Explanatory Memorandum to COM(2023)753 - Amendment of Regulations (EC) No 261/2004, (EC) No 1107/2006, (EU) No 1177/2010, (EU) No 181/2011 and (EU) 2021/782 as regards enforcement of passenger rights in the Union

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dossier COM(2023)753 - Amendment of Regulations (EC) No 261/2004, (EC) No 1107/2006, (EU) No 1177/2010, (EU) No 181/2011 and (EU) 2021/782 as ...
source COM(2023)753
date 29-11-2023



1. CONTEXT OF THE PROPOSAL

• Reasons for and objectives of the proposal

This legislative proposal for the revision of the Passenger Rights regulatory framework1 will help to incentivise the use of collective modes of transport and consequently also to implement the Green Deal. It is a key action of the Sustainable and Smart Mobility Strategy2 (SSMS) adopted by the Commission in 2020.

Passenger rights rely on a dozen separate and complementary rights prior, during and after the journey, including inter-alia a right to accessibility and assistance for persons with disabilities and reduced mobility (PRM), a right to information before and at the various stages of travel, a right to the fulfilment of the transport contract in case of disruption, a right to compensation under certain circumstances, a right to a quick and accessible system of complaint handling. As the EU passenger rights apply annually to more than 13 billion passenger travels in the EU, the protection of passengers has become a flagship initiative of the EU. Nevertheless, despite substantial progress made in the last 20 years, many challenges remain.

This revision addresses two problematic areas, which were confirmed by an impact assessment. First and foremost, shortcomings in the implementation and enforcement of passenger rights prevent passengers of all modes of transport from enjoying their rights fully. This problem has been recurring since the adoption of the various passenger rights Regulations. It was already identified in reports and studies of the Commission.3

As shown by several Eurobarometer surveys, the lack of awareness of passengers on their rights and the problems with enforcing these rights are recurrent issues. The last survey of 20194 shows that only about one in three EU citizens knows that they are protected by specific rights when travelling via collective transport in the EU.

The lack of passenger awareness and problems with the enforcement of their rights were also highlighted by the European Court of Auditors (ECA) in its report “EU passenger rights are comprehensive, but passengers still need to fight for them” of 20185. The COVID-19 pandemic showed this, too: passengers were not aware of their rights and often did not know whom to turn to when they wanted to enforce them. The ECA’s Special report of 2021 ‘Air passenger rights during the COVID-19 pandemic: Key rights not protected despite Commission efforts’ came to the same conclusion6.

The second problem addressed in this proposal is more targeted: it focuses on the right to reimbursement of the full cost of an airline ticket when the flight is not carried out as planned, an issue which was exacerbated in the COVID-19 pandemic. Currently, reimbursement rules are unclear when air passengers make their bookings via an intermediary.

In conjunction with this proposal, a third problem, the protection of passengers during multimodal journeys, is addressed in another legislative proposal dealing with the extension of passenger rights to cover multimodal journeys7.

As regards shortcomings in the implementation and enforcement of passenger rights in all modes of transport, objectives are twofold: first, to ensure effective and efficient enforcement across all Member States, allowing national enforcement bodies (NEBs) to have more effective tools for the monitoring of operators’ compliance with passenger rights and second, to ensure a more effective complaint handling for passengers, providing them with a quick, simple and accessible system. The proposal will contribute to harmonising rules for the various modes, making best use of recent developments in the new rail passenger rights Regulation (EU) 2021/782 and of the Commission proposal of 2013 to amend Regulation (EU) No 261/20048. All passengers benefiting from passenger rights would benefit from these new measures potentially.

As regards the reimbursement of air passengers having made their booking via an intermediary, the objective is to ensure a clear reimbursement procedure for all actors involved (e.g., carriers, intermediaries and passengers). Around 450 million passengers a year who booked their tickets via intermediaries would potentially benefit from these measures.

