Travel agents call for scheme protecting air passengers across EU

The European Travel Agents and Tour Operations Associations (ECTAA) called on the European Union to put in place a scheme that protects passengers when an airline suspends operations, in particular in the case of financial failure.

The ECTAA, of which the Maltese FATTA association forms part of, was referring a decision by the Board of Cyprus Airways to suspend operations following the order of the European Commission (DG Competition) to recover incompatible state aid from the national air carrier.

ECTAA welcomed the adoption of emergency measures by the Cypriot government and main stakeholder of the national flag carrier to provide passengers with alternative tickets and routings.


“This is a positive change compared to the passengers of the airlines Spanair and Malev, which ceased operations at the beginning of 2012, where passengers were not provided with the same assistance and where some are still waiting to be refunded today,” ECTAA said. “This unfortunate case once again stresses the fact that there is no protection for passengers within the EU when an airline suspends operations in particular in the case of financial failure.”

While a similar protection is already in place for citizens travelling under a package travel contract with a tour operator, ECTAA and its 32 Members Associations deplored the reluctance of the EU legislator to adopt an appropriate legislation to protect EU air passengers.

In the last decade there have been more than 96 European airlines which have filed for bankruptcy, each time leaving thousands of passengers stranded and even more airline customers with no hope of getting a refund for their prepaid tickets.

ECTAA urged the European legislator to translate the European Parliament resolution of 25 November 2009 on passenger compensation in the event of airline bankruptcy into a mandatory legislation.

The European Parliament has proposed a specific amendment to the legislative proposal revising the air passenger rights, entitling passengers to re-routing or refund in case an airline goes bankrupt, is suspended or ceases operations.

Unfortunately this amendment was not supported by the Commission nor the Member States.

“After the financial failures of SPANAIR, MALEV and many other airlines, with tickets worth millions of Euros non-refunded, the unfortunate situation of Cyprus Airways highlights once again the absolute need for a European scheme to protect air travellers,” Lars Thykier, President of ECTAA, said.