Passengers Being Charged £25 for Unsuccessful Compensation Claims

Posted on December, 20 2016 by Blueway Limited

Passengers Being Charged £25 for Unsuccessful Compensation Claims

Flight delays

In recent flight delay and compensation news, it is believed that passengers are being charged a £25 fine for unsuccessful claims. Present EU rules allow passengers to claim up to 600 Euros or 510 British Pounds as compensation for flight delays. However, for the compensation claim to be valid, the flight delay should have lasted at least 3 hours.

Unfortunately, agencies providing services with regard to compensation claims insist that passengers pay up a charge of 25 British Pounds for unsuccessful claims. This has become a cause for concern as it tends to discourage passengers from making claims. It is believed that passengers flying through Thomson, EasyJet, Thomas Cook, and British Airways have been asked to pay such a fee.

Under current regulations, the value of the claim is determined according to the length and distance of the flight. When a claim is rejected or if the outcome is not as expected, passengers have the freedom to hire independent agencies in helping decide the fairness of the result.

CAA hands over responsibilities

In the beginning of 2016, the CAA (Civil Aviation Authority) handed over compensation related dispute settling to independent agencies. The CAA itself has been responsible for winning 17 million pounds in compensation claims. The agency also offered its services for free. Now, there are 3 independent agencies approved by the CAA that provide the same services. The 3 independent agencies are The Retail Ombudsman Service, The Centre for Effective Dispute Resolution (CEDR) and NetNeutrals.

The Retail Ombudsman handles compensation claims for Flybe, Air Canada, RyanAir, and 11 other airline services, without charging a fee. The CEDR handles the same for Thomas Cook, EasyJet, Thomson, and British Airways. However, this agency does charge a fee. NetNeutrals is yet to have an airline sign up for its services. Even so, the agency charges a fee of 10 British Pounds. Passengers flying by airlines that have not signed up with any of the 3 agencies can have their claims administered by the CAA.

What is a valid flight delay compensation claim?

According to the EU261 rule, passengers can claim for compensation when the delayed flight has departed from an EU country or Norway, Iceland, Liechtenstein, and Switzerland. Passengers flying in an EU Airline to an EU country or to Norway, Iceland, Liechtenstein, and Switzerland can also claim flight delay compensation.

The maximum claim amount is 600 Euros, provided the delay has occurred for over 3 hours.

Another key condition is that the delay should have been caused by the airline. “Act of God” situations do not fall under the rule. To put it simply, delays that occur as a result of industrial action, technical issues, bad weather or security related issues cannot be claimed.As for the validity period of the claim, things can get quite confusing. For example, passengers in England or Wales have 6 years to file a claim, while those in Scotland need to file their claim in 5 years.

Now, with the new fee system being implemented, some predict a drop in the number of delay claims. Airline authorities are yet to present a solution.

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