The EU Regulation 261 sets out passengers’ rights in the event of delays, cancellations or denied boarding. Since 2004, passengers have been entitled to compensation ranging from €250 to €600 when a flight is delayed by more than three hours, barring extraordinary circumstances. However, the reform currently under discussion in Brussels could alter several key aspects of the system. Member States are particularly advocating raising the threshold for entitlement to compensation, from three to four hours for many European flights and up to six hours for certain long-haul flights. The European Parliament, for its part, wishes to maintain the current three-hour threshold.
The debate also centres on the levels of compensation and new rights for passengers. In particular, Parliament is pushing for an automatic compensation claim form, faster refunds, free carry-on luggage up to 7 kilos, and free seats for parents travelling with a child.
Changes designed for low-cost carriers and large groups
In their letter, the heads of regional airlines explain that the proposals currently under discussion have been designed primarily with major airline groups and low-cost carriers in mind, without taking into account the specific constraints faced by smaller carriers. Many operate on slim margins, with limited fleets and few spare aircraft, often serving islands, outlying regions or secondary cities.
“We want to be clear: we support strong and fair passenger rights,” write the signatories, including 
The signatories include Gilles Feith, CEO of Luxair, as well as the heads of airlines such as Loganair, Widerøe, Air Corsica, Croatia Airlines, Air Serbia and KM Malta Airlines.
A system that encourages cancellation
The airlines argue that the combination of rising fuel prices, geopolitical tensions and new compensation requirements could make certain routes economically unsustainable. They cite the risk of route cancellations, aircraft being grounded and the disappearance of certain regional airlines. Regional airlines are also calling for an increase in the compensation thresholds, or even a tighter cap on the current scheme. They believe that the system sometimes forces carriers to cancel flights rather than accept a longer delay with automatic compensation for passengers.
“Passenger rights must protect and connect citizens, not isolate them,” the leaders add. “Europe’s strength lies in its connectivity, not only between major capitals, but also between every region and every community.”
The companies are now calling on the European institutions to suspend the current process so that a new impact assessment can be carried out, taking into account the current economic and geopolitical situation, before the reform is finally adopted.
