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IATA chief: EU is doing "very little" to improve airline competitiveness

Willie Walsh (Director General of the International Air Transport Association, IATA) said that on Tuesday the European Union had taken "very few actions" to improve airline competitiveness. He also criticised the compensation policy for passengers.

In recent years, European airlines have faced many challenges, from strikes in France, particularly in the air traffic control sector, to engine issues, and delays with new fuel-efficient Boeing aircraft.

The EU institutions are currently in negotiations to reform the 20-year-old passenger rights regulation of the EU, known as EU261. Walsh claimed that it was outdated.

Walsh stated that the compensation scheme for delayed flights punishes 99 percent of passengers, as less than one percent of flights exceed the three-hour mark.

In June, the European Parliament and the member states agreed to extend the threshold for flight delays from three hours to four for short-haul flights. The current threshold is three hours.

In a Tuesday morning statement, IATA stated that this would "reduce the perverse incentives for airlines to cancel late flights and be consistent with the passengers' preference to come late rather than never arrive." IATA called for thresholds of 5 hours and 9 hours, respectively.

However, the European Parliament wants to remove the thresholds, and allow passengers to bring in a free cabin baggage, among other things. On Wednesday, the parliament and commission will meet to continue discussions.

(source: Reuters)