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Old Jul 25, 2019, 7:55 am
  #76  
 
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Originally Posted by Silver Fox
Well as the OP has had 6 posts since 2015 then it might be wise not to hold your breath! You know we have seen this one way traffic before though so we should not be surprised......
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Old Jul 25, 2019, 7:58 am
  #77  
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Often I feel that I learn something from the discussion in these threads. People wil either post things about government regulations, airline procedures, or suggestions about how to fix the problem.
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Old Jul 25, 2019, 8:07 am
  #78  
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Maybe. But, there are already numerous threads debating the merits of EC 261/2004 and other schemes. This was a pointed question regarding what might happen in this situation. A response to the effect of, "you are greedy" is not helpful. That is equally true whether the Regulation is a good, a bad, or entirely neutral thing.
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Old Jul 26, 2019, 7:48 am
  #79  
 
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Originally Posted by bambinomartino
Curious is there have been any studies to explore the following questions:
1. Did these regulations achieve their stated goal in any tangible way (are airlines behaving now), and
2. How did it affect ticket prices.

We just got a new Passenger Bill of Rights or whatever in Canada, and I will be surprised if it doesn't lead to price increases.
I would love to know the answer to both of those questions.

In terms of behavior, I'm guessing it certainly changed the incentive structures airlines face. I wonder if they schedule flights differently - ie longer turnaround times, offer fewer 'risky' connections, do more IROPs rebooking via OAL rather than insisting on only rebooking on that airline, etc?

Not knowing much about ticket pricing, my hunch is that ticket prices have probably continued to decrease as LCCs proliferated across Europe.
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Old Jul 26, 2019, 11:17 am
  #80  
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Originally Posted by AviationFreak
I would love to know the answer to both of those questions.

In terms of behavior, I'm guessing it certainly changed the incentive structures airlines face. I wonder if they schedule flights differently - ie longer turnaround times, offer fewer 'risky' connections, do more IROPs rebooking via OAL rather than insisting on only rebooking on that airline, etc?

Not knowing much about ticket pricing, my hunch is that ticket prices have probably continued to decrease as LCCs proliferated across Europe.
One unintended consequence of the EC261 downgrade compensation rules is that airlines tend to pick on those with the cheapest tickets (especially two for one deals and award tickets) and moreover, a carrier will downgrade one person from IFC to coach rather than downgrading one from IFC to business class and someone else from business class to PE, then one from PE to coach. Most of us would view the rolling downgrades as more fair versus someone suddenly discovering that they've been bounced from the IFC experience they were expecting to a middle seat in the last row of coach.
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Old Jul 26, 2019, 11:44 am
  #81  
 
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Originally Posted by AviationFreak
I would love to know the answer to both of those questions.

In terms of behavior, I'm guessing it certainly changed the incentive structures airlines face. I wonder if they schedule flights differently - ie longer turnaround times, offer fewer 'risky' connections, do more IROPs rebooking via OAL rather than insisting on only rebooking on that airline, etc?

Not knowing much about ticket pricing, my hunch is that ticket prices have probably continued to decrease as LCCs proliferated across Europe.
Intuitively your hunch makes sense. Globally it seems that all airlines are in a race to provide the cheapest tickets, since the only thing the vast majority of consumers care about is price (even when they state otherwise). LCC probably do not pay out as much in 261 comp since most of their pax probably do not know it exists, and even if the pax file a claim, I have heard LCCs tend to fight payouts much harder. As a result, LCCs set the price of airfares. Even on legacy carriers, I would be willing to bet that most eligible pax don't file a claim, even when they are entitled to receive it. There is probably a little higher cost baked into the price, but probably not more than a few buck. In any event, I have definitely received a lot more in 261 comp than I have paid in higher ticket prices
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Old Jul 26, 2019, 12:14 pm
  #82  
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The most recent semi-legitimate study on EC 261/2004 suggests that less than 2% of eligible claims are ever even filed. On the other hand, LoganAir recently announced that it may drop some routes originating in less wealthy, less populated areas of Scotland, which connect to BA flights worldwide at LHR because compensation claims under the Regulation have made marginally profitable routes "underwater."

One wonders whether there are other marginal routes which simply never make it to "launch" because the modeling suggests that claims will render the route unprofitable.

The one thing that is quite clear is that the Regulation has had zero impact on timeliness. Thus, if its purpose was to discourage tardiness, it has not moved the needle. But, it has put the children of some of the claims agents through university.
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Old Jul 26, 2019, 1:59 pm
  #83  
 
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Originally Posted by Often1
The most recent semi-legitimate study on EC 261/2004 suggests that less than 2% of eligible claims are ever even filed. On the other hand, LoganAir recently announced that it may drop some routes originating in less wealthy, less populated areas of Scotland, which connect to BA flights worldwide at LHR because compensation claims under the Regulation have made marginally profitable routes "underwater."

One wonders whether there are other marginal routes which simply never make it to "launch" because the modeling suggests that claims will render the route unprofitable.

The one thing that is quite clear is that the Regulation has had zero impact on timeliness. Thus, if its purpose was to discourage tardiness, it has not moved the needle. But, it has put the children of some of the claims agents through university.
Interesting. I get that this could be a concern that comes with the tradeoff of service to more remote/marginal places that probably need connections to the 'mainland' to remain viable. On the other hand, one has to also wonder if airlines should be operating a route if they cannot make it profitable without paying out claims for delayed/canceled flights. It sounds like they can't afford the cost of production - that's not to say a route like this shouldn't be potentially subsidized (ie EAS in the US), but I think saying EU261 is the cause is a bit off the mark.
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