Ryanair ordered to pay out to customers stranded after 2010 Icelandic volcano eruption
Ryanair was today ordered to pay compensation to passengers stranded after the 2010 volcano eruption in Iceland.
The European Court of Justice ruled that airlines face an obligation to provide care if passengers are left stranded due to flight cancellations arising from "extraordinary circumstances". That includes refreshments, meals, hotel accommodation and transport between the airport and place of accommodation, as well as communication costs.
The ruling comes after an Irish customer, who was stranded for a week during the Eyjafjallajokull volcano eruption, claimed costs from the airline.
Denise McDonagh was stranded in Faro, Portugal while waiting for a flight to Dublin for a week, during the ash cloud crisis. She was not provided with any care and demanded compensation of almost 1,130 euro to cover meals, refreshments, accommodation and transport.
The court recognised claims could have "substantial negative economic consequences" for airlines, but said a high level of protection must be afforded to passengers. But airlines could pass on such costs in increased ticket prices.
Ryanair has said it paid out 26.1 million euro to stranded passengers but it has refused many claims, citing their "excessive" cost. The court said passengers can only claim "reasonable" costs.
“Ryanair regrets the decision of the European Court which now allows passengers to claim for flight delays which are clearly and unambiguously outside of an airline’s control.
When governments closed large swathes of European airspace unnecessarily in response to non-existent ‘ash clouds’ over Ireland the UK and continental Europe in 2010, the travel insurance companies escaped liability by claiming it was an ‘act of God’.
Today’s ruling by the European Court now makes the airlines the insurer of last resort even when in the majority of cases (such as ATC delays or national strikes in Europe) these delays are entirely beyond an airline’s control.
Today’s decision will materially increase the cost of flying across Europe and consumer airfares will increase as airlines will be obliged to recover the cost of these claims from their customers, because the defective European regulation does not allow us to recover such costs from the governments or unions who are responsible for over 95% of flight delays in Europe.”
sn26567 wrote:EU COURT DECISION WILL INCREASE CONSUMER AIRFARES
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Today’s decision will materially increase the cost of flying across Europe and consumer airfares will increase as airlines will be obliged to recover the cost of these claims from their customers, because the defective European regulation does not allow us to recover such costs from the governments or unions who are responsible for over 95% of flight delays in Europe.
Poor attempt by Ryanair to get the sympathy from the public against EU legislation. There actually two possibilities: increase the fares or lower the profit. With the huge amount of tax payers money that Ryanair receives from regional governments or authorities, there is no need for them to increase its fares.
The reasons why the Court rules in favour of the passenger, are set out here = press release from the EU Court of Justice with link to the full text of the verdict: