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The cost of compensation

The new EU transportation law sets out a ?250 compensation payment for cancellation or denied boarding of flights less than 1,500 km-the majority of intra-European routes. Those traveling on longer distances can request a refund of ?400 to ?600. This is double the penalty airlines were previously obliged to pay. The legislation issued on February 17 provides stricter rules on informing passengers about flight cancellations (at least two weeks before departure) and on the provision of meals or accommodation as well.

Traditional airlines support the idea of establishing plain rules, but complain about the details and claim the EU has shown a tendency to over-regulate air-transport traffic. Agnieszka Róg, a spokesperson for Lufthansa, says the airline always paid 50 percent more than the old obligatory minimum, but says: "Airlines may have to pay even in case of a jammed airport or strikes." In her opinion it is unclear to what extent the carrier is responsible for the delay. Airlines would like to see a strike held by an airport operator clearly classified as an act of God, not carrier responsibility.

Yannis Capodistrias, marketing manager of easyJet, agrees and adds: "Low costs, or even passengers on the same flight could be discriminated against." In his opinion, whether one pays zł.100 for a no-frills ticket or zł.3,000 for a business class to London, one is still entitled to the same ?250. He says a fairer rate would be calculated in proportion to the cost of the ticket. Another factor is that calculating the risk might prove difficult.

"That's completely out of our control. Strikes happen in France all the time and it is in the middle [of most routes]," says Capodistrias, adding that a one-day breakdown of one of easyJet's regional hubs could result in paying the ?250 compensation for some 10,000 passengers. As a long-term result, some marginal routes for airlines might prove unprofitable and, says easyJet's manager, "it will automatically mean an increase in prices."

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