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LY No Longer Paying EU 261 Compensatoion

LY No Longer Paying EU 261 Compensatoion

Old May 10, 18, 2:39 am
  #1  
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LY No Longer Paying EU 261 Compensatoion

El Al stops payout for flight delays from Europe (Globes)

Originally Posted by Globes
Despite a German court ruling that it is subject to EU law, El Al claims only Israeli law, which is much less favorable to passengers, applies to it.
Until now, LY had held (contrary to EU law) that EU 261 only applied to non-Israeli citizens. Now, however, they are ignoring a German court and completely ignoring it, even for EU citizens (not that such a residency/citizenship distinction applies under the law).

Ironically, according to the article, of the 3 international Israeli-based airlines, only LY has offices in Europe (making them fully liable to EU actions), yet are the worst offenders when it comes to dealing with EU 261.

I really don't know what game LY is playing, as it seems clear the law is NOT on their side. The only thing I can think is that as long as Israelis won't fight them in European court, they're saving money. But in the long run, there may be a company willing to fight on a class-action level which would force LY to pay out bigly, not to mention potential fines.
joshwex90 is offline  
Old May 10, 18, 3:37 am
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Originally Posted by joshwex90 View Post
I really don't know what game LY is playing, as it seems clear the law is NOT on their side. The only thing I can think is that as long as Israelis won't fight them in European court, they're saving money. But in the long run, there may be a company willing to fight on a class-action level which would force LY to pay out bigly, not to mention potential fines.
Unless they plan to abandon the European market entirely, I don't see how they could get around paying it. Passengers, winning cases against LY, will eventually take enforcement actions. It wouldn't be the first time someone had an aircraft seized, resulting in further EU261 claims (disobeying a court order isn't exactly an extraordinary circumstance). Aviation authorities will probably impose fines.
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Old May 11, 18, 7:32 am
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This is a very Israeli corporation style of response. They know they will have to pay out - they will not abandon Europe entirely. They know that European citizens flying from European cities will 100% be entitled to compensation. They know that possibly, Israelis traveling from European cities might be entitled to compensation.

But by taking this stance now - they know they can save 2.3MNIS (just a made up number since I do not know how much compensation they have issued - but be sure they know exactly how much compensation they have issued), and when the European courts force them to start issuing compensation based on an actual court case, they too will start paying compensation, but in 2018 they will have saved 2.3MNIS.

To Israeli VPs and CEOs it is a no-brainer - save money now and when an actual court order descends on them they too will start paying compensation.
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