Liability Risk and Insurance
Passenger compensation proposals
At lower levels than proposed by the European Commission, the European Parliament has passed a bill requiring airlines to
pay higher compensation for passengers stranded by cancellations or over-booking of flights. Cancellation on short haul is
raised from €150 to €200, and long haul from €300 to €600. Free food must be provided to those delayed for one or two hours
respectively. Exceptions are available where the cancellation is caused by events outside carriers’ control, including poor
weather, long-running strikes and security. Carriers will, however, be expected to compensate for problems caused by their
“agents”, ie airport, baggage handlers and equipment etc. These rates will be adjusted every three years.