Tuesday, 1 March 2016

The early bird catches no returns


Full article on economist.com

Few issues drive a wedge between airlines and their customers like the thorny matter of compensation. In Europe, anyone whose flight is delayed by more than three hours can claim between €250 and €600 ($270 and $650) for the inconvenience, provided the delay is not caused by “extraordinary circumstances”. Airlines, as you would expect, interpret force majeure more broadly than passengers, lumping all manner of disruptions under the get-out clause. Along with extreme weather, terrorism and industrial action—events that are universally deemed “extraordinary”—airlines have attempted to withhold payment over bird strikes and technical faults. Successive court rulings have come down on the side of passengers, forcing the industry to stump up compensation more often...