Passengers in line for compensation when airline crews strike

AIRLINES will have to pay compensation to passengers for delays or cancellations caused by some strikes, according to a new ruling from the European Courts of Justice.

It could result in huge bills for airlines that become embroiled in industrial unrest with crews.

German airline TUIfly had denied compensation to passengers inconvenienced during a wildcat strike by its flight crews in 2016.

They had called in sick en masse at the beginning of October that year after the company announced a surprise restructuring. The rate of absenteeism at the airline suddenly skyrocketed from about 10pc to 89pc for pilots and 62pc for cabin crew.

More than 100 TUIfly flights were cancelled or delayed for three hours or more.

The upheaval came during what was a school holiday period for some German states. TUI said it had incurred €22m in costs as a result of the disruption.

Under normal rules, passengers would have been entitled to compensation for those cancellations or delays under EU regulation 261.

That rule stipulates airlines must compensate passengers whose flights are either cancelled, or whose flights arrive at their destination more than three hours late.

In respect of flights of up to 1,500km, airlines must pay €250 compensation to each inconvenienced passenger. Between 1,500km and 3,500km the amount rises to €400, and for flights more than 3,500km the compensation hits €600.

But if an airline can demonstrate that there were extraordinary circumstances, such as adverse weather, air traffic control strikes, airport security issues or other similar events, then compensation does not have to be paid.

TUIfly argued that the wildcat strike by its staff in 2016 constituted extraordinary circumstances. About 1,000 affected passengers had sought compensation from it under the EU 261 rule.

Last week, one of the court’s own advocate generals had issued an opinion in the case that the wildcat strike experienced by TUIfly had constituted extraordinary circumstances.

Now the European Court of Justice judges have themselves ruled that the strike stemmed from TUIfly’s decision to restructure and so was not an extraordinary circumstance, even though the workers spontaneously decided to call in sick and did so on their own initiative rather than at the encouragement of a union. The court said the strike action could not be regarded as being beyond TUIfLy’s actual control. It added that it was the result of restructuring which was part of the airline’s normal business management measures. A spokesman for TUIfly told the Irish Independent the company was “surprised and disappointed” by the ruling.

He insisted there was no way any airline could protect itself from a wildcat strike or its consequences.

Some of the court cases related to the compensation claims are due to be heard this week in Germany.

Aer Lingus owner IAG, headed by Willie Walsh (inset), declined to comment on the ruling.

Scandinavian airline Norwegian said it “always maintains a consistent policy regarding delays and cancellations in accordance with EU261”.

TUIfly insisted that there was no way any airline could protect itself from a wildcat strike or its consequences