Skip to content
CityAM
Main navigation
  • News
    • News
      • Latest Business News
      • Economics
      • Politics
      • Tech
      • Banking
      • FTSE 100 Live
      • Retail
      • Insurance
      • Legal
      • Property
      • Transport
      • Markets
    • From our partners
      • AON
      • Bayes Business School
      • Canada BIDs
      • Central London Alliance CIC
      • Destination City
      • Halkin
      • Olympia
      • Inside Saudi
      • Tottenham Hotspur Stadium
      • Santander X
      • YEAR SIX Dividend
    • Featured

      Franco Manca and Real Greek owner slumps to £14m loss as boss quits

      Franco Manca restaurant exterior showcasing the vibrant storefront and bustling street atmosphere in a busy city location.

      Submit a story

      Tell us your story.

      Submit
  • Opinion
  • Sport
    • Latest Sports News
      • Sport
      • Sport Business
    • From our partners
      • The Morning Briefing: SBS x CityAM
      • Aramco Team Series
      • LIV Golf
    • Featured

      Brentford in talks to host Shakhtar Donetsk Champions League fixtures

      Breaking news update with diverse business professionals discussing market trends in a modern conference room setting

      Submit a story

      Tell us your story.

      Submit
  • Life&Style
    • Life&Style
      • Life&Style
      • Toast the City Awards
      • The Magazine
      • Travel
      • Culture
      • Motoring
      • Wellness
      • The RED BULLETiN
      • Do it with Shared Ownership
      • Media Speak Hub
    • Featured

      New City venue rethinks competitive socialising… again

      Poolhouse at Square Mile City, Liverpool Street with modern architecture, reflecting vibrant urban development

      Submit a story

      Tell us your story.

      Submit
  • Investec
  • Events
  • Latest Paper
Monday 31 January 2022 12:01 am  |  Updated:  Sunday 30 January 2022 4:52 pm

Domestic air passengers set for more generous compensation scheme for delays

By: CityAM reporter

Add as a preferred source on Google
Grant Shapps has been accused of ducking meetings with Sadiq Khan

Neil Lancefield PA

More passengers will receive compensation for delayed domestic flights under plans announced by Transport Secretary Grant Shapps.

The Cabinet minister is proposing to make travellers entitled to payouts for flights within the UK which arrive at their destination more than one hour late.

The UK currently uses the European Union’s EU261 rule, which means passengers on flights shorter than 1,500km (932 miles) can claim £220 for delays of more than three hours, but nothing for shorter hold-ups.

As a result of having new powers due to Brexit, the Government is considering replacing this system with a model similar to the one used by rail and ferry operators, which links compensation amounts to the cost of travel.

Read more: Aviation chiefs call for ‘new normal’ now with testing ditched for fully-jabbed fliers

Under the Department for Transport’s (DfT) plan, which is under consultation, passengers would be entitled to:

– For a delay of more than one hour but less than two hours – 25% of the ticket price

– For a delay of more than two hours but less than three hours – 50% of the ticket price

– For a delay of more than three hours – 100% of the ticket price

The DfT did not specify which categories delays of exactly two and three hours would fall into.

Airlines avoid paying compensation for disruption caused by events outside their control, such as extreme weather, security alerts and restricted air traffic control operations.

Other proposals to protect passengers’ rights include making it mandatory for airlines operating in the UK to sign up to an alternative dispute resolution (ADR) scheme, which could help more people receive the refunds and compensation they are entitled to.

ADR programmes have helped thousands of passengers escalate complaints without going to court, but membership by carriers is voluntary.

The Government is also considering giving the Civil Aviation Authority (CAA) more power to enforce consumer laws through the ability to directly fine airlines for breaches.

Read more

UK law clears hurdle for airlines to ban unruly passengers from travelling

The Government’s ambition is for the UK to have 50 million international visitors a year by 2030.

Mr Shapps said: “People deserve a service that puts passengers first when things go wrong, so today I’ve launched proposals which aim to bolster airline consumer protections and rights.

“We’re making the most of our Brexit dividend with our new freedoms outside of the EU, and this review will help build a trustworthy, reputable sector.”

Tim Alderslade, chief executive of industry body Airlines UK, said carriers “work hard to ensure that the passenger experience is as smooth and enjoyable as possible”.

His organisation will respond to the consultation.

