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Friday 31 October 2014

Why the Supreme Court decision on airlines compensating for delayed flights is bad news for short-haul low-cost airlines

The Supreme Court has considered two test cases brought by passengers who were badly delayed. The Appeal has taken years to get as far as the Supreme Court. The Court has said the airlines must payout on claims back dated by six years. This will cost billions of pounds and the future liability is enormous. What it will mean is that easyJet, Ryanair, flyby, WizzAir and so forth will need to have back-up aircraft available at something like one hour's notice in order to escape claims. And everyone will have to pay for that. It will likely add €15 to every single ticket price, and damage the low-cost business model.

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