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.
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.
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)
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
No comments :
Post a Comment