Read more: Brexit red tape: Risk of 17-mile queues at Dover due to new EU biometrics checks

CAA chief executive Richard Moriarty said the plans are a “clear indication of the need to enhance our enforcement powers, and bring us in line with other regulators”.

He added: “The proposals will improve passenger rights and equip the Civil Aviation Authority with the appropriate tools to act swiftly and effectively for the benefit of consumers.”

Rocio Concha, director of policy and advocacy at consumer group Which?, said trust in travel firms “plummeted” when the coronavirus pandemic began as some airlines “ignored their legal obligations and refused to pay refunds for cancelled flights”.

She went on: “This consultation is a welcome first step that must improve and strengthen consumer rights and protections so that complaints are dealt with fairly and promptly, and that passengers receive the money they are due quickly and without unnecessary hassle.

“It is also vital that the system is backed up by a regulator with the powers it needs to take swift and strong action against any company that breaks consumer law.”

Mr Shapps is also proposing to require airlines to pay the full cost of repairing or replacing wheelchairs and mobility scooters lost or damaged during domestic flights.

They are currently only obliged to pay passengers up to around £1,200 for damage to or loss of their belongings under the terms of the Montreal Convention, even though some wheelchairs cost more than £25,000.

Caroline Stickland, chief operating officer at disability group Transport for All, said preventing someone from using their wheelchair “can mean a total loss of independence”.

She went on: “Much more needs to be done to safeguard against this, including fair recourse to compensation for disabled passengers.

“We welcome these proposals and hope they mark the start of further positive changes in this area.”

Read more

EU airport chief: ‘I don’t know how we’ll cope’ with new border system

Drop off charges at UK airports have reached the highest level on record amid booming travel demand this summer.

Share this article

  • Facebook
  • X
  • LinkedIn
  • WhatsApp
  • Email

Similarly tagged content:

Sections

  • News

Categories

  • Business
  • Corporate News
  • Politics

Related Topics

  • Aviation

Trending Articles

  • Who could be Andy Burnham’s Chancellor? 

  • Reeves’ new tax charge on cash ISAs faces fierce industry backlash

  • As it happened: Stocks recover after markets rocked by tech-sell off; US claims ‘good foundations’ of Iran deal

  • Coca-Cola brings in restructuring lineup over failed Costa sale

  • As it happened: FTSE 100 finishes higher as US-Iran talks progress and Starmer resigns; Space X shares fall after bond sale

More from CityAM

  • UK law clears hurdle for airlines to ban unruly passengers from travelling

    Aviation
    The Government’s ambition is for the UK to have 50 million international visitors a year by 2030.
  • EU airport chief: ‘I don’t know how we’ll cope’ with new border system

    Transport & Infrastructure
    Drop off charges at UK airports have reached the highest level on record amid booming travel demand this summer.
  • Hopes rise for decision on Heathrow’s third runway plan

    Transport & Infrastructure
    Heathrow boss Thomas Woldbye is expected to lay the groundwork for what is the largest private investment programme in Heathrow's history.
  • Air fares to soar again if fuel costs stay high, British Airways chief warns

    Business
    British Airways (Photographer: Luke MacGregor/Bloomberg via Getty Images)
  • Heathrow slams regulator plans to ‘take UK backwards’ by slashing investment

    Transport & Infrastructure
    Heathrow Airport's expansion was estimated to cost up to £62bn as of last year.
  • Revolut pays compensation for waking customer up with push notifications

    Fintech
    Revolut app interface showcasing new features and design on a smartphone screen in a UK business environment.
  • Tartan Army cancel flights as Scotland eye a piece of World Cup history

    Sport Business
    Breaking news event concept with diverse people at a business conference discussing innovative strategies and global trends
  • ‘Bogus claim’: Ryanair hits back at watchdog probe into family seating policy

    Transport & Infrastructure
    Elon Musk and Ryanair CEO Michael O’Leary face off amid acquisition rumors in a business meeting setting

CityAM Canada — business, markets and opinion for Canadian readers.

Sections

  • Business
  • Markets
  • Tech
  • AI
  • Economics
  • Opinion
  • Cities

Company

  • About
  • Contact

Legal

  • Terms of Use
  • Privacy Policy
  • Cookie Policy
© 2026 CityAM Canada. All rights reserved.
Terms · Privacy · Cookies