Harm to regional airlines, no additional benefit for passangers. The European Regions Airline Association claims the revised passenger rights rules, as envisioned by the European Parliament, will not deliver what they promise — and might even lead to cancellation of regional routes.

As EU institutions get ready for a final clash on new passenger rights, the industry rings alarm bells. According to Montserrat Barriga, Director General of the European Regions Airline Association (ERA), if the European Parliament manages to get its way during negotiations on the revision of rules designed to protect the interests of passengers in cases such as flight cancellations or long delays, also known as EU261, it might mean losing many regional routes.

The current revision of EU261 risks harming regional airlines and the communities that depend on them, without actually delivering better outcomes for passengers. — Montserrat Barriga, Director General of the European Regions Airline Association

Regulations like EU261 are very important from the perspective of protecting passengers’ interests. However, in implementing those measures, legislators need to recognise the diversity of aviation services if they want to see passenger rights truly upheld across the whole sector, Ms Barriga says.

Speaking to EU Perspectives, the ERA head pulled no punches. “Regional airlines fully support strong passenger rights. But those rights must be workable in the real world. The Parliament’s position applies strict rules to all airlines and all routes, without recognising that regional aviation operates very differently from large hub-based carriers,” she said.

The regulation standard

EU Regulation 261/2004 (often called EU261) is the cornerstone of EU air passenger rights legislation. It was introduced to provide a standard for airline regulation and passenger compensation, covering flight delays, cancellations or denied boarding.

The revision of this regulation has been under consideration for some time. The European Commission recently completed an impact assessment of the legislation that estimates that currently, EU261 causes an annual cost of approximately €8bn in cancellations and delay compensation. The Commission’s assessment shows that this number would double with the introduction of a revised regulation that would include new provisions. According to Ms Barriga, the financial impact is even higher for regional airlines who work on low margins.

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“There are currently very strict rules applied equally to all airlines and all routes throughout Europe,” she said. “The rules do not acknowledge how regional aviation is very different from other kinds of air transport.”

The revised threshold for flight delay compensation is three hours regardless of route distance. Ms Barriga points out that the operating realities for regional airlines are very different from those of larger carriers.

“Often, regional airlines do everything possible to avoid flight cancellations and to get their passengers to their destination,” she said. “But meeting these requirements within three hours is sometimes very difficult, or even impossible.”

Political angle

Adding to that pressure is the fact that current compensation levels exceed two or three times the price of a ticket in many cases, especially for low-cost short-haul routes. “Increasing compensation further will put our routes at serious risk,” said Ms Barriga. “That’s why we need a more nuanced approach.”

Ms Barriga said that decisions about EU261 have been made more on a political basis than in regard to operational realities. “There’s always a risk when you just look at the issue from a political perspective,”. “Strong passenger rights that look good on paper but ignore operational reality can backfire.”

She went on to warn about the consequences of abandoning nuanced consideration for the complex challenges faced by regional airlines. “There’s no point in having a network of routes if something puts those routes out of service altogether,” she said. “There’s no win for consumers if regulation leaves them unable to fly at all.”

Many routes are unique

If too many routes have to be dropped due to cost pressures from too-stringent regulations, connectivity suffers. “If we lose regional air links, citizens lose access to healthcare, education and jobs,” Ms Barriga stressed. “We need a balanced approach. It’s time for people to move away from slogans and focus on what really matters for passengers and airlines alike.”

ERA members operate more than a thousand unique routes across Europe, including many essential links for isolated communities. “This isn’t about tourism on a seasonal basis,” said Ms Barriga. “We operate important air links all year round. If current regulations remain unchanged, airlines will be forced to give up some of these vital routes.”

This is not something that would benefit anyone except nationalistic politicians who want to increase tensions between European countries. These political moves by right-wing politicians are seriously harming air transport.

Aviation “forecast’

“We urge policymakers to consider the diversity of Europe’s aviation landscape,” Ms Barriga concluded. “Passenger rights and regional connectivity are both public goods. The challenge is to design legislation that respects and protects both.”

While the Parliament, has taken a more expansive consumer-focused stance, pushing for stricter and more uniform passenger compensation rules under the revised EU261, the Council has been more inclined to approach this in a more cautious and pragmatic way. The passenger compensation rules under the revised EU261 are crucial for passengers since they protect them as well as to ensure the economic sustainability of the airlines. As such, the Council has sought a balance of addressing concerns to ensure passenger satisfaction but also considering the operational and financial realities of regional airlines.