Transport

Airlines oppose higher payouts for air travel hitches

airport

Passengers at Moi International Airport in Mombasa after their flights were diverted from Jomo Kenyatta International Airport in Nairobi following a hitch on the runway. PHOTO | LABAN WALLOGA | NMG

Airlines are headed for a major showdown with consumer groups as the aviation regulator pushes for the passage of new passenger protection rules that could significantly cut their profit margins.
The draft Civil Aviation (Consumer Protection) Regulations 2017 published a fortnight ago by the Kenya Civil Aviation Authority (KCAA) require airlines to pay passengers up to Sh30,000 each— in addition to ticket price refund — for delays and flight cancellations.

READ: KCAA proposes high compensation bill for cancelled flights

While major airlines have downplayed the likely impact of the new regulations publicly, the Business Daily understands that behind-the -scenes lobbying has begun in earnest as players fight to lower their liability.

Industry executives have warned the KCAA against deviating from established norms in its consumer protection bid.

“Delays and cancellations are often unavoidable and unforeseen as they are mainly due to technical hitch or weather.”

Kenya Airways (KQ) #ticker:KQ chief operating officer Jan de Vegt said adding the safety of passengers and crew will always come first. “We are still studying the proposals but as long as they are in line with our own standards, then there is no issue at all.”

The KCAA’s draft rules also seek compensation at a flat rate of 1,000 special drawing rights ($725.476 or Sh74,723 by latest International Monetary Fund rates), for every lost or damaged baggage irrespective of its content.

Passengers involuntarily denied boarding due to overbooking will get an equivalent of 20 per cent and 30 per cent on domestic and international travel ticket price respectively as compensation in addition to full ticket price refund or alternative booking plus care expenses.

Under the KQ’s policy, a passenger affected by flight cancellation, delay, failure to stop at a destination or caused to miss a connecting plane currently have the validity of their tickets extended in order to fly in the next scheduled flight.

For passengers denied boarding due to overbooking, the national carrier says it has a compensation policy, which is available upon request. It also pays for damaged or lost baggage “to the extent of airline liability and not based on the weight of the luggage nor its value.” The passenger must, however, ask for compensation in writing within seven days of travel.

The KQ does not accept liability for fragile, valuable, perishable items packed in damaged or unsuitable containers.

“All the same, we hope the new rules we’ll be applied to all carriers in the region as it is the case in Europe, for example,” said Mr Jan.

Ethiopian Airlines, another major player in Kenya’s airspace also faces a policy upset. Its passengers denied boarding due to overbooking currently have to wait to be re-routed to their final destination “at the earliest opportunity if not accommodated in the airline’s next flight.”

The airline only refunds the ticket price for the part of the journey not made on Ethiopian while its care is limited to a phone call, snacks or meal and accommodation expenses incurred depending on the duration of the delay.

Its passengers denied boarding due to overbooking are eligible to compensation of up to Sh69,000 (€6,000) while delays of at least two hours attract only snacks, lunch or dinner time depending on time.

South African Airlines (SAA) only compensates passengers denied boarding due to overbooking in countries which have a legal framework like the one the KCAA is working on. Where it refunds ticket price, it is less government taxes.

For baggage delays, SAA pays Economy Class passengers up to Sh7,500 ($75) per day and up to Sh10,000 per day to Business Class passengers for expenses incurred while waiting for baggage.

It says of damaged baggage: “We will compensate you for reasonable, documented and verifiable damages up to the limit of liability.”

Its compensation policy does not cover fragile or perishable items, money, jewellery, precious metals, computers, personal electronic devices, negotiable papers or securities.