EU261/2004 - EJC Ratifies Downgrade Payment Calculation Decision

[serfty]

Started in another thread.

In June a decision was ratified in relation to "the ticket price" actually meant.

LINK

Basically, in relation to downgrade refunds, "Ticket price" is a pro-rata calculation based on proportion of the travel affected by the downgrade.

In assessing ticket price, the airlines are entitled to still take into account any +++ relevant to the downgraded cabin.

Thanks Serfty - have you got a link to the 'ticket price' issue. I can't seem to find it through google.

...
Also, in June a decision was ratified in relation to "the ticket price" actually meant ....

The Court of Justice of the European Union released a judgement on 22 June - the two names it is known by are: Steef Mennens v Emirates Direktion für Deutschland, Meenens versus Emirates.

In general terms (it can be more complicated) "75% of the ticket price" can be deemed to mean refund of:

0.75 [SUB]x[/SUB] ( ( (<distance downgraded> ÷ <total ticketed distance>) [SUB]x[/SUB] <total fare paid> ) - <government +++ for downgraded travel> ).

 

[serfty]

An example - assuming YQ / YR is treated as part of the +++, not the fare.

BA charge £1335 for a round trip LHR-LAX-LHR in Premium economy.

The £1335 is composed of £870 in fare and £465 for the round trip; of the £465, £329 is for LHR-LAX and £136 is for LAX-LHR. YQ is £114.50 each way.

Air passenger duty for PE on this route ex UK is £146, the reduced level for Economy is £73.

If downgraded on the outbound LHR-LAX, the government +++ for economy LHR-LAX is £256 - £114.50 = ~£141.50, so the calculation is:

75% x (((8780km ÷ 17560km) x £1335) - £141.50)

= 75% x ((0.5 x £1335) - £141.50)

= 75% x (£667.50 - £141.50)

= 75% x £526

= £394.50


If downgraded on the inbound LAX-LHR, the government +++ for economy LAX-LHR is £136 - £114.50 = ~£21.50, so the calculation is:

75% x (((8780km ÷ 17560km) x £1335) - £21.50)

= 75% x ((0.5 x £1335) - £21.50)

= 75% x (£667.50 - £21.50)

= 75% x £646

= £484.50