The report argues that
proposed revisions to the EU’s passenger compensation framework may place
significant pressure on regional airlines, particularly those operating thin
routes that serve island, peripheral and remote communities. According to the
findings, the proposed changes could increase the aviation sector’s annual
regulatory burden from €8.1 billion to more than €15 billion.
ERA warns that the reforms may
result in higher operating costs, fare increases and potential route
withdrawals, affecting communities that rely on regional air services for
access to healthcare, education, employment and tourism-related economic
activity.
The passenger protection paradox
While the proposed reforms aim
to strengthen passenger rights, the report highlights concerns about
maintaining a strict three-hour delay compensation threshold and introducing
mandatory pre-filled compensation claim forms.
Unlike compensation systems in
other transport sectors, EU261 relies on fixed compensation amounts that are
not linked to ticket prices. On many regional routes, compensation of €250 per
passenger can exceed the value of the ticket itself.
According to Oxera, this
creates a disproportionate financial burden for airlines operating lower-yield
regional services. As a result, carriers may face difficult decisions regarding
route viability, particularly on routes with limited passenger volumes.
The report notes that routes
with fewer than 20,000 annual seats represent 44% of Europe’s air network but
account for 91% of all cancelled routes, highlighting the vulnerability of
regional connectivity.
Impact on island and remote communities
The study points to countries
such as Greece and Sweden as examples of markets where regional aviation plays
a critical role in national connectivity.
In Greece, with more than 100
inhabited islands and extensive mountainous regions, regional air connectivity
supported an estimated €8.5 billion in Gross Value Added (GVA) and
approximately 189,200 jobs during the previous year.
In Sweden, where long
distances and severe winter conditions often limit alternative transport
options, regional aviation contributed an estimated €2.7 billion in GVA and
supported around 51,600 jobs.
For many communities, regional
flights provide essential access to specialised healthcare services, higher
education institutions, employment opportunities and tourism markets that
support local economies.
ERA calls for a differentiated approach
ERA is urging European
policymakers to consider the specific circumstances of regional and peripheral
areas during the final stages of negotiations.
The association argues that a
uniform regulatory framework may not adequately reflect the operational
realities of regional aviation markets where alternative transport
infrastructure is limited or unavailable.
Montserrat Barriga, Director General of ERA, said:
“Passenger protection cannot
come at the expense of regional connectivity survival. If the current reforms
being discussed by negotiators pass, Brussels will create a tragic paradox: a
framework that ‘protects’ passengers by ensuring their routes are permanently
suspended. We need a balanced, differentiated approach that protects consumer
rights without jeopardising feeder connectivity and cutting the literal
lifelines of Europe’s peripheral, island and remote populations.”
Key negotiations ahead
The debate comes as European
negotiators continue discussions on the future of the EU261 framework. A key
conciliation committee meeting is scheduled ahead of the legislative deadline
on 15 June.
The outcome could have
significant implications for regional airlines, airport connectivity,
tourism-dependent destinations and communities that depend on air services
across Europe’s island, peripheral and remote regions.
Tags: Montserrat Barriga European Regions Airline Association ERA
