ECJ Advocate General proposes the Court to confirm its "Sturgeon"-Judgement
On May 15, 2012, ECJ Advocate General Bot has delivered his opinion in two pending cases where the national courts sought a review of the "Sturgeon"-Judgement. In this judgement, the Court of Justice had ruled that passengers whose flights are delayed may be treated, so far as the right to compensation is concerned, in the same way as passengers whose flights are cancelled. Thus, if they reach their final destination three hours or more after the arrival time as originally scheduled, they may seek flat-rate compensation from the airline, unless the delay has been caused by extraordinary circumstances.
In the two pending cases lodged by the Amtsgericht Köln (Cologne local court) and the High Court of Justice of England and Wales, Advocate General Bot sees no reason why the Court should reconsider its interpretation. That interpretation is based, amongst other things, on the very objective of the European legislation, which is to ensure a high level of protection for air passengers regardless of whether they are denied boarding or whether their flight is cancelled or delayed, since they are all caused similar serious trouble and inconvenience connected with air transport.
In his view, that interpretation is also consistent with the principle of equal treatment, by virtue of which passengers may not be treated differently depending on whether a flight has been cancelled or delayed when they suffer on that account similar damage consisting in a loss of time and thus find themselves in comparable situations so far as the right to compensation is concerned.
Furthermore, the Advocate General takes the view that EU law is compatible with the principle of proportionality. Compensating passengers whose flights have been delayed does not, in his view, result in an arbitrary and unduly severe financial burden on air carriers, particularly since the frequency of delays of more than three hours, which confer entitlement to compensation, appears to be limited. Moreover, airlines are not obliged to pay compensation if they can prove that the cancellation or long delay is caused by extraordinary circumstances.
The Advocate General observes that EU law is also compatible with the Montreal Convention and with the principle of legal certainty which requires that passengers and air carriers should know exactly the extent of their respective rights and obligations.
Finally, the Advocate General considers the submissions of certain airlines, which request that the Court limit the temporal effects of the judgment to be given. They submit that the interpretation given by the Court should not be relied on as the basis for passengers’ compensation claims prior to the date of judgment in the present cases, except with regard to passengers who have already brought court proceedings as at that date.
Advocate General Bot recalls that, as a rule, the Court’s judgments apply to legal relationships which arose and were established before the judgment ruling on a request for interpretation. He points out that the Court has already had the opportunity, in its judgment in Sturgeon, to rule on the question of compensation for passengers whose flights have been delayed and that it did not limit the temporal effects of that judgment. Accordingly, there is no need to limit the temporal effects of the judgment to be given in the present cases.
Source: ECJ press release 63/12 of May 15, 2012
Find full text of opinion here>>.
EU Commission to hold another stakeholders' conference on the PTD revision
The European Commission will hold a half-day stakeholders' conference on the revision of the Package Travel Directive (90/314/EEC) on 05 June 2012. The conference will take place at Charlemagne, room Jenk –– Rue de la Loi 170 – 1049 Brussels. It will primarily aim at hearing and collecting stakeholders' views on certain key issues related to the revision of the Directive.
Germany: Supreme Court to hear cases on airline personnel strikes as "extraordinary circumstances"
On June 5, 2012, the German Civil Supreme Court (BGH) will hear two cases involving flight cancellations due to airline personnel strikes. In one case the appelate court (LG Köln) had held that the operating carrier may not refer to a strike of its own personnel as an "extraordinary circumstance", in the other case the second instance court (LG Frankfurt/Main) had decided to the contrary.
There is no consensus yet whether or not a strike of the opreation carrier's own personnel can constitute "extraordinary circumstances" pursuant to article 5 sec 3 of Reg. 261/2004. It may therefore well be that the BGH lodges another reference for a prelimiary ruling of the ECJ to get a binding interpretation.
Germany: Fiscal Court decides over VAT on hotel vouchers
In a decsion of Sep. 8, 2011, the German Federal Fiscal Court (BFH) decided that
the sale of hotel vouchers qualifies as a procurement of hotel accommodation rendered in exchange for an advance payment of the customer,
which service has to be taxed in the month in which the sale of the voucher (and not the redemption) took place.
However, if subsequently the customer redeemed the voucher for accommodation in a foreign country, the procurement service is not taxable in Germany and the respective VAT adjustments have to be made accordingly.
BFH judgement V R 42/10 of Sep. 8, 2011, availbale in German here>>.
UK: Hotel owner fined in fire safety trial
A hotel owner has paid the price for ignoring fire safety laws and been hit with a £210,000 fine following a successful prosecution by London Fire Brigade. The case was a landmark hearing for the UK fire and rescue service, believed to be the first time that a jury – rather than magistrates or an individual judge - has convicted a defendant under the Regulatory Reform (Fire Safety) Order 2005.
