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low-cost carries hit out at compensation

(24 October 2002)

LOW-COST airlines are lobbying hard against European Union plans to hand passengers £250 compensation for cancelled or delayed flights.

Initial approval was passed in Strasbourg last week to hand passengers compensation for cancelled or delayed flights of up to £250 for short-haul flights or £380 for long-haul, plus the offer of a refund or an alternative ticket.

The budget carriers fear such a move will force ticket prices to rocket and could ultimately push airlines out of business.

EasyJet, Ryanair, Buzz and Virgin Express have joined forces to battle the legislation. An EasyJet spokeswoman said: “We believe compensation should by a percentage of the airfare paid. The current proposals are ridiculous.” 

The proposals are now waiting to be ratified by national governments after been given the green light by Euro MPs last week and should be in place next year.

MyTravelLite managing director Tim Jeans said: “The people who will end up getting hurt are the passengers because airlines will increase their prices.”

 

Michael Clarke