European Commission publishes clarification on compensation in the Corona crisis

The European Commission has published a clarification on the subject of EU compensation with regard to the current travel situation due to the corona virus. Until now it was unclear whether only flight cancellations, which have to be made directly due to travel restrictions, are excluded from the compensation, or flight cancellations due to the resulting economic necessity (extremely low occupancy rates worldwide) are not compensated.

Here is an overview of the most important points:

• The EU regulation 261/2004 applies to all flights from EU airlines, as well as flights from non-EU airlines that start in an EU country.
• You will normally receive compensation in the amount of EUR 125 to 600 depending on the flight route, lead time and type of cancellation / rebooking / delay.
• In the event of exceptional circumstances that are not the fault of the airline or airport (such as weather), this rule does not apply.

The European Commission has now clarified the following

• Exceptional circumstances do not only affect flights that cannot take place due to government measures.
• In the current crisis situation, this also includes flights that could no longer be carried out economically due to the lack of demand (i.e. almost all).

• The so-called “terms of care” continue to apply. Among other things, this means that the airline must enable you to do the following:
  • Alternative flight at the earliest possible time, if necessary also with other airlines
  • Hotel accommodation for the necessary duration
  • Food voucher for the necessary duration
  • International calls in the required amount
• You must of course continue to receive a full refund if your flight has been canceled and you therefore decide not to travel anymore.

It should therefore be noted that all regulations still apply, but in the current situation in the event of cancellation / rebooking / postponement, the airlines can almost invoke exceptional circumstances and therefore do not have to pay any compensation. However, reimbursement or replacement transport and hotel accommodation are still to be provided. Overall, it is a relatively fair regulation for both sides that was foreseeable.

Here is a quote from the section most important to most passengers:

“The Commission considers that where public authorities take measures intended to contain the Covid-19 pandemic, such measures are by their nature and origin not inherent in the normal exercise of the activity of carriers and are outside their actual control.
Article 5 (3) waives the right to compensation on condition that the cancellation in question “is caused” by extraordinary circumstances, which could not have been avoided even if all reasonable measures had been taken.
This condition should be considered fulfilled, where public authorities either outright prohibit certain flights or ban the movement of persons in a manner that excludes, de facto, the flight in question to be operated.
This condition may also be fulfilled, where the flight cancellation occurs in circumstances where the corresponding movement of persons is not entirely prohibited, but limited to persons benefitting from derogations (for example nationals or residents of the state concerned).
Where no such person would take a given flight, the latter would remain empty if not canceled. In such situations, it may be legitimate for a carrier not to wait until very late, but to cancel the flight in good time (and even without being certain about the rights of the various passengers to travel at all), in order for appropriate organizational measures to be taken, including in terms of care for passengers owed by the carrier. In cases of the kind, and depending on the circumstances, a cancellation may still be viewed as “caused” by the measure taken by the public authorities. Again, depending on the circumstances, this may also be the case in respect of flights in the direction opposite to the flights directly concerned by the ban on the movement of persons.
Where the airline decides to cancel a flight and shows that this decision was justified on grounds of protecting the health of the crew, such cancellation should also be considered as “caused” by extraordinary circumstances. ”

Click here for the full announcement from the European Commission

An overview of the cancellation and rebooking regulations of the airlines can be found here