The Chumleigh Lodge Hotel Limited and its sole director Michael Wilson, had pleaded not guilty to 12 offences under the Regulatory Reform (Fire Safety) Order 2005. The defendants were sentenced at Blackfriars Crown Court on Monday (6 February).
The offences date back to 18 May 2008 when London Fire Brigade was called to a fire at the hotel on Nether Street, Finchley. The blaze had spread quickly from a first floor guest bedroom, up a staircase to the floor above and along a corridor. Three people escaped from the fire, two by using the stairs and a third by climbing out of a second floor window.
Following the fire, London Fire Brigade fire safety inspectors visited the hotel and raised a number of serious fire safety concerns. These included defective fire doors, blocked escape routes and no smoke alarms in some of the hotel’s bedrooms. Mr Wilson was also unable to produce a suitable and sufficient fire risk assessment and was found not to have provided staff with adequate fire safety training.
Source: London Fire Brigade press releaseof Feb. 8, 2012
IHRB roundtable on Tourism Industry and Human Rights in London
The Institute for Human Rights and Business and Tourism Concern are convening a multi-stakeholder roundtable to explore the challenges and human rights responsibilities faced by the Tourism Industry. The event will take place in London on May 29, 2012.
The event will explore what corporate human rights due diligence means for the tourism industry. For detailed information look here>>.
UK: OFT fines British Airways in fuel surcharges price-fixing case
On April 19, 2012, the UK Office of Fair Trading (OFT) has announced its decision that British Airways (BA) and Virgin Atlantic Airways (VAA) engaged in anti-competitive practices in relation to the pricing of passenger fuel surcharges, and has imposed a fine of GBP 58.5 million on BA. VAA brought the matter to the OFT's attention and, under the OFT's leniency policy, has not been fined.
The OFT has concluded that between August 2004 and January 2006, BA and VAA co-ordinated their surcharge pricing on long-haul flights to and from the UK through the exchange of pricing and other commercially sensitive information. This decision brings the OFT's investigation to a conclusion.
Source: OFT press release 33/12 of 19 April 2012
EU: Open Consultation on the European Tourism Label for Quality Systems Initiative
Currently there is a wide variety of public and private initiatives that aim at defining the principles and criteria to be used by European tourism stakeholders for ensuring the development and provision of quality tourism within the EU.
However, these quality systems often show little consistency and coordination as they usually focus on individual sectoral or territorial objectives without following a European integrated approach. This fragmentation is a possible obstacle to achieving a EU level playing field for providing high-quality tourism service throughout Europe, which is likely to cause detriment to the competitiveness of the European tourism sector.
The objective of this public consultation is to obtain the views of a wide circle of public and private stakeholders and individuals on a possible EU action in this field.
As one of the possible actions, the Commission foresees the proposal for a European Tourism Label for Quality Systems, with a potential to bring greater transparency and consistency into quality evaluation at EU level.
The European label would recognise those existing and future tourism quality systems that comply with the common European criteria. The results of this consultation will help us assess the impacts of the proposed initiative.
All interested parties are invited to express their views by answering the questionnaire.
Further information and questionaire available here>>.
EU: Public consultation on a review of EU passenger ship safety legislation
The EU Commission has started a public consultation on a review of EU passenger ship safety legislation. The consultation will be open from 13/04/2012 to 5/07/2012.
The first set of questions relate to the main objective, namely, to identify and address within the current Directive 2009/45/EC on rules and standards for passenger ship safety any provisions that may need to be reviewed or updated and which lead to inefficiencies in the EU internal market for ships or maritime passenger services.
There is a second set of questions, for which the Commission's services seek stakeholder opinions, primarily from those with experience in the maritime field. Following the recent Costa Concordia cruise ship accident, some issues have been raised specifically addressing larger passenger ships. The Commission would like to use the opportunity of this consultation already planned as part of the review of the European legislation on passenger ship safety, to obtain stakeholder views on current arrangements.
All citizens and organizations are welcome to contribute to this consultation. In particular, views are sought from ship owners; ship builders; classification societies; seafarers; regulators at international, national, regional and local level; and passenger representatives.
Source: http://ec.europa.eu/transport/maritime/consultations/2012-07-05-passenger-ship-safety_en.htm
Questionaire availbale here>>.
EU Parliament gives green light to air passenger data deal with the US
A new agreement on the transfer of EU air passengers' personal data to the US authorities was approved by the European Parliament on Thursday. The deal sets legal conditions and covers issues such as storage periods, use, data protection safeguards and administrative and judicial redress. The agreement will replace a provisional deal in place since 2007.
Under the new agreement, US authorities will keep PNR data in an active database for up to 5 years. After the first 6 months, all information which could be used to identify a passenger would be "depersonalized", meaning that data such as the passenger's name or her/his contact information would be codified.
Source: EU Parliament News; for further details look here>>.