compensation for denied-boarding, liability in case of accidents, computer reservation systems and package tours. Proposals are currently under consideration to strengthen some of this legislation, for example, on denied-boarding compensation[41], and to bring Community law into line with the 1999 Montreal Convention on the liability of air carriers in the event of accidents[42].

  20.2  Earlier this year, the Commission issued a consultative document[43] on improving rights for air passengers.

The document

  20.3  In the light of responses to its consultation document, the Commission has published a Communication outlining a series of legislative and non-legislative proposals for strengthening passengers' rights in a number of areas. In his Explanatory Memorandum of 19 July 2000, the Minister for Transport at the Department of Environment, Transport and the Regions (the Rt. Hon. Lord Macdonald of Tradeston) says that:

"The Commission Communication envisages both legislative and non-legislative proposals. Subject to developments, the Commission may eventually propose legislation in order to:

"—  enable delayed passengers to receive reimbursement or to continue their journeys on an alternative flight;

"—  set minimum requirements for contracts in air travel; and

"—  require airlines to supply data necessary for regular consumer reports.

"Non-legislative initiatives are likely to focus on:

"—  improving service quality;

"—  ensuring adequate care is available for delayed passengers;

"—  setting up simple procedures for lodging complaints and settling disputes out of court; and

"—  promoting voluntary design and quality standards for airports."

  20.4  The Commission will propose the non-legislative initiatives in 2000 and 2001 and may propose legislation, after consultation, in 2001.

  20.5  In addition, this year the Commission will discuss with Member States and passenger organisations how best to strengthen passenger representation; and review sales over the Internet, including their conformity with Competition rules and the Code of Conduct for computerised reservation systems. In 2001 the Commission will study the effects of code-sharing, and whether to continue to allow passenger tariff co-ordination to assist in interlining; and assess the impact of cabin conditions on passengers' health.

The Government's view

  20.6  The Minister says:

"Policy on individual legislative proposals will be set out in an Explanatory Memorandum if and when proposals are submitted. But the Government can generally support the strategy as described in the Communication. The Government believes the Communication strikes a fair balance between the interests of the airlines and the interests of their passengers, and welcomes the Commission's declared intention to bring aviation into line with standards of consumer service now expected in other sectors whilst avoiding over-regulation or the restriction of competition. Other things being equal, the Government would prefer non-legislative action, but is aware that the industry has sometimes been cautious in its response to such initiatives in the past".

Conclusion

  20.7  Air passengers in Europe have benefited considerably from completion of the single market. Competition has brought lower real prices and more choice, leading to increasing demand. But these benefits have not been accompanied by the strengthening of consumer rights, and the individual is not well placed to understand, let alone contest, how the increasingly complex arrangements affect him or her when things go wrong. Further action at a Community level to strengthen consumer rights looks appropriate in principle; however, there clearly is a risk — recognised in the Commission's document and by the Government — that over-regulation could increase costs and hamper co-operation between airlines, to the detriment of consumers. So care will be needed to get the balance right between legislative and non-legislative action — for example, voluntary codes — and between clarifying existing rights through better information for consumers, and extending those rights. We shall consider and report on individual proposals as they come forward. Meanwhile, we clear this document.


41  (19487) 12284/98; see HC 155-xl (1997-98), paragraph 8 (11 November 1998). Back

42  (21361) 9347/00; see HC 23-xxv (1999-2000), paragraph 14 (19 July 2000). Back

43  Air passenger rights in the European Union. A consultative document on consumer protection in air transportBack


 
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