UK compensation rules: less money, more eligible

The UK Department for Transport is proposing a new set of compensation rules for air passengers whose flights are delayed or canceled, replacing the current EU 261 rules inherited from the European Union. A major change is that the new system would be based on ticket cost rather than a flat rate.

Under EU 261, passengers on flights under 1500 km, which includes all UK domestic flights are eligible for £220 compensation, about $300, for delays of more than two hours and £330 for delays over three hours, no matter the cost of the ticket.

The new plan would extend coverage to delays of one hour or more, but limit the amount to a percentage of the ticket price, with no allowance for additional expenses caused by the delay, such as food, hotel, taxi or other expense.

Since nearly all UK domestic flights sell for well less than the EU261 compensation levels, most often below £100, and frequently below £50, the payouts by airlines would be much lower. A one-hour delay would trigger a 25% refund, two hours 50% and three hours or longer, 100%. The result would be that more passengers would receive refunds, but they would be much smaller.

The new limits would not apply to flights from Europe to the UK, because under European law, all airlines operating flights from or within the EU must operate under EU rules.

Other proposed provisions are more passenger-friendly, including one that requires airlines to be part of an Alternative Dispute Resolution plan that would provide a way for customers to appeal airline claim disputes without having to sue in court, and another that would make airlines wholly responsible for damage to wheelchairs and other mobility equipment in their care.