MEPs will push up flight prices to create compensation fund

Strasbourg, 25th November 2009

MEPs will push up flight prices to create compensation fund

There are better ways to protect consumers from airline bankruptcy, ECR says

Strasbourg, 25th November 2009 -- A demand by MEPs today to create an EU fund for the victims of airline bankruptcy is the wrong approach to the problem, which would add to the plethora of extra charges placed onto an airline ticket, ECR transport spokesman Roberts Zile MEP and transport committee member Jacqueline Foster MEP, warned today.

The European Parliament has passed a resolution calling for a 'guarantee' fund to be created that would compensate passengers in the case of airline bankruptcy. However, such a fund would inevitably have to be funded by the consumer, who should already have taken out an insurance policy to protect against such unfortunate eventualities.

Instead of a new tax on travelling, the ECR group put forward its own resolution calling on National Aviation Authorities/Regulators to uphold existing obligations such as regularly carrying out financial status checks of airlines and exercising their right to revoke airline operating licenses before liquidation occurs. The ECR has also called for the inclusion of compulsory information regarding risk, insurance options and other protective mechanisms at the time of ticket purchase.

Mr Zile said:

"There are better ways to protect consumers from airline bankruptcy and passenger inconvenience before it occurs, rather than creating an EU fund that will add another cost to a flight ticket.

"Consumers are already frustrated by the number of airport taxes, security charges and duties that are added to the cost of a flight, sometimes making the charges more than the cost of the flight itself.

"Airline bankruptcy is a rare but extremely unfortunate occurrence. We can better protect consumers by ensuring that national regulators step up their monitoring of airlines' financial status before liquidation occurs and travellers are left stranded."

Mrs Foster said:

"There should be an obligation for airlines to inform passengers when they purchase flight tickets, about available insurance options and other protective mechanisms.

"There are better ways of protecting passengers than a blanket rise in passenger duties. The resolution that we put forward offers the best way of proceeding.

"Once again the European Parliament is trying to use a sledgehammer to crack a nut."

Contact:
 
Mr Roberts Zile on +33 (0)3 88 1 45224
Mrs Jacqueline Foster on +33 (0)3 88 145674

ECR Press Office
James Holtum on +32 473 861762

 

Welcome to the website of the European Conservatives and Reformists Group in the European Parliament.

In July 2009, the ECR was formed by eight political parties who share the common goals of opposition to Euro-federalism and of fundamental reform of the European Union to make it more accountable, transparent and responsive to the needs of the people.

This website is intended to provide you with information about our work and our political priorities, and to provide you with an opportunity to let us know your views.

29th June 2010 - ECR group meeting with Herman Van Rompuy, President of the European Council

19th July - 30th August - Brussels