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  #41  
Old 14-07-2019, 11:59 AM
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Originally Posted by Aki Aki Aki View Post
Airlines must be insured, so I'm not really sure how out of pocket they are against the typical compensation claims. The ones that use the insurance to proactively look after their passengers are the ones who will be the most successful. Its all about the client experience, especially if flying Business or First Class, as that is where airlines make their money.
Not sure they will be insured against delay compensation
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  #42  
Old 14-07-2019, 12:01 PM
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Originally Posted by Aki Aki Aki View Post
Airlines must be insured, so I'm not really sure how out of pocket they are against the typical compensation claims. The ones that use the insurance to proactively look after their passengers are the ones who will be the most successful. Its all about the client experience, especially if flying Business or First Class, as that is where airlines make their money.
How long can airlines keep claiming against their insurance policies before the payouts far exceed the premiums, so either the premiums go up massively or the insurance companies just say they're not going to provide coverage anymore? Insurance companies aren't charities, they have to bring in more in premium than they pay out overall in a given sector. But this isn't like where we all insure our house for a small fee to pay for the few unfortunate people whose house burns down and everyone's a winner. In this scenario, everyone's house burns down. Airlines can't avoid having to pay compensation in the situation bigend1 outlined.

If the ticket price is £100 (margin of say £25 at best) and the compensation is £500, that £475 has to come from somewhere. You've got to successfully transport another 19 passengers, without even taking into account the costs involved, in order to pay compensation to one.

Last edited by WorthingEagle; 14-07-2019 at 12:05 PM.
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  #43  
Old 14-07-2019, 12:16 PM
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BA only offered us a refund for a cancelled flight and refused to pay for the alternative travel cost we incurred, we put in a claim with the ADR and BA settled, may be worth looking into if Jet2 donít pay up. CAA.co.uk
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  #44  
Old 14-07-2019, 12:25 PM
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Originally Posted by Aki Aki Aki View Post
Airlines must be insured, so I'm not really sure how out of pocket they are against the typical compensation claims. The ones that use the insurance to proactively look after their passengers are the ones who will be the most successful. Its all about the client experience, especially if flying Business or First Class, as that is where airlines make their money.
Dont know of any airlines insured against this compensation ruling, eu261.

What i know is major airlines pay out millions a month. Thats not exaggeration. A major UK airline I know quite well is top for punctuality or near the top depending on which awarding body spends 1m a month on eu261. It's far from the top dog in size who presumably spend more.

Even if there was insurance, which I'm sure there isn't imagine the premiums to make that policy viable!

To expand on Worthing's good example of putting numbers to it they fly around 800,000 passengers a month I believe.

Considering lead fairs are sold at less than cost... that compensation is probably taking between 25-50% of all the revenue after taxes and charges per seat sold. Thats before even the cost of running the airline and fuel etc...

Educated guess on the figures as I dont have them but the real numbers are incredible. Thats why its unsustainable.. short term gain in a bit of cash but long term loss of redundancy in flying programs and ultimately loss of many routes and flight times and indeed entire airlines as the cash runs out
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  #45  
Old 14-07-2019, 12:29 PM
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Originally Posted by Boro-Eagle View Post
BA only offered us a refund for a cancelled flight and refused to pay for the alternative travel cost we incurred, we put in a claim with the ADR and BA settled, may be worth looking into if Jet2 donít pay up. CAA.co.uk
Not sure how they can refuse to be honest. Itís law
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  #46  
Old 14-07-2019, 12:29 PM
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Originally Posted by bigend1 View Post
Dont know of any airlines insured against this compensation ruling, eu261.

What i know is major airlines pay out millions a month. Thats not exaggeration. A major UK airline I know quite well is top for punctuality or near the top depending on which awarding body spends 1m a month on eu261. It's far from the top dog in size who presumably spend more.

Even if there was insurance, which I'm sure there isn't imagine the premiums to make that policy viable!

To expand on Worthing's good example of putting numbers to it they fly around 800,000 passengers a month I believe.

Considering lead fairs are sold at less than cost... that compensation is probably taking between 25-50% of all the revenue after taxes and charges per seat sold. Thats before even the cost of running the airline and fuel etc...

Educated guess on the figures as I dont have them but the real numbers are incredible. Thats why its unsustainable.. short term gain in a bit of cash but long term loss of redundancy in flying programs and ultimately loss of many routes and flight times and indeed entire airlines as the cash runs out
Yes, thereís absolutely no way they can insure against delay compo
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  #47  
Old 14-07-2019, 12:43 PM
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Yes, thereís absolutely no way they can insure against delay compo
Nope

As for your earlier question post Brexit?

Hope so but far from confident. I hope... they realise the importance to infrastructure if domestic airlines, especially domestic spending etc and the effect on the wider economy if UK airlines collapse. Spending within the UK will become essential post Brexit and removing the lifeline of affordable travel would cost the economy billions. I'd hope they will cut or even abolish air passneger duty in the UK and remove or refine the eu261 type compo. Remove the advantage foreign airlines have over UK ones and support UK industry..

I fear they will try after the damage is done and a few airlines will survive, sweep up the cream from the others ultimately charging more for less choice.

We'll see
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