ECJ Rules On The Passenger's Right To Compensation From Non-EU Air Carriers

• Published date: 02 June 2022
• Subject Matter: Transport, Aviation
• Law Firm: Ganado Advocates
• Author: Mr Nigel Micallef

The European Court of Justice (the 'ECJ'), on 7 April 2022, delivered a preliminary ruling with regards to Regulation (EC) No 261/2004 which establishes common rules on compensation and assistance to passengers in the event of denied boarding and of cancellation or long delay of flights (the 'Air Passenger Rights Regulation') and as a result, has extended the scope for passengers to seek compensation. In particular, for delays pertaining to connecting flights consisting of two legs which are serviced by non-EU air carriers.

The case C-561/20 developed from a preliminary ruling request from the Brussels Companies Court, Belgium (the 'Belgian Court'), which was made in the proceedings instituted in Belgium by Happy Flights BVBA, now holder of the claim for the three passengers, against United Airlines.

The proceedings before the Belgian Court and the questions posed to the ECJ

Three passengers made a single reservation via a travel agency, with the Community carrier Deutsche Lufthansa AG, for a connecting flight from Brussels, Belgium to San José, United States, with a stopover in Newark, United States. The entire connecting flight was operated by United Airlines, an air carrier established in a third country. The three passengers ended up arriving at their final destination in the United States with a delay of 223 minutes.

The three passengers lodged a complaint to the company Happy Flights BVBA, which in turn gave United Airlines formal notice that the air carrier was liable to pay compensation in the amount of EUR 600 per person for that delay, namely a total amount of EUR 1 800, pursuant to the Air Passenger Rights Regulation. United Airlines however argued that it was not liable to pay compensation to the passengers and this since the Air Passenger Rights Regulation was not applicable on the grounds that that delay had occurred during the second leg of the flight concerned.

Happy Flights BVBA summoned United Airlines to appear before the Belgian Court, seeking an order requiring it to pay the compensation together with default interest. In the context of the non-EU air-carrier, the Belgian Court had doubts concerning both the applicability of the Air Passenger Rights Regulation and its validity.

Given the circumstances, the Belgian Court decided to stay the proceedings and to refer the following questions to the ECJ for a preliminary ruling on the following matters:

1. Should the right to compensation as provided for in Article 7 of the Air Passenger...