Mallorca Insights

Compensation for flight delays: Courts declare airline assignment clauses invalid

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If a flight is delayed by at least three hours or even canceled, passengers are entitled to lump-sum compensation payments of between 250 and 600 euros. This is provided for in the European Passenger Rights Regulation. However, airlines often do not recognize their customers' claims. Affected passengers then have to enforce their rights in court and bear the associated cost and litigation risk.

For some years now, internet portals specializing in European air passenger law have therefore been offering the option of claiming compensation on behalf of the passenger in return for a percentage share of the respective claim amount.

As a result, airlines began to include additional clauses in their general terms and conditions that prohibited the assignment of passenger rights to third parties, such as the aforementioned internet service providers. These clauses have been considered illegal throughout the EU for some time now and are not recognized in court in Germany, for example, when it comes to compensation claims for flight delays or cancellations.

The situation is different on the Balearic Islands: The courts there previously accepted the airlines' non-assignment clause, which meant that many passengers ended up with nothing because they shied away from the costs of a private lawsuit against the airline. The Regional Court of the Balearic Islands has now ruled in a landmark decision that the airline's clause violates European consumer law.

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