The question of standardised dimensions for carry-on luggage has been raised recently by the European Parliament in a resolution9. The Commission proposal of 2013 to amend Regulation (EU) No 261/2004 already addresses some of the concerns of the European Parliament, notably the obligation of air carriers to inform passengers of the baggage allowance applicable to their respective bookings. However, passengers also often face confusion as regards the permitted hand luggage depending on airline and fare class, due to the proliferation of different dimensions and weights permitted by different airlines and for different classes of tickets. While noting air carriers’ freedom to set air fares, there should be a small number of common sizes and weights to reduce the confusion. Air carriers should work with aircraft manufacturers and luggage manufacturers as necessary to agree on these standards, but also inform about their adherence to industry standards on weight and dimensions of hand luggage in the context of their service quality standards on which they have also to report.

Finally, in other transport modes than air, a carrier which requires a person with disability to travel accompanied by an assistant has to let the assistant travel free of charge. The rules related to the different transport modes aimed at further implementing accessibility as set forth in Article 9 of the UN Convention on the Rights of Persons with Disability (UNCRPD) should be further aligned and include also air transport. If an air carrier requires a person with disability to travel accompanied by an assistant in order to comply with the statutory aviation safety requirements, the air carrier should be required to transport the accompanying person free of charge. This is an important precondition for persons with disability and persons with reduced mobility to use air transport comparable to others. Therefore, this will be a significant step to implement the accessibility obligations set forth in the UNCRPD in EU law.

Overall, the reform addresses the shortcomings in the implementation and enforcement of existing passenger rights and does not establish any new passenger rights as such. It strikes a balance between the protection of passengers and the obligations of carriers and infrastructure managers.

This initiative is part of the Commission Work Programme 2023 under Annex II (REFIT initiatives), under the heading ‘An Economy that Works for People’.10

• Consistency with existing policy provisions in the policy area

The Commission committed in the Sustainable and Smart Mobility Strategy to take action to ensure that EU passenger rights are better implemented, clearer for both carriers and passengers, offer adequate assistance and reimbursement, including when disruptions arise, and appropriate sanctions are applied if the rules are not properly observed as well as to consider options and benefits to go further with a multimodal framework for passenger rights (Action 63). The proposal is therefore in line with the passenger rights policy.

To a significant extent, proposed amendments dealing with enforcement take stock of both the new rules in the new rail Regulation (Regulation (EU) 2021/782) and of the Commission proposal of 2013 to amend Regulation (EU) No 261/2004. This would make possible the simplification and harmonisation of the regulatory framework to the benefit of the European passengers.

The new Regulation on rail passenger rights has introduced several new rules which could also be useful for the protection of passengers travelling with other modes of transport, such as the obligation for operators to share relevant information with NEBs, better tools for NEBs and a new EU-wide standardised form for compensation and reimbursement. The policy measures presented in this proposal are therefore complementary to the new rail passenger rights Regulation.

With regard to air passenger rights, the Commission, already in 2013, proposed changes to regulation (EC) No 261/2004 to clarify passenger rights and to make them more effective. In the Commission’s view, the rules proposed in 2013 for the better enforcement of air passenger rights are still fit for purpose. It has been a priority pending file in its past annual work programmes and remains a priority pending file for 2024.11 The three EU institutions established common legislative priorities for 2023 and 2024, on which they want to achieve substantial progress, and the proposal of 2013 is also listed there.12

In this context, the proposed rules on better enforcement identified in the 2013 air proposal (such as the possibility for the Commission to request NEBs to investigate specific suspected practices by operators) are also useful for the protection of passengers using other modes. It is, therefore, proposed to extend those rules to the other modes of transport. Regarding air passenger rights, the policy measures presented in this proposal are therefore complementary to the legislative proposal of 2013.

In 2021, the Commission published three evaluations of the regulatory framework for passenger rights for waterborne, bus and coach transport, as well as for PRM travelling by air13. The three evaluations show inter alia that there is room for improvement when it comes to enforcement of these Regulations.

