The Supreme Court has scotched travel industry hopes of avoiding a huge payout over flight delays.
The court refused applications by Jet2.com and Thomson to appeal earlier decisions that found them liable to pay compensation (Jet2.com Ltd v Huzar [2014] EWCA Civ 791 and Thomson Airways Ltd v Dawson [2014] EWCA Civ 845).
The result could cost the airlines billions of pounds, according to David Bott, senior partner at Bott & Co, which acted for the Jet2.com passengers. He said an estimated 2.36 million passengers per year in England and Wales could benefit from Jet2.com, equivalent to about £876m in compensation, while Thomson had opened up an estimated £3.89bn in historic flight compensation.
Jet2.com stemmed from a 27-hour delay on a flight from Malaga to Manchester in 2011. Thomson resulted from a six and a half hour delay on Christmas Day 2006 at Gatwick Airport.
Bott, whose firm has thousands of clients with claims on hold, said: “The Supreme Court’s decision has provided total clarity in the law, which will benefit both airlines and passengers going forward.”
In Jet2.com the Court of Appeal held that an unforeseeable technical problem (a wiring defect) did not amount to “extraordinary circumstances” for the purposes of Regulation (EC) No. 261/2004. Thomson centred on the issue of whether the relevant limitation period was two years or six years. The Court of Appeal held six years.
A Thomson Airways spokesperson says: “We are surprised and disappointed to note the decision of the Supreme Court as we believe our position is sound in law.”
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