ECJ: Compensation for Flight Delays

Oct 21, 2022 Benn-Ibler Rechtsanwälte

The European Court of Justice (ECJ) has ruled that national bodies responsible for enforcing Air Passenger Rights Regulation (EC) 261/2004 may be authorised by a Member State to require airlines to compensate passengers for delayed flights. However, it should be noted that such decisions by national bodies must pass judicial review.

In the case at hand which was brought from Hungary, passengers had requested the competent Hungarian authorities to enforce the Passenger Rights Regulation after a delay of more than three hours on a flight from New York (USA) to Budapest (Hungary). The competent Hungarian authority found that the airline had breached its obligations, and ordered the airline to reimburse EUR 600 to each of the passengers and to pay the same amount of compensation to passengers who may file a similar claim in the future. The Hungarian authority asserted under Article 16(1) and (2) of the Air Passenger Rights Regulation that it was authorised to oblige air carriers to remedy breaches of this regulation within a certain period of time.

In response, the airline filed a lawsuit, claiming that the Hungarian authority was not authorised to order compensatory payments and that courts should have sole jurisdiction in this matter. With regard to this question, the competent Hungarian court turned to the ECJ for a preliminary ruling, asking: May a national body entrusted with the enforcement of the Air Passenger Rights Regulation require an airline to make such compensatory payments?

According to the ECJ, this is indeed possible. Member States may authorise national authorities entrusted with the implementation of the Air Passenger Rights Regulation requiring airlines to offer compensation and assistance to passengers in the event of infringements of said regulation.

The purpose of granting blanket compensation payments is precisely to remedy in a standardised and timely manner any damages caused by the loss of time resulting from such delays, without passengers having to bear the inconvenience associated with filing for legal redress.

ECJ, C-597/20 (29 September 2022)