Originally Posted by
NickB
It is debatable whether failing to inform passengers of their rights under Reg 261/2004 is a breach of Article 15 of the Regulation and results in the passenger being able to claim the difference between what they have been offered and what they would be due in case of involuntary denial of boarding.
I would argue that it's not, because there are no rights applicable in the situation. Otherwise you would have to give a lecture to each passenger, in person, for all their possible rights in all possible situations. This is obviously not the right way to do it neither the spirit of the law.
As for the informational asymmetry, there might be some, no doubt, but I fail to see how someone not knowing about IDB rights applies here.
For one, it doesn't change anything. The passenger would know there is potentially a higher level of compensation in play... unless someone accepts the offer as stated. The same is true if they don't know about the ceiling. From auction perspective, there is no difference between someone accepting 250 offer and someone being offloaded for 250, either case, passenger valued their remaining on the flight at over 250 and didn't take the offer.
Besides, it's always in passengers interest to start the auction rather than go straight to IDB. If I want to fly, it lowers the risk of my being selected for IDB. If I don't care, it gives me the option of recouping some of the cost.