Wednesday 14 November 2007
BA tries to keep lid on flight cancellation claims caused by strike action
www.EUclaim.co.uk takes on airlines to secure compensation for passengers under EU Regulation
14th November – A Dutch company that has set up a web site called www.EUclaim.co.uk to fight for compensation for passengers who suffer flight cancellations or long delays, believes that British Airways is trying ‘keep the lid’ on claims made as a result of cabin crew strikes between 30 – 31 of January this year. After months of negotiations British Airways has offered to pay EUclaim compensation for two passengers stranded as a result of the strike action, but under a strict clause of confidentiality and without admitting liability.
EUclaim estimates that the full cost of compensation for all passengers affected by the 2 day industrial dispute and subsequent disruption with some 70 cancelled flights and many rerouted and hence severely delayed flights could run into millions of euros.
The claims have been made under little-publicised EC regulations 261/2004 that was introduced in February 2004 giving new rules on compensation and assistance for air passengers in the event of denied boarding, cancellations, long delays and involuntary downgrading. Passengers who have their flights cancelled or replaced are entitled to compensation up to 600 euros – unless it is the result of ‘extraordinary circumstances’.
Article 5 of the regulations states that if an airline cancels a flight, it can only do so up to two weeks before departure without being responsible for compensating its passengers. “The problem for British Airways is that a strike caused by failing collective labour agreement negotiations cannot be seen as an extraordinary circumstance, particularly as in this instance, the BA cabin crew strike action had been publicly announced,” says EUclaim CEO, Hendrik Noorderhaven.
“The flights were cancelled only a few days beforehand and British Airways should have informed passengers at the time of booking that there were planned strikes. If you leave thousands of passengers stranded all over the world then you must take responsibility,” says Noorderhaven who stands behind the claims.
EUclaim took up the battle for the disgruntled strike-hit BA passengers and after several months of negotiations BA settled out of court, paying damages and all costs made on behalf of three passengers who were stranded in Cape Town after their BA flight to Amsterdam was cancelled on 2 February 2007 as a result of the strike. But when two further claims for the same flight were submitted by EUclaim, BA agreed to pay compensation but subject to a strict confidentiality agreement and also continued to reject any admission of liability.
“Having accepted the first claims without any strings attached, it seems very strange that BA is now insisting on confidentiality,” says Noorderhaven: “it would appear that BA is keen to keep these settlements quiet in order to prevent other passengers making similar claims.”
EUclaim will now take the issue to the Lower Court in the Netherlands to judge on the question as to whether the BA strike is an ‘exceptional circumstance’. If the ruling, as Noorderhaven expects, comes out in EUclaim’s favour, it will create a legal precedence that will have a major impact, with airlines facing potential damages that could run into millions of euros and changing the manner in which airlines deal with industrial disputes. Passengers effected by the BA strike or other cancelled flights can file a claim at www.euclaim.co.uk, while numerous international companies have already approached EUclaim to represent them in gaining financial damages for failed business trips.
EUclaim is also now investigating a recent strike by Air France employees to assess whether, like British Airways, it was an avoidable corporate decision.
EUclaim uses international 24x7 flight data collected in real time to determine the validity of compensation claims. Passengers can use an online ‘Claim calculator’ to see instantly if they are entitled to compensation and by presenting the right burden of proof to the airline and by following the correct legal steps EUclaim increases the probability of a successful claim. To date, EUclaim has secured compensation for over 400 passengers in The Netherlands from 20 different airlines. Claims for compensation for a further 1,400 passengers from 40 airlines are currently being processed. The Regulation 261/2004 applies to flights from and within the European Union and to flights outside the EU to an airport situated in the EU operated by EU-registered carriers. The Regulations also require Member States to set up enforcement bodies with the ability to impose dissuasive sanctions. But earlier this year, an EU report expressed some concerns that the airlines and Member States were not doing enough.
”Although there is no doubt that air passengers enjoy better protection today, we must make sure that airlines and Member States fully comply with their obligations,” stressed Commission Vice-President Jacques Barrot in charge of transport. On the 4th of April this year he announced: “The Commission will give them six months to make the air passengers regulation work and will provide them with full support in that process."