Airlines to face record £1m fines for abandoning passengers under new rules

Airlines face fines of up to £1m if they fail passengers with unnecessary delays or unpaid refunds under legislation expected in the King’s Speech this autumn, i can reveal.

Ministers have been considering giving tougher powers to the UK’s aviation watchdog for months, but the response by some firms to this week’s air traffic chaos has underlined the urgency in Whitehall to act.

Under existing laws, introduced 20 years ago, the Civil Aviation Authority can only sanction an airline for delays if it pursues it through the courts – which can be a costly and time-consuming process.

In the last two decades, no airline has been fined and only one, Ryanair, has been ordered to pay out compensation after the CAA took legal action – prompting criticism that it is a toothless regulator.

Ministers are understood to be sympathetic to calls from the consumer group Which? and some holiday firms for the CAA to be given the power to impose direct instant fines without having to go through the courts.

The Department of Transport is understood to be in favour of the measures but they need to be signed off by No10 before they are included in the King’s Speech on 7 November, insiders told i.

Downing Street declined to comment.

After an apparent inputting error triggered a meltdown in the UK’s national air traffic control system on Monday, hundreds of thousands of people’s flights were cancelled. In the ensuing chaos, some passengers reported being stranded by their airlines without support, proper accommodation or clear communication.

Which? said while the air traffic control chaos was not the fault of airlines, the response of some firms showed it was time for Rishi Sunak to take action to toughen up the sanctions regime.

The CAA, which itself is also in favour of tougher powers to impose fines, took Ryanair to court in 2018 after a pilots’ strike triggered widespread delays, but after the firm appealed, compensation was not paid out to passengers until December last year.

By contrast, other countries have powers to issue substantial fines to airlines for delays and unpaid refunds and compensation.

As the legislation has not yet been drafted, it is not known the scale of the proposed fines that airlines could face for specific offences, but insiders said it was expected the maximum penalty could be substantial, and on a par with those levied by other countries and aviation authorities.

In June this year, the US aviation authority fined British Airways $1.1m after it received thousands of complaints about unpaid refunds during the pandemic, while in 2021 Italian regulators fined Ryanair 4.2m euros and easyJet 2.8m euros for their failure to pay prompt refunds to passengers during the pandemic. EasyJet is appealing the fine.

In July, transport minister Jesse Norman told the Labour MP Vicky Foxcroft in a written answer that tougher measures to protect airline passengers would be brought forward when “parliamentary time allows”.

A consultation document by the Department for Transport published earlier this year acknowledged the case for directly imposed fines by the CAA.

Rory Boland, Editor of Which? Travel, said: “Though airlines are not responsible for the ATC failures, many travellers will have found this chaotic situation has been made that much worse by some airlines’ failure to step up and deliver on their basic, legal obligations to passengers.

“It’s hard to miss the images of passengers left sleeping on airport floors, or scrambling to find and pay for their own alternative routes home from holiday, when they should have been receiving support from their airlines. This is nothing new though – every year we see some airlines failing to assist, refund or reroute passengers as they’re obliged to do when disruption happens.

“This behaviour can’t continue going unchecked. It’s absolutely vital that the Prime Minister steps up and shows his support for travellers by prioritising legislation for the Civil Aviation Authority to receive direct fining powers in the King’s Speech this autumn. Until the regulator has the enforcement powers it needs, airlines will continue to flout the rules without consequences.”

In the wake of Monday’s Nats meltdown, Rob Bishton, joint-interim chief executive of the CAA, said the watchdog was still working with airlines to ensure they were helping passengers.

He said: “The scale of the disruption has meant passengers have faced longer delays and in some cases are waiting several days for alternative flights, but airlines are working around the clock, putting on extra capacity to resolve the issue.

“If you are still waiting to come home, airlines have a responsibility to look after you while you wait. This means providing you with meals, refreshments and hotel accommodation. If airlines cannot do this, you can organise your own meals and accommodation then claim costs back.

“We are engaging with airlines and know that more flights are being provided, but in circumstances where this has not been possible due to the volume of passengers, consumers can book their own alternative air travel and claim the cost back from their airline.

“If you end up paying for things yourself or booking your own replacement flight or hotel, keep every receipt and make sure your claim is not excessive.

“Clear and accurate communication is important during times of disruption, and we are working closely with airlines to rectify any instances of wrong information being provided to passengers.”