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Compensation battle looms for BA | Compensation battle looms for BA |
(10 minutes later) | |
British Airways (BA) may be facing a bill for millions of euros after paying compensation to travellers affected by planned industrial action. | British Airways (BA) may be facing a bill for millions of euros after paying compensation to travellers affected by planned industrial action. |
Dutch firm EUClaim has said it plans to take BA to court in the Netherlands in order to win compensation for "all passengers" affected by the problems. | Dutch firm EUClaim has said it plans to take BA to court in the Netherlands in order to win compensation for "all passengers" affected by the problems. |
BA said it was surprised by the move, as there was a confidentiality clause and it had not admitted liability. | BA said it was surprised by the move, as there was a confidentiality clause and it had not admitted liability. |
The case stems from a planned walkout by BA cabin crew in January. | The case stems from a planned walkout by BA cabin crew in January. |
BA declined to comment on a report in the Times newspaper that it had paid the travellers £430 each for cancelling their flights. | BA declined to comment on a report in the Times newspaper that it had paid the travellers £430 each for cancelling their flights. |
The airlines' shares fell 14 pence, or 3.9%, to 345.25p in London during morning trading. | The airlines' shares fell 14 pence, or 3.9%, to 345.25p in London during morning trading. |
Damages paid | Damages paid |
January's industrial action was eventually called off and flights reinstated, but too late for many passengers to change the alternative travel plans that they had made. | January's industrial action was eventually called off and flights reinstated, but too late for many passengers to change the alternative travel plans that they had made. |
BA initially agreed to pay damages to three passengers who were stranded in Cape Town after their BA flight to Amsterdam was cancelled on 2 February as a result of the proposed strike. | BA initially agreed to pay damages to three passengers who were stranded in Cape Town after their BA flight to Amsterdam was cancelled on 2 February as a result of the proposed strike. |
We don't believe that under the EU DBC - denied boarding compensation - regulations we are liable British Airways class="" href="http://newsvote.bbc.co.uk/1/shared/fds/hi/business/market_data/shares/3/23417/one_month.stm">Check BA's shares | |
However, the threat of court action from EUClaim comes after BA agreed to compensate a further two passengers, but only if they agreed to a confidentiality clause, the Dutch company said. | |
EUClaim now wants to prove that all passengers affected by the industrial trouble at the start of the year are eligible for compensation. | EUClaim now wants to prove that all passengers affected by the industrial trouble at the start of the year are eligible for compensation. |
The company says that they have a case against BA under European Union regulations. | The company says that they have a case against BA under European Union regulations. |
It claims that under the legislation, an airline can only cancel a flight up to two weeks before departure without being responsible for compensating its passengers, unless it is the result of "extraordinary circumstances". | It claims that under the legislation, an airline can only cancel a flight up to two weeks before departure without being responsible for compensating its passengers, unless it is the result of "extraordinary circumstances". |
According to EUClaim chief executive Hendrik Noordehaven: "The problem for British Airways is that a strike caused by failing collective labour agreement negotiations cannot be seen as an extraordinary circumstance." | According to EUClaim chief executive Hendrik Noordehaven: "The problem for British Airways is that a strike caused by failing collective labour agreement negotiations cannot be seen as an extraordinary circumstance." |
"Particularly as in this instance, the BA cabin crew strike action had been publicly announced," he added. | "Particularly as in this instance, the BA cabin crew strike action had been publicly announced," he added. |
Not liable | Not liable |
BA argues that the threatened strike was an "extraordinary circumstance". | BA argues that the threatened strike was an "extraordinary circumstance". |
The airline said: "We don't believe that under the EU DBC - denied boarding compensation - regulations we are liable." | The airline said: "We don't believe that under the EU DBC - denied boarding compensation - regulations we are liable." |
It added that: "We have settled this claim for a handful of people with the Dutch company EUClaim without admitting liability. | It added that: "We have settled this claim for a handful of people with the Dutch company EUClaim without admitting liability. |
"As normal in these circumstances there is a confidentiality clause attached." | "As normal in these circumstances there is a confidentiality clause attached." |
EUClaim's Mr Noordehaven denied that the company had ever agreed to a confidentiality clause. | EUClaim's Mr Noordehaven denied that the company had ever agreed to a confidentiality clause. |