Willie Walsh, director general of the International Air Transport Association (IATA), said on Tuesday that the European Union has taken “very little action” to address airlines’ competitiveness and criticised its passenger compensation policy. European airlines have faced numerous challenges in recent years from air traffic control strikes, especially in France, engine manufacturer issues and delays in new, fuel-efficient aircraft from Boeing. EU institutions are currently negotiating a reform of the bloc’s 20-year old passenger rights’ regulation, called EU261, which Mr Walsh said was long outdated. Mr Walsh said the compensation scheme for flight delays punishes 99 per cent of passengers as fewer than 1 per cent of flights are delayed past the three-hour threshold. The European Parliament, however, wants to axe the thresholds and add the ability to bring a free cabin bag, among other changes.