As shown by several Eurobarometer surveys, the lack of awareness of passengers of their rights and the problems with enforcing these rights are recurrent issues. The last survey of 201914 shows that only about one in three EU citizens knows that they are protected by specific rights when using air, rail, bus and coach and waterborne transport in the EU (a similar result as the 2014 Eurobarometer). For this reason, the Commission regularly organises campaigns to promote passenger rights awareness, and offers information on the Single Digital Gateway ‘Your Europe’ as well as on a passenger rights app that is available in all official EU languages.

The lack of passenger awareness and problems with the enforcement of their rights were also highlighted by the European Court of Auditors (ECA) in its reports of 2018 and 2021 mentioned above.

• Consistency with other Union policies

The proposal takes into consideration other EU legislation that is currently also being revised or developed, to ensure harmonisation and coherence. These include in particular the ongoing initiatives on consumer protection - which include the EU passenger rights Regulations – which are also complementary, but not overlapping with this initiative.

Regarding the review of Directive (EU) 2015/2032 on package travel and linked travel arrangements (PTD), the rules on package travel under the PTD and the proposal to revise it,15 are also consistent with this proposal: Albeit both deal with travel, they concern two separate markets. Whereas this proposal – in line with the existing legislation on passenger rights and the proposal to amend these– exclusively deals with passenger transport services (e.g. a combination of a rail and bus service), the rules on package travel cover a combination of different travel services offered by an organiser (e.g. a package combining a flight and hotel accommodation). Nevertheless, if a service provider (carrier) cancels the service, the organisers under the proposal for the PTD as well as the intermediaries who paid for transport tickets from their own account for the passenger under this proposal have the right to receive the reimbursement from these service providers within 7 days. Passengers who book an air ticket via an intermediary will also be reimbursed within 14 days like package travellers. While the proposal for the package travel Directive covers also issues like prepayments and insolvency protection, the protection of passengers in the event of insolvency of air carriers and major crisis will be addressed in the ongoing revision of Regulation (EC) No 1008/2008 (Air Services Regulation), namely through measures to improve the financial fitness and resilience of air carriers and pre-empt situations of bankruptcy or liquidity crisis.16

The enforcement of consumer protection legislation rests on two complementary pillars. Firstly, consumers can make use of private enforcement tools: redress before a court or out-of-court settlement. The Commission adopted in 2023 a proposal amending Directive 2013/11/EU (the Alternative Dispute Resolution Directive) to further enhance out-of-court settlement17, either individually or as a group. This proposal enhances Alternative Dispute Resolution, because it requires national enforcement bodies to inform passengers about the possibilities of Alternative Dispute Resolution. Secondly, consumers can be protected by public enforcement, which is carried out mainly by public authorities protecting the collective interest of consumers. Passenger rights are primarily enforced by the national enforcement bodies responsible for the EU passenger rights Regulations. Regulation (EU) 2017/2394 (the Consumer Protection Cooperation Regulation) is a complementary instrument establishing a cooperation framework to allow national authorities from all countries in the European Economic Area to jointly address breaches of consumer rules (including passenger rights) when the service provider and the consumer are established in different countries. Actions based on the Consumer Protection Cooperation Regulation against airlines and intermediaries have shown that the dialogues can be a useful instrument to support enforcement of passenger rights, but also that the rules in force need to be strengthened, especially when an intermediary was involved in buying the ticket.18

This proposal is consistent with the Commission Delegated Regulation (EU) 2017/1926 on Multimodal Travel Information Services (MMTIS).19 This Regulation requires data holders (e.g. transport authorities, transport operators and infrastructure managers) to make data on transport networks (including data on transport services such as timetables and hours of operation) accessible to data users, via national access points established by the Member States, when the data is available in a digital machine-readable format. It is also consistent with the proposal for the revision of the Commission Delegated Regulation (EU) 2017/192620. This revision extends this requirement by gradually adding, from December 2025 to December 2028, dynamic data types such as real-time arrival and departure times. This is of essential importance for this proposal regarding real-time information to passengers about travel disruptions when switching modes. This will be further supported by the proposed amendment of the ITS Directive:21 This amendment should ensure that ITS applications in the field of road transport enable seamless integration with other modes of transport, such as rail or active mobility, thus facilitating a shift to those modes whenever possible, to improve efficiency and accessibility.

