Discussion of issues not covered
by EU legislation
Andrew Kelly
European Regions Airline Association
The Regional view...
The airline associations
have been given less than
two weeks’ notice of the
topic to be presented.
Consequently it has not
been possible to prepare
coordinated presentations
agreed by all associations.
This presentation
represents the views of the
European Regions Airline
Association
About ERA
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67 airline members
1.8 million flights per year
73 million passengers per year
72 minute average sector time
73 seat average seating capacity
1,100 aircraft
1,300 routes
30 countries across Europe
Are airlines consumer friendly?
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We need to be consumer
friendly to keep our
customers
But consumer friendliness
takes many forms
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Price
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Product
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Route network
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Loyalty schemes
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Safety
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???
A deregulated market....
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Within Europe the market is fully deregulated.
This means
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the consumer has a choice of product and price
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the product (and contractual rights) will vary
when things go well and when things go wrong
This is what happens in a free market...
What needs to be regulated?
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Don’t constrain a free
market without a clear
justification that
regulation actually
benefits the consumer
Looking at two
examples where the
Commission raises the
possibility of regulation
in its consultation
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Seat pitch
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Cabin baggage
policy
Seat pitch
Regulate or leave the market to decide?
 Already regulated for safety
 Constrains the ability of companies to compete through
product
 Increases the per seat costs raising the price of air travel
 For smaller aircraft operators potentially could result in
10% reductions (or greater) in seating capacity and
associated operating/safety problems
 Does the consumer really benefit overall?
Cabin baggage policies
Regulate or leave the market to decide?
 Already regulated for safety
 Constrains the ability of companies to compete through
product
 Limits the choice for the consumer
 How do you create a rule that takes account of different
aircraft types – for example, some regional aircraft have
no cabin baggage storage space!
 Impacts hold baggage policies, airport baggage capacity
and security screening
 Does the consumer really benefit overall?
“Buyer beware” or “Regulate”
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Ensure that the passenger knows what they are
buying (for example: seat pitch, baggage allowance,
check in rules, additional unavoidable costs, no show
policy, on line reservation policies)
Ensure the passenger knows what rights they will
receive when things go wrong (for example:
mishandled baggage, delays, cancellations, denied
boarding, force majeure)
The compromise is better transparency - “BUYER
AWARE”
Equality across modes
A key issue for regional airlines
competing with high speed rail
 If travelling by air, EU
Regulation 261/2004
provides for unlimited liability
for care (meals, hotel
accommodation) during
“force majeure” events
 If travelling by rail, the carrier
is relieved of any liability for
care by EU Regulation
1371/2007 during “force
majeure” events
Safety is the 1st right
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It is easy to forget that air
travel is a safety critical
business
A safe journey must remain
the fundamental right of
every air passenger and
crew member
No regulation on passenger
rights must ever jeopardise
safety
Regulations affect real people
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All consumer rights legislation affects consumers and
employees
Interference in the market will potentially result in the
loss of routes, mobility and jobs
The EC must respect its own rules on better regulation
ensuring that the full impact of any proposal is properly
assessed before it is proposed
Conclusion
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Do we need more regulation?
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Airlines need to be consumer friendly to attract
business
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Consumer friendliness takes different forms
including product and price
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Do we want to limit the choice for consumers?
Leave the market to set the product and price but
ensure that the consumer is protected by enabling
them to be aware of what they are buying
Do not over-regulate as regulation, by definition,
limits personal choice