June 20 2012
On May 15 2012 Advocate General Yves Bot of the European Court of Justice (ECJ) delivered his opinion on the joined cases of Nelson v Deutsche Lufthansa AG (C-581/10) and TUI Travel plc v Civil Aviation Authority (C-629/10). Unfortunately for carriers, the advocate general confirmed the much-debated ECJ decision in the joined cases of Sturgeon v Condor Flugdienst-GmbH (C-402/07) and Böck v Air France SA (C-432/07). In Sturgeon the ECJ ruled that passengers whose flights are delayed, and who reach their final destination three hours or more after the arrival time originally scheduled by the air carrier, may rely on the right to compensation pursuant to EU Regulation 261/2004 establishing common rules on compensation and assistance to passengers in the event of denied boarding and of cancellation or long delay of flights and repealing EU Regulation 295/91.
Regulation 261/2004 provides that in the event of flight cancellation, passengers have a right to compensation at a fixed level. In Sturgeon the ECJ ruled that if passengers reach their final destination three hours or more after the arrival time originally scheduled by the air carrier, they have the same right to compensation under Regulation 261/2004 as passengers whose flight has been cancelled.
In the two cases before the ECJ, the Cologne Local Court and the High Court of Justice of England and Wales asked the ECJ whether it would confirm the interpretation of Regulation 261/2004 which it adopted in Sturgeon.
The advocate general's opinion can be summarised as follows:
The advocate general did not take the opportunity to present an opinion that aimed at rectifying the flawed decision in Sturgeon. In addition, he did not satisfy the industry's desire for a substantiated legal opinion covering the crucial points. In particular, his comments on the first question posed by the Cologne Local Court regarding the relationship between Article 29 of the Montreal Convention and Article 7 of Regulation 261/2004 are unsatisfactory, as he dealt with this question only superficially.
Even though the advocate general's opinion is not binding on the ECJ, it is legal practice that it is usually followed in the final judgment. The ECJ's final judgment in the cases at hand is expected to be handed down later in 2012.
If the ECJ were to follow the advocate general's opinion, carriers would have to compensate passengers for delay pursuant to Regulation 261/2004 dating back to the date when the regulation came into force (ie, February 17 2005). Whether the two-year limitation period provided for in the Montreal Convention 1999 should apply to claims brought by passengers pursuant to Regulation 261/2004 is still under debate on a European level. Otherwise, the only defence which air carriers can rely on is the extraordinary circumstances exemption contained in Article 5(3) of Regulation 261/2004. However, in the event of a technical default, it is generally difficult for carriers to rely on this defence as a result of the ECJ's decision in Wallentin-Hermann v Alitalia – Linee Aeree Italiane SpA (C-549/07).
For further information on this topic please contact Ulrich Steppler or Katharina Sarah Meigel at Arnecke Siebold Rechtsanwälte by telephone (+49 69 97 98 85 0), fax (+49 69 97 98 85 85) or email (email@example.com or firstname.lastname@example.org).
ILO provides online commentaries as specialist Legal Newsletters. Written in collaboration with over 500 of the world's leading experts and covering more than 100 jurisdictions, it delivers individually requested information via email to an influential global audience of law firm partners and international corporate counsel. Please click here to register for the service.
The materials contained on this website are for general information purposes only and are subject to the disclaimer.
ILO is a premium online legal update service for major companies and law firms worldwide. In-house corporate counsel and other users of legal services, as well as law firm partners, qualify for a free subscription. Register at www.iloinfo.com.