This proposal is also consistent with the Communication on a common European mobility data space (EMDS), which outlines the proposed way forward for the creation of a common European mobility data space, including its objectives, main features, supporting measures and milestones. Its objective is to facilitate access, pooling and sharing of data from existing and future transport and mobility data sources.22

2. LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY

• Legal basis

Article 91(1) of the Treaty on the Functioning of the European Union (TFEU) serves as the legal basis for the adoption of EU legislation related to a common transport policy. This provision is the legal basis for the passenger rights Regulations currently in force. Furthermore, pursuant to Article 100(2) TFEU the Union legislator may lay down appropriate provisions for sea transport.

• Subsidiarity (for non-exclusive competence)

The level of protection of passengers was rather limited before the passenger rights Regulations were adopted. Within the single market, many carriers (not only airlines but also railway undertakings and shipping companies, and increasingly bus companies) provide their services in different Member States and even beyond. Harmonisation of passenger rights at EU level is therefore necessary to ensure a level playing field for all actors involved in the provision of transport services (e.g., carriers, infrastructure managers (especially relevant for PRM), intermediaries, etc.) which are often cross-border. It remains that effective enforcement rests on the cooperation between Member States and that monitoring activities are performed at national level. Regarding reimbursement by intermediaries, the air travel market in the EU is essentially cross-border, with some of the largest intermediaries being international market players. Action at national level may lead to distortions of the internal market while passengers must be able to assert their rights in the same manner and to benefit from the same protection regardless of the Member State where they travel.

The new measures related to enforcement would allow making existing rights more effective by ensuring that NEBs’ enforcement practices would incentivise carriers, terminal operators and intermediaries (especially those who do not always apply the existing rules on passenger rights rules in a fully compliant way) to deliver the best protection to passengers and by removing obstacles that prevent citizens from effectively exercising their rights under EU law. A more effective implementation of passenger rights will incentivise people to use more public transport instead of private cars and contribute this way to the Green Deal. Finally, the new measures will contribute to enhance the protection for air passengers across the EU, ensuring that they will be reimbursed also if they booked via an intermediary. For these reasons, the problems identified above require action at EU level.

• Proportionality

As detailed in chapter 7 of the Impact Assessment accompanying this proposal and below under point 3, none of the two options dealing with enforcement goes beyond what is necessary to reach the overall policy objectives to ensure the proper functioning of the single market for passenger transport and to achieve a high level of consumer protection for passengers when travelling within one mode or when switching modes during their journey, by enabling carriers, intermediaries and (especially for PRM) terminal operators and national administrations to apply and enforce these rights in an efficient and effective manner. The same applies to policy options addressing the lack of clarity of reimbursement rules when a flight is booked via an intermediary.

• Choice of the instrument

Since this is a proposal for revising five existing Regulations, the instrument chosen is also a Regulation.

3. RESULTS OF EX-POST EVALUATIONS, STAKEHOLDER CONSULTATIONS AND IMPACT ASSESSMENTS

• Ex-post evaluations/fitness checks of existing legislation

In 2020-2021, the Commission performed evaluations of the passenger rights Regulations for air PRM (Regulation (EC) No 1107/2006), waterborne (Regulation (EU) No 1177/2010) and bus and coach (Regulation (EU) No 181/2011). The three evaluations highlight that there are still challenges in particular when it comes to applying these rules and monitoring and enforcing them. They showed that the magnitude of compliance monitoring activities across Member States varies significantly, and national enforcement bodies (NEBs) are often not sufficiently aware whether and how passenger rights are protected. The total amount of complaints submitted to NEBs remains low or very low overall: around 15 complaints per million passengers as regards for Air PRM passenger rights, around 1 complaint per million passengers for waterborne passenger rights and around 1.5 complaints per million passengers for bus and coach passenger rights, but it remains unclear whether this is the case because the passenger rights are well protected or whether passengers do not complaint, and if so for which reasons, including because they are unaware of the passenger rights.

