Airline Failure Protection Urged in Review of Passenger Rights Regulation

The European Travel Agents’ and Tour Operators’ Association (ECTAA) has welcomed renewed discussions on revising air passenger rights regulations, with a focus on implementing airline failure protection measures.

During the Transport Council meeting on December 5, ministers from several Member States, including the Netherlands, Portugal, Spain, and Slovenia, called for a legislative review of Regulation 261/2004 on air passenger rights. This regulation, which outlines compensation and assistance for disrupted flights, has remained unchanged since 2013 due to a deadlock in the Council.

The need for airline failure protection

Airline insolvencies are a significant and ongoing issue. Between 2011 and 2019, 87 airlines went bankrupt, leaving 5.6 million passengers affected, according to European Commission data. The International Air Transport Association (IATA) reported that 160 airlines ceased operations worldwide between 2019 and 2022, with Europe accounting for half of these closures in 2022 alone.

As highlighted by ECTAA, passengers bear the brunt of these failures. Those already traveling may be stranded without a return flight, while customers with prepaid tickets often lose their money as refunds are deprioritized in favor of creditors like tax authorities and employees.

Urgency for mandatory protection

ECTAA has long advocated for a mandatory airline failure protection mechanism to safeguard passengers and minimize financial and logistical damages. The association argues that relying on consumer-purchased travel insurance or national authorities for repatriation unfairly shifts the burden onto taxpayers and travelers.

ECTAA President Frank Oostdam emphasized the importance of such measures, citing Denmark’s guarantee fund for air tickets as a successful model that ensures consumer protection while maintaining industry stability.

A call to action

As discussions on revising Regulation 261/2004 gain momentum, ECTAA is urging European policymakers to prioritize airline failure protection.

“The introduction of mandatory protection against airline failures is long overdue,” Oostdam said, adding that travel agents and tour operators have consistently supported the initiative.

The association’s president has called for action to safeguard consumers.

ECTAA represents the interests of 80,000 travel agents and tour operators across Europe and continues to advocate for stronger safeguards in the aviation sector.