Documents considered by the Committee on 9 July 2014 - European Scrutiny Committee Contents


2 Civil aviation: passenger protection

Committee's assessment Politically important
Committee's decisionNot cleared from scrutiny; further information awaited

Document detailsDraft Regulation concerning denied boarding, cancellation or long delay of flights and baggage problems
Legal baseArticle 100(2) TFEU; co-decision; QMV
DepartmentTransport

Summary and Committee's conclusions

2.1 With this draft Regulation the Commission proposes a range of changes to airline passenger protection legislation to reinforce enforcement policies and procedures, improve passenger rights and re-address the financial obligations, in some circumstances, imposed on airlines.

2.2 We have heard previously about a range of issues with the proposal which need to be addressed, including the question of its applicability to Gibraltar Airport. We learn now that the outgoing Greek Presidency failed to achieve any form of agreement on the proposal and that it has not been identified as a priority by the incoming Italian Presidency.

2.3 We will keep this document under scrutiny pending any report of further developments, when we would expect also to have previously promised information about the Government's cost benefit analyses of the draft Regulation.

Full details of the document: Draft Regulation amending Regulation (EC) No. 261/2004 establishing common rules on compensation and assistance to passengers in the event of denied boarding and of cancellation or long delay of flights and Regulation (EC) No. 2027/97 on air carrier liability in respect of the carriage of passengers and their baggage by air: (34777), 7615/13 + ADDs 1-2, COM(13) 130.

Background

2.4 Regulation (EC) No. 261/2004 lays down common rules on compensation and assistance to air passengers in the event of denied boarding and of cancellation or delay of flights. It is enforced in the UK by the Civil Aviation Authority (CAA) as the competent National Enforcement Body (NEB). Regulation (EC) No. 2027/97 deals with air carrier liability in the event of claims for compensation in the event of death or injury to passengers and the liability limits for delay and mishandled baggage. The Regulation translates parts of the Montreal Convention into EU law.

2.5 With this draft Regulation, to amend Regulation (EC) No. 261/2004 and Regulation (EC) No. 2027/97, the Commission proposes a range of changes to reinforce enforcement policies and procedures, improve passenger rights and re-address the financial obligations, in some circumstances, imposed on airlines.

2.6 When we first considered this proposal, in April 2013, we heard that, whilst the Government welcomed some aspects of the proposal as they related to airline costs, it was carefully considering the range of other passenger focussed proposals, recognising that these might provide benefits and protection to the consumer, but might also lead to increased costs for UK airlines. We heard subsequently about efforts, in accordance with the 2006 Cordoba Agreement, to remove a clause suspending application of the legislation to Gibraltar's Airport, (in the legislation to be amended by this proposal, as was normal practice when it was adopted).

2.7 When we last considered the draft Regulation we heard that:

·  the European Parliament had in February adopted a wide range of amendments to the proposal, not all of which would be acceptable to the Government;

·  the Presidency was expected to push hard for a political agreement, or possibly a partial form of political agreement, at the Transport Council on 5 June;

·  however, it was not yet clear whether this was achievable as a number of outstanding issues remained; and

·  the Gibraltar Airport issue was also still unresolved.

2.8 We looked forward to the further information promised us, including about the Government's cost benefit analyses. Meanwhile the document remained under scrutiny. However, we also observed that we would expect the Government to vote against any Council text that did not properly resolve the Gibraltar issue.

The Minister's letter of 26 June 2014

2.9 The Parliamentary Under-Secretary of State, Department for Transport (Mr Robert Goodwill), now tells us that:

·  despite the intense work undertaken in Council working group negotiations, it was clear that further work and time would be needed to find compromises on a number of significant outstanding issues, specifically the trigger points for when delay compensation is due and connecting flights;

·  the issue over Gibraltar's suspension from the Regulation has also not been resolved;

·  as a result, the Greek Presidency decided not to seek any form of agreement at the Transport Council on 5 June and instead submitted a progress report; and

·  this dossier has not been identified as a priority by the incoming Italian Presidency.

Previous Committee Reports

Thirty-ninth Report HC 86-xxxviii (2012-13), chapter 5 (17 April 2013); Thirteenth Report HC 83-xiii (2013-14), chapter 9 (4 September 2013) and Forty-eighth Report HC 83-xliii (2013-14), chapter 4 (7 May 2014).


 
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Prepared 24 July 2014