• Stakeholder consultations

The objective of the consultations was to collect qualitative and quantitative evidence from relevant stakeholder groups and from the general public.

The relevant stakeholder groups consist of organisations representing consumers and passengers (including persons with disabilities), NEBs and other public authorities, alternative dispute resolution bodies, carriers (airlines, railway undertakings, bus and coach companies, shipowners) and their associations, terminal operators (airport managing bodies, railway station managers, bus and coach terminal operators, port terminal operators) and their associations; intermediaries (intermediary ticket vendors, online travel agents, package travel organisers) and their associations, insurance companies and insolvency protection funds, credit card companies and claim agencies.

The Commission consulted stakeholders via the following methods: responses to the Call for Evidence, online Open Public Consultation, targeted public consultation of the relevant stakeholder groups by online questionnaires, interviews, workshops and NEB expert group meetings1.

• Collection and use of expertise

Contents

1.

Court of Auditors


The European Court of Auditors www.eca.europa.eu/Lists/ECADocuments/SR18_30">Special Report no 30/2018: “EU passenger rights are comprehensive but passengers still need to fight for them” as well as the Special Report 15/2021 on Air passenger rights during the COVID-19 pandemic, were taken into account. These recommendations are aiming to improving the coherence, the clarity, and the effectiveness of the EU passenger rights framework and further empowering the national enforcement bodies and enhancing the mandate of the Commission.

2.

Evaluation studies


The three evaluations of the passenger rights for waterborne, and bus and coach transport as well as for PRM travelling by air, published in 2021, also served as external expertise.

3.

Other studies and surveys


External studies on the current level of protection of air passenger rights in the EU2 (2020) and on passenger rights in multimodal transport3 (2019) were also considered as well as the Eurobarometer survey on passenger rights carried out in 2019.4


4.

Impact assessment


An external study was carried out to support the impact assessment.

The proposal for a Regulation amending Regulations (EC) No 261/2004, (EC) No 1107/2006, (EU) No 1177/2010, (EU) No 181/2011 and (EU) 2021/782 as regards enforcement of passenger rights in the Union is accompanied by an impact assessment report, which received a positive opinion with reservations from the Regulatory Scrutiny Board (RSB) on 7 July 2023. The impact assessment report was revised in accordance with the Board’s findings and recommendations. The problem analysis and the analysis of benefits were strengthened, especially with regard to the expected consumer benefits. A more detailed assessment of the impacts on competitiveness of the most affected economic actors was added.

The impact assessment considered in detail policy options addressing the two problem areas which are covered by this proposal: (1) passengers not fully benefitting from their rights due to shortcomings in implementation and enforcement and (2) unclear reimbursement rules when flights were booked via an intermediary.

As far as this proposal is concerned, the impact assessment’s preferred option is a combination of those options scoring best for each problem area, i.e., policy option (PO) 1.2 for enforcement and PO 3.2 for reimbursements.

As regards the area of enforcement, two policy options were considered:

PO 1.1 aims to harmonise enforcement and complaint handling rules by introducing measures which exist in the new Regulation (EU) 2021/782 on rail passenger rights (measures a) to d)) or in the Commission’s 2013 proposal on air passenger rights (measure e)) in other modes of transport:

(a) carriers, terminal managers and intermediaries will have to provide NEBs with relevant data at NEBs’ request; the measure will have a very positive impact on the supervision activity performed by NEBs as it will substantially develop their knowledge on stakeholders’ behaviours.

(b) carriers and terminal managing bodies will have to adopt and implement service quality standards and report about their implementation; carriers will also have to inform passengers and NEBs about their in the implementation of passenger rights.

(c) mandating the Commission to adopt standardised reimbursement and compensation request forms to make easier for passengers to make their claims; these forms will help citizens to submit a complete file with all the relevant details and operators will be obliged to accept them, keeping in mind that existing forms from operators or NEBs would remain valid.

