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ELFAA challenge to unreasonable Passenger Compensation Legislation reaches European Court of Justice
Thursday, June 09, 2005
The European Low Fares Airline Association (ELFAA) today gave evidence to the European Court of Justice (ECJ) which challenges EU Regulation on Air Passenger Compensation for denied boardings, long delays and cancellations. The Regulation was already under reference to the ECJ when it came into force on 17 February this year. ELFAA was represented by the Brussels office of Covington and Burling.

Commenting today, Stefan Vilner - President of ELFAA and Commercial Director of Sterling said: Although ELFAA fully supports legislation which actually benefits the consumer and also firmly believes that airlines should compensate passengers when they are at fault, this Regulation forces airlines to pay in cases that are not their fault. As a result, this Regulation will do very little if anything to reduce the number of long delays and flight cancellations effecting passengers since the vast majority of causes are outside of the control of airlines. Making airlines bear the costs of these delays will therefore not reduce the numbers of delays and cancellations but will also ultimately be denied the choice of having low fares as the cost of air transport will rise and certain routes prone to delays may be cancelled.

In addition, Europe has a fair and balanced procedure for deciding legislation which not only takes the views of Governments into account but also the views of the people of Europe through the European Parliament whose members have been elected by the people themselves. In the case of this Regulation, however, there appears to have been a serious infringement of this balanced and democratic procedure which we take very seriously.

We have made our case today and look forward to the Court`s decision.
Vicky Karantzavelou - Thursday, June 09, 2005
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Poll
How do you expect luxury travel to perform in times of economic downturn?.

Providers of luxury travel products are going to witness shorter stays by their customers and an increase in seasonality.

People are going to become more value conscious and will opt for those luxury offers that represent a convincing value-for-money proposition. Providers of overpriced services are those to feel the pinch.

Both people paying for their personal trips and firms paying for their top executives' business trips will cut back on travel expenses, thus affecting all luxury travel providers.

It is going to be business as usual. Those people opting for high-end travel products are not going to be affected by the looming crisis.

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