Originally Posted by threeoh

Regulators could solve this problem by including actual penalty provisions for failing to pay proper compensation within prescribed timelines. At the moment there is no incentive -- except possibly frowning customers -- for United not to just reject all EC261 comp and wait for complaint from the government or a lawsuit to be filed, then pay promptly.

If the EU wanted to actually get airlines to comply promptly, they could have just said the airline has to pay triple if not paid within 60 days of receiving a valid claim. Or if you want to avoid pax gaming the system, just a $1,000 fine for any rejected claims later sustained by a government regulator or lawsuit.