(d) NEBs will have to inform passengers, where necessary, about their right to seek individual redress using alternative dispute resolution bodies.

(e) the Commission may request investigations by NEBs, especially in cases involving several Member States to trigger relevant cooperation between Member States.

PO 1.2 consists of all the measures in PO 1.1 plus two additional measures:

(f) Improving the information to passengers on their rights as a passenger with the aim to raise their awareness of these rights, in particular at the time of booking and during journey disruptions.

(g) Obliging NEBs to perform compliance monitoring activities on the basis of a risk assessment; NEBs will make best use of data received from stakeholders and will develop a monitoring programme based on the assessment of the risk of recurrent non-compliance with passenger rights rules. Carriers and terminal managers will ensure that non-conformities identified during NEB monitoring activities are corrected promptly.

The preferred policy option for the enforcement area is PO 1.2, which is the policy option that best ensures that carriers and terminal operators comply with their respective obligations, contribute to the effective complaint handling for passengers, and best ensure that NEBs enforce passenger rights most effectively and efficiently across all Member States. PO 1.2 generates higher additional costs to carriers, terminal operators and NEBs than PO 1.1, but the difference is marginal (EUR 130.7 million for PO 1.1 versus EUR 138 million for PO.1.2, expressed as present value over 2025-2050 relative to the baseline) and the additional costs are outweighed by the increased effectiveness of the measures presented. PO 1.2 is also the most effective option. It goes further aligning enforcement efforts across Member States.

As regards reimbursements in money when air tickets were booked via intermediaries, three options were considered in the impact assessment: PO 3.1: the option that the passenger may only request the reimbursement from the carrier, PO 3.2: the option that the carrier can decide whether the passenger has to request the reimbursement from the intermediary (provided the intermediary agrees to this) or the carrier, and PO 3.3: the passenger can choose whether to request the reimbursement to the intermediary, or the air carrier. POs 3.1 and 3.2 were considered to be equally effective in ensuring clarity on the reimbursement process, since both intermediary and air carrier would establish clarity upfront, prior to booking. In terms of efficiency, PO 3.2 scored best, with the least costs for all affected parties, followed by PO 3.3 and lastly PO 3.1. POs 3.2 and 3.3 were considered as equally coherent, in particular since they create an alignment with the Package Travel Directive and its ongoing review. As regards subsidiarity and proportionality, PO 3.2 scored much better than the other two. It is the only option which reflects the current air carrier distribution models and is least invasive in terms of market practice. For these reasons, PO 3.2 was chosen as preferred option. It is assumed to generate administrative costs for air carriers of 0.07 million EUR and administrative costs for intermediaries of 57.42 million EUR, as well as hassle cost savings for consumers of EUR 1,679.1 million (all figures expressed as present value over 2025-2050 relative to the baseline).5

The preferred option is expected to have very limited employment and environmental impacts. It will result in increased confidence of passengers in enforcement of passenger rights, including when buying air tickets via an intermediary, which will in turn support the shift towards more sustainable transport choices by consumers on a given journey. The preferred option is consistent with the environmental objectives of the European Green Deal and the European Climate Law. It contributes towards Sustainable Development Goal 13 (Take urgent action to combat climate change and its impacts). The impact on SMEs in terms of additional costs is estimated to be very limited.6

• Regulatory fitness and simplification

This initiative is part of the Commission Work Programme 2023 under Annex II (REFIT initiatives), under the heading ‘An Economy that Works for People’.7 It has an important REFIT dimension in terms of harmonisation of rights across modes. For passengers and NEBs, the proposed EU-wide standardised claim form that passengers can always resort to (instead of using claim tools that vary across operators) will simplify passengers’ lives, as well as possibly those of the operators and NEBs. For transport operators it will be clearer how to comply with the existing rights, making implementation more efficient. For operators applying passenger rights in a compliant manner, the additional obligations will be performed at the lowest cost. For operators whose non-compliance is recurrent in the application of certain rights, the new obligations will encourage change. The work of the NEBs will be made more efficient because transport operators will have to share more data with them about their compliance with the rules, enabling a risk-based approach to their oversight activities.

