What went wrong for BA – and what rights do affected passengers have?
British Airways is still trying to find out exactly why the IT system on which its entire network depends failed. While some parts of the airline’s operation can be handled manually, so much depends on computers communicating with each other and the outside world that flying was brought to a halt and is only slowly resuming.
One reason for the vulnerability is that BA, in common with many big organisations, has a corporate IT system with cutting-edge technology alongside “legacy” elements and processes that are almost prehistoric in computing terms.
Could British Airways have done more to keep passengers informed?
BA has been heavily criticised for failing to provide information to passengers as the operation shut down. The airline usually has an efficient system for disseminating information to disrupted passengers, through SMS messages, but this was one of the many services affected by the failure. It is offering only limited advice to passengers.
What are the rights of passengers whose flights were cancelled because of the failure?
The most basic entitlement, which applies regardless of the cause of the disruption, is the airline’s obligation to provide care for passengers affected by cancellations. They are entitled to meals and accommodation as appropriate until they can reach their final destination. British Airways is supposed to provide this care, but in practice during severe disruption many passengers fend for themselves and then claim back later. BA has said it will pay up to £200 for a hotel room (with couples expected to share), £50 for transport between the airport and the hotel, and £25 per day for meals and refreshments.
The airline is also obliged to find the fastest way to get passengers to their destination, using other airlines if appropriate. There are empty seats on many planes leaving Heathrow and Gatwick: the problem for BA is processing the switch to another carrier.
Again, it is likely that some passengers will make their own arrangements, and seek to claim back the costs from BA.
What about actual compensation?
Under EU passengers’ rights rules, passengers whose flights are cancelled are entitled to cash compensation depending on the length of the trip: under 1,500km, €250 (£218); 1,500-3,500km, €400; above 3,500km, €600. The only defence an airline can bring is that the cause was “extraordinary circumstances which could not be avoided”. While this weekend’s events are certainly extraordinary, the legal requirement is for British Airways to show that it took every reasonable care to avoid the issue, and that it is not inherent in the running of an airline. Lawyers and claims firms will be eager to pin blame on BA, because the potential compensation bill runs into tens of millions of pounds.
If BA pays out, affected passengers will be able to claim direct from the airline; they do not need an intermediary, who will take about 30 per cent of the value of a settlement.
Because of the sheer number of passengers affected, payments are likely to take months rather than weeks.
What if the financial costs to the passenger exceed the stipulated EU amount?
Receiving the European compensation payments does not rule out more substantial claims. For example, due to the shutdown some families will have had to abandon planned Mediterranean holidays, losing the pre-paid cost of accommodation running into thousands of pounds. They may claim from the airline under the Montreal Convention, which gives passengers certain rights to recover financial losses directly caused by an airline’s failure to get them to their destination on time.
How bad is this for BA and its passengers?
While strikes, weather and previous IT failures have had some effects, nothing as extreme as this has happened since the Icelandic volcano shut down all flying in northern Europe in 2010. The difference then was that all airlines were affected. This weekend only British Airways has shut down. (Oddly, that actually makes operations for other airlines at Heathrow and Gatwick run more smoothly, as there is less
congestion.) The timing, at the start of half-term for many schools, was especially unfortunate, with some families having invested thousands of pounds in holidays which they have now missed.
However, BA has the majority of slots at Heathrow, the world’s most desirable international airport. It therefore has a huge structural advantage over other airlines, and is likely to continue to prosper despite this failure.