UK Overhauls Airline Passenger Compensation Scheme

By Anne Bucher | February 10, 2022

Category: Legal News

Serious young man is looking for right direction on information board at the airport. He is standing near his suitcase — (Photo Credit: Olena Yakobchuk/Shutterstock)

Airline Passenger Compensation Scheme Overview:

Who: The Department for Transport announced that it plans to overhaul the air passenger compensation scheme for flights within the UK.
Why: The proposed scheme will offer compensation for delays of one hour or more and will be based on the length of the delay and the ticket price.
Where: The proposed airline passenger compensation scheme will only apply to flights within the UK.

The Department for Transport announced last week that it plans to overhaul air passengers’ compensation for flights within the United Kingdom.

The DfT is proposing a compensation scheme similar to the one used to compensate passengers for train delays. Like the train compensation scheme, the amount of the air passenger’s refund would depend on the ticket price and the length of the delay.

“These changes are about offering consumers easier, simpler routes to compensation than were available under EU rules with passengers on domestic flights able to claim money back for delays of between one and three hours, which is not currently available,” a DfT spokesperson said.

A delay of one to two hours would result in compensation of 25% of the ticket price, a delay of two to three hours would be compensated at 50% of the ticket price and delays of three hours or more would result in a full refund of the ticket price.

Under the current compensation scheme, air passengers are not entitled to compensation until a three-hour delay at which point they would receive a payment of £220 unless the delay was caused by extraordinary circumstances like weather.

Average Air Traveler Compensation Will Drop Significantly, Legal Firm Warns

Although this compensation scheme sounds like a good deal for air travelers in theory, some are concerned that the airlines will end up reaping the benefits because passengers may be unlikely to file a claim for such a small amount of compensation.

Bott and Co, a legal firm that specialises in airline flight compensation, notes that the average payout will decrease from £220 to £23.60.

“In theory, the changes expose the airlines to more compensation,” Bott and Co said. “However, the consultation acknowledges that, in reality, far fewer people will actually have the impetus to make a claim.”

If compensation is going to be reduced to such a low level, then it should be paid out automatically, the company argues.

Other consumer advocates believe the proposed scheme will be beneficial to travelers.

Proposed Scheme Only Applies to Flights within UK

The proposed air passenger compensation scheme will only apply to flights within the UK. Certain rules that were adopted before Britain left the European Union will still apply to international flights in and out of airports in the UK.

It is not clear if the refund will include luggage fees or any other extra payments.

The DfT has also proposed that all airlines must agree to an aviation alternative dispute resolution plan that would purportedly make it easier for passengers to make complaints without going to court. Currently, such membership by airlines is voluntary.

Additionally, the DfT proposes strengthening the Civil Aviation Authority’s powers, including giving it the right to fine airlines for breaches.

Guardian Money expressed concern that there could be unintended consequences from this proposed air traveler compensation scheme. Before the EU rules were introduced, airlines reportedly often canceled flights at the last minute without financial penalties. Low-cost carriers may end up choosing to cancel UK flights over EU flights in order to suffer the least amount of financial loss, Guardian Money notes.

Would you file a claim for air passenger compensation under the proposed scheme if your flight was delayed by less than three hours? Why or why not? Tell us your thoughts in the comments section below.