The initiative also presents simplifications for passengers who use intermediaries to buy their air tickets, as it becomes clear how they will be reimbursed (most importantly: by whom and when). Clear deadlines for intermediaries’ reimbursement payments to passengers will save the passenger the hassle of having to check different terms and conditions, in which currently, the payment delays are often not stipulated. For air carriers and intermediaries alike, the reimbursement process will be made more efficient as the process and the deadlines, and the information channels, will be clear for all parties.

SMEs impacted by the initiative account for 95% of air intermediaries, 85% of bus and coach operators and 99% of waterborne passenger operators.8

The impact on EU competitiveness or international trade is expected to be largely neutral.

All but one of the measures in the area of enforcement regulate the relationship between NEBs and operators or the Commission and NEBs, and they are adapted to the digital environment. The only measure that has a direct impact on citizens is the introduction of standardised reimbursement and complaint claim forms. Such forms will be available both in physical and digital format: it is expected that most citizens will use the digital format, but those citizens who for any reasons do not use digital solutions will not be excluded.

The measures foreseen in the area of reimbursements are appropriate for both the physical and the digital environment. Passengers should be informed about the online, telephone postal contact details of the body to whom the passenger should request the reimbursement. The air carrier’s single point of contact is foreseen to offer telephone, postal and online means of contact. Air intermediaries and air carriers should inform passengers on the reimbursement process on their websites, but also on the booking receipt.

5.

Sustainable Development Goals


The initiative contributes towards Sustainable Development Goals (SDG) #10 Reduce inequality within and among countries (regarding passengers with disabilities and reduced mobility), #13 Climate action (enhanced passenger rights may incentivise people to use more public transport instead of private cars), and #16 Provide access to justice for all and build effective, accountable and inclusive institutions (enhanced and accessible means of redress for passengers and better tools for enforcement for the administration).

6.

Climate consistency check


The proposal is consistent with climate neutrality objective set out in the European Climate Law and the Union 2030 and 2050 targets and contributes to achieve SDG #13 Climate action as mentioned above.

Fundamental rights

The proposal respects fundamental rights and observes the principles recognised in the Charter of Fundamental Rights of the European Union, in particular Articles 21, 26, 38 and 47 concerning, respectively, the prohibition of any form of discrimination, the integration of persons with disabilities, the ensuring of a high level of consumer protection, and the right to an effective remedy and to a fair trial.

The obligation to share passengers’ personal data has an impact on the right to protection of personal data under Article 8 of the Charter. This obligation is necessary and proportionate in light of the objective of ensuring that consumers are effectively protected in accordance with Article 38 of the Charter. In addition, to further mitigate the effects on data protection, data protection safeguards are implemented, namely purpose limitation and a clear retention period. Further provisions of the proposal concerning the use of passengers’ contact details contribute to respect the right to protection of personal data under Article 8 of the Charter by clearly laying down which personal data can be used for specified purposes (for informing, reimbursing and rerouting the passenger as well as for safety and security reasons) and under which conditions.

4. BUDGETARY IMPLICATIONS

The proposal has no implications for the EU budget.

5. OTHER ELEMENTS

• Implementation plans and monitoring, evaluation and reporting arrangements

The Commission will evaluate the implementation and effectiveness of this initiative on the basis of progress indicators listed in the Impact Assessment such as the number of complaints that NEBs, alternative dispute resolution bodies and European Consumer Centres receive, the number and type of monitoring activities that NEBs carry out and the number of sanctions they impose on operators.1 In addition, the Eurobarometer surveys will serve as an indicator to measure passengers’ knowledge about their rights and their satisfaction with the way transport operators comply with EU passenger rights. The reports of carriers on the implementation of their service quality standards will also be a useful tool to evaluate the intervention. As regards reimbursements when the air ticket was booked via an intermediary, the number of passenger enquiries and complaints with NEBs about being ping-ponged between carriers and intermediaries, and complaints with NEBs regarding intermediaries (to be expected to rise as currently, NEBs do not cover intermediaries), which NEBs report to the Commission, will be important indicators.

