European Union Prevails over Airlines in Passenger Compensation Dispute

According to Scotsman.com, a group of European airlines has lost its legal bid to reverse a European Union law requiring airlines to compensate passengers for delayed or canceled flights.

The regulation as it stands requires that:

• Passengers whose flights are delayed from two to four hours must be given snacks or full meals.
• Delays of five or more hours entitle passengers to a hotel or a refund as is applicable.
• Any delay that results in a passenger missing the reason for his or her flight, such as a business meeting or a wedding will prompt a full refund of the return ticket.

This comes at a time when fuel prices are soaring and competition among airlines is stiff. Many European discount carriers fear that the law will severely hinder their ability to do business, as the compensations wind up costing more than they made on the original tickets themselves, and often penalize them for circumstances beyond their control.

The EU really ought to let competition accomplish the same goal. If they simply left it up to the airlines to fight for passengers with lower ticket prices or better customer service - they might accomplish more good in the long run. After all, we Americans know firsthand the consequences for customer service and ticket prices when airlines feel financially squeezed.