Airlines in Europe will have to pay increased compensation to
passengers who are stranded by cancellations or overbooking
on flights if new legislation is approved.

At present, passengers who are forced to take a later flight
because of overbooking – a common practice among carriers –
or find their flight has been cancelled get between EUR150
and EUR300.

The new levels of compensation are lower than figures first
proposed by the European Commission that were proposed at
between EUR750 and EUR1500 depending on length of flight.
Travelers on short haul services that are “bumped”
from a flight or are affected by a cancellation, can now
claim EUR200 (USD$195).

Those on longer flights can be compensated by up to EUR600
(USD$586). Some low cost carriers have warned that the
proposals, passed by the European Parliament on Thursday,
could mean a rise in fares unless carriers are willing to
accept lower profit. The low cost airlines are unhappy about
this and believe that the level of compensation should be
adjusted to the price of the passenger ticket, rather than a
flat rate covering every airline.

Not covered by this new compensation are events outside the
direct control of carriers, including poor weather, long
running strikes and security matters.