Be right

Carsten Vyvers,

Reduced tariffs, worsened legal positions?

In the legal case presented here, the parties are in dispute about compensation payments in accordance with Regulation (EC) No. 261/2004 (Air Passenger Rights Regulation).

The plaintiff is a company employee. She booked a flight from Frankfurt to Tegel via the travel agency selected by her employer at the discounted rates. The employer had concluded a special agreement with the airline according to which he would receive particularly favorable and flexible fares. His employees were also able to use this fare for private purposes. However, the flight was canceled. The plaintiff therefore asserted claims under the Air Passenger Rights Regulation.

The decision:
The Local Court of Frankfurt am Main (judgment of April 4, 2019, file number 32 C 1964/18 (86)) dismissed the action. The plaintiff is not entitled to a claim under the Air Passenger Rights Regulation. Passengers may be entitled to compensation from the air carrier under Article 7(1) of Regulation (EC) No 261/2004 if a flight is canceled. However, this does not apply in cases such as this one. This is clear from the text of the regulation:
"This Regulation shall not apply to passengers traveling free of charge or at a reduced fare which is not directly or indirectly available to the public. However, it shall apply to passengers with tickets issued under a customer loyalty program or other promotional programs by an air carrier or tour operator".

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The plaintiff had made the booking via a company portal and at rates that were not available to the public. This special fare would not have been available on the open market. Third parties who would have spontaneously booked the same flight via open booking portals or the airline's website would therefore not have been able to take advantage of this fare. The special fare is not only cheaper, but also significantly more flexible than the products available on the open market. The criterion of public accessibility is therefore not met.

It is irrelevant for the assessment whether the booked fare was the cheapest fare for the selected route or not. Possibly cheaper fares that are available to the public have different conditions and are therefore not comparable with the fare here.

The practice:
When asserting claims under the Air Passenger Rights Regulation, it is necessary to check as a precautionary measure to which booking conditions this process is attributable. If the traveler (whether for professional or private purposes) has accessed an existing corporate customer tariff between his employer and the airline, he is not entitled to a claim in the event of a delay.

About the author:
Lawyer Carsten Vyvers (40) is a qualified forwarding agent. The specialist lawyer for transport and forwarding law works at the law firm Arnecke Sibeth Dabelstein Rechtsanwälte Steuerberater Partnerschaftsgesellschaft mbB in Frankfurt am Main. He advises companies in the transportation, forwarding and logistics sector.

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