travelling-blogger

comments

Airlines have warned that fares will inevitably rise as a result of a Supreme Court decision upholding compensation payments to passengers who have suffered delays.

Two million passengers a year whose flights are delayed by technical faults could now be entitled to hundreds of pounds each after judges found such problems are the sole responsibility of the airline. 

However, airlines and aviation experts have warned that the cost of funding compensation payments will have to be handed back to the consumer.

One previous estimate, by an airline industry expert, estimated that fares could rise by £5 per ticket.  

Landmark Jet2 and Thomson's applications to appeal against two flight delay compensation cases have been rejected, paving the way for thousands of new claims

Thousands of claims against airlines over flight delays had been put on hold until the Supreme Court rulings

Jet2 and Thomson had appealed against the Court of Appeal's decision in two cases about the consumer.

Both Jet2 and Thomson had appealed against previous court decisions. 

In the Jet2 case a passenger successfully challenged the airline's view that a 27-hour delay to an October 2011 flight amounted to an 'extraordinary circumstance'.

The upholding of the Thomson Airways case, which goes back to 2006, confirms consumers in England and Wales have six years to bring a claim for flight delay compensation.

A spokesperson for Monarch told MailOnline that the current system was not sustainable.

'Like the rest of the industry we are disappointed by today's ruling by the Supreme Court. The current application of Regulation EU261 has been extended beyond its original scope and does not offer a fair model for low cost, leisure airlines. 

'Ultimately, the customer will end up bearing additional costs through increased fares across the industry. 

'We would encourage the EU to revisit and reform the Regulation to reflect the true nature of operating a European airline.

'We don't yet know how much fares will increase. We are focusing on settling the outstanding claims now that there is clarification around the application of the regulation in relation to technical issues.' 

Martin Lewis, creator and founder of MoneySavingExpert.com, said: 'The clarity of this ruling is crucial for thousands frustrated by the airlines' stubborn attitude on this issue.

'Quite simply, the ruling states airlines are responsible for technical faults in all but extraordinary circumstances and that you can reclaim back at least six years. 

Cheshire-based law firm Bott & Co said the Jet2 case could lead to claims of around £876 million a year from passengers while the Thomson case could lead to an estimated £3.89 billion in compensation.

'This is a landmark day for passengers everywhere,' said David Bott, senior partner at Bott & Co. 

THE LANDMARK CASES AIRLINES TRIED TO HAVE THROWN OUT

 

DAWSON V THOMSON

James Dawson, 41, of Peterborough, can keep the £975 plus interest (a total of £1,488.73) that he was awarded from Thomson Airways after his flight with his wife from Gatwick to the Dominican Republic on Christmas Day 2006 was delayed six hours 26 minutes.

Thomson appealed the order for payment made by Judge Michael Yelton at Cambridge County Court on the grounds that it was outside the two year limitation period for claims under the 1999 Montreal Convention.

But Lord Justice Moore-Bick unanimously agreed that claims can be made up to six years after the event under European law, and that Mr Dawson was just inside that limit. Solicitors Bott & Co says decision affects more than 11m passengers.

HUZAR V JET2 

Ronald Huzar, 58, of Stockport, won his battle with Jet2.com after his flight from Malaga to Manchester in 2011 was delayed for 27 hours.

The airline claimed a technical fault was 'unforeseeable' and they shouldn't have to pay compensation.

But the judges ruled the fault was not an 'extraordinary circumstance' and they must pay.

After his victory Mr Huzar said: 'I am absolutely delighted with the decision. After everything I have been through to get to this point it's a fantastic day.

'I always hoped that we would get a positive outcome and it's nice to get to this milestone. The result in my favour should help passengers throughout the country who have experienced similar difficulties to me.'

Nathan Stower, the chief executive of the body representing UK airlines, the British Air Transport Association, said: 'The Supreme Court decision is both surprising and disappointing.

'UK airlines support the principle of passenger protection and always meet their legal obligations. However, the rules should be clear, affordable and proportionate for the sake of passengers and airlines.

'The current system fails those tests and this decision will further increase costs which ultimately are borne by all passengers.'