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Share Price Information for easyJet (EZJ)

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Share Price: 524.80
Bid: 525.40
Ask: 525.80
Change: 14.60 (2.86%)
Spread: 0.40 (0.076%)
Open: 512.00
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Low: 510.20
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Airlines flying from UK could face more compensation claims

Thu, 12th Jun 2014 16:49

LONDON, June 12 (Reuters) - Airlines flying out of Britaincould face large rises in the number of passengers who can claimcompensation for delayed and cancelled flights after a courtruling on Thursday.

Britain's air regulator said that airlines would no longerbe able to cite standard technical faults as a reason for notpaying compensation after a court of appeal ruled in favour of apassenger.

The only circumstance when an airline would be able to avoidpaying compensation would be if the technical fault was a resultof an "out of the ordinary" event such as a lightning strike,extreme winter weather or strike action.

Under the current interpretation of the rules, a technicalissue which causes flight disruption can be deemed an"extraordinary circumstance" and airlines do not have tocompensate passengers. Passengers are entitled to compensationif their flight is cancelled or delayed by more than three hourson arrival.

The ruling will now be subject to a further appeal by Jet2,a small British airline based in Leeds, northern England, whichis at the centre of the court case. It will take its case toBritain's Supreme Court.

"If the Court of Appeal's decision stands, it will mean alarge increase in the number of passengers entitled tocompensation for delayed and cancelled flights," Britain's airregulator, the Civil Aviation Authority said in a statement.

Jet2 said in a statement that the latest judgementcontradicted an agreement between European air bodies thatunexpected technical defects were considered extraordinary forthe purposes of compensation.

Passengers can make claims retrospectively. Anyone who hasbeen affected by delays because of technical reasons over thelast six years and has not already had a claim rejected, canmake a claim, the CAA said.

Passengers can claim between 250 and 600 euros incompensation depending on the length of the journey.

A spokesman for British Airways, part of IAG, saidit was assessing the implications of the legal judgement.easyJet said it would study the ruling in more detail. (Reporting by Sarah Young; Editing by Elaine Hardcastle)

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