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Judgment C-264/20: Airhelp Limited v Austrian Airlines AG

The focus of Judgment C-264/20 between Airhelp Limited and Austrian Airlines AG is not only the question of whether a collision on the runway should be considered an “extraordinary circumstance” within the meaning of Regulation (EC) No 261/2004 on air passenger rights. Another important aspect is also how airlines handle the rebooking of passengers on alternative flights to fulfil their obligation to provide compensation and assistance. The preliminary ruling by the Regional Court of Korneuburg raises this issue in the context of a cancelled flight.

The Court of Justice of the European Union (CJEU) has ruled that a collision leading to the cancellation of a flight can be classified as an “extraordinary circumstance” that in principle exempts the airline from the obligation to pay compensation. However, this exemption from the obligation to pay compensation is subject to strict criteria, especially when it comes to rebooking on alternative flights.

The court emphasises that rebooking measures must be thoroughly examined. Simply rebooking passengers on the next available flight of the same airline, which reaches the destination the day after the originally planned arrival, does not automatically meet the requirements of the regulation. Rather, airlines must demonstrate that they have taken all reasonable measures to offer passengers the earliest possible alternative transportation. This includes examining all available direct or indirect flight options – even with other airlines – that would allow passengers to reach their destination with less delay.

The court makes it clear that the obligation to pay compensation only ceases when there is no feasible alternative for the earliest possible transportation or the implementation of such an alternative would entail unreasonable sacrifices for the company. This assessment requires a case-by-case analysis, with the airline having to prove that it has exhausted all options to minimise inconvenience for passengers.

Conclusion:

The judgment underscores the importance of a careful and comprehensive examination of rebooking measures by airlines in the event of flight cancellations due to extraordinary circumstances. It clarifies that passengers’ rights to compensation and assistance are upheld even when unforeseen events lead to cancellations. By establishing clear criteria for the reasonableness of alternative transportation, the judgment strengthens the position of passengers and ensures that their interests are effectively protected within the framework of existing legislation.

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