In its Communication on ‘Long-term competitiveness of the EU: looking beyond 2030’2, the Commission committed to rationalise and simplify reporting requirements without undermining the related policy objectives. This proposal is in line with those aims. Although it creates a new obligation for air, bus and coach and waterborne carriers3 to publish in every two years a report about the implementation of their service quality standards with key performance indicators related to passenger rights (e.g. punctuality, complaint handling, cooperation with the representatives of persons with disabilities), these reports are absolutely necessary for monitoring and enforcing passenger rights. Carriers indicated in the stakeholder consultation that they already collect the data in question, and the frequency of reporting (only every two years) was chosen to keep the costs of implementing these measures low. In addition of being a valuable source of information for NEBs with limited resources to carry out their monitoring and enforcement tasks, these reports will allow passengers to take informed decisions about which carrier to choose based on the quality of their performance and could also encourage competition between carriers based on the quality of their performance.

• Detailed explanation of the specific provisions of the proposal

The proposal will have limited impact on the structure of the five amended Regulations. It will complement the existing regulatory framework by adding to the existing modal-based rules a set of comprehensive requirements. The structure of the new Regulation will consist of the following articles.

7.

Recitals


The recitals will put the focus on the contribution of the passenger rights to the common transport policy, the consumer protection policy, the objectives of the Sustainable and Smart Mobility Strategy. The recitals also highlight the problems and objectives addressed by the proposal and the rationale of the proposed measures.

8.

Article 1: Amendments to Regulation (EC) 261/2004 (on air passenger rights)


The article contains definitions of the new elements in the amended Regulation and specific provisions for the new requirements: reimbursement when ticket was booked via an intermediary; improving information to passengers on their rights at the time of booking and during journey disruptions; service quality standards, common form for reimbursement and compensation requests, risk-based approach to the monitoring of compliance, sharing of information with national enforcement bodies and information about alternative dispute resolution ADR by national enforcement bodies.

9.

Article 2: Amendments to Regulation (EC) No 1107/2006 (on rights of disabled persons and persons with reduced mobility when travelling by air)


Following definitions of the new elements in the amended Regulation, the article contains the specific provisions for the new requirements: service quality standards, common form for reimbursement and compensation requests, risk-based approach to the monitoring of compliance, sharing of information with national enforcement bodies, information about ADR by national enforcement bodies, cooperation between Member States and the Commission and Passenger Rights Committee.

10.

Article 3: Amendments to Regulation (EU) No 1177/2010 (on waterborne passenger rights)


Following definitions of the new elements, the article contains the specific provisions for the new requirements amending the Regulation; common form for reimbursement and compensation requests, improving information to passengers on their rights at the time of booking and during journey disruptions; service quality standards, risk-based approach to the monitoring of compliance, sharing of information with national enforcement bodies, information about ADR by national enforcement bodies, cooperation between Member States and the Commission and Passenger Rights Committee.

11.

Article 4: Amendments to Regulation (EU) No 181/2011 (on passenger rights for bus and coach)


Following definitions of the new elements in the amended Regulation, the article contains the specific provisions for the new requirements: common form for reimbursement and compensation requests, improving information to passengers on their rights at the time of booking and during journey disruptions; service quality standards, risk-based approach to the monitoring of compliance with passenger rights, sharing of information with national enforcement bodies, information about ADR by national enforcement bodies, cooperation between Member States and the Commission and Passenger Rights Committee.

12.

Article 5: Amendments to Regulation (EU) 2021/782 (on rail passenger rights)


The article contains definitions of the new elements in the amended Regulation and the specific provisions for the new requirements: means of communication to passengers, the risk-based approach to the monitoring of compliance with passenger rights, and cooperation between Member States and the Commission.

Articles 6 contains the common provisions of the Regulation with regard to entry into force.

Finally, annexes of the Regulation contain detailed specifications dealing with service quality standards in all modes except rail.