Monday 30 June 2014

The Cost Of 'Delay-Repay' Promises

This month was marked by two interesting strategic moves towards compensating air and rail passengers experiencing delays.

While air passengers can expect to be able to claim compensation through the courts for flights delays that happened as long as 6 years ago, rail passengers are promised an automatic refund for journeys delayed by 2 minutes or more (3p per minute for delays between 2 and 29min - more afterwards).

Let's go back to reality.

Air passengers have almost zero chances of taking advantage of this regulatory 'improvement' as airlines struggle to track records even for day-old 'cases'. Which is why CAA advises disrupted passengers 'to lodge their claim as soon after the flight as possible'. No extra costs for airlines from this promise. Guaranteed!

As for train passengers, the reality check to be carried out by National Express c2c trains will tell if the multi-million investments in stations and additional trains will pay off and keep this joyful promise alive. Not to forget the potential burden of £100 million in compensation for delays that passengers in Britain miss out to claim each year.

Which of these promises would you trust more as a passenger?