One Percent Worth Over EUR 150 Million: GIVT Calculates How Delayed Flights Can Cost Airline Companies

WARSAW, Poland, May 14, 2019 /PRNewswire/ -- In April, 1.1% of flights from the European Union were cancelled or delayed for more than 3 hours. It doesn't seem like much, but if all passengers on scheduled flights alone claimed compensation, the airlines would have to pay around EUR 179 million. [GIVT Index for April 2019 and Q1 2019]

Since January, the percentage of disrupted scheduled flights meeting the prerequisites necessary to obtain compensation for passengers has been falling steadily in the European Union. Nevertheless, the value of compensation is not to be sneered at – according to the statistics of GIVT, a technology platform supporting passengers in the process of obtaining compensation for cancelled and delayed flights.

Every month it calculates the GIVT Index, which is based on flights which are cancelled or delayed for at least three hours, i.e. those that satisfy the prerequisites for the payment of compensation to passengers. The GIVT Index illustrates the scale of issues faced by airline passengers. In almost all cases determined by this index, passengers are entitled to financial compensation, among other things. The index is calculated on the basis of available internal data and external sources as a share of scheduled flights departing from a given country which are delayed over three hours or cancelled (the index of 10 means 1% of disrupted flights).

The GIVT Index for the European Union has been decreasing since January, which means a lower percentage of flights that may qualify for potential compensation. The average GIVT Index for the EU was 13.88 in Q1 2019 compared to 19.72 in Q1 2018. In April this year the index for the European Union was 11.22, which is 33% better than in January 2019. This year (the period from January until the end of April), based on Eurocontrol statistics, a total of 2.33 million flights were operated in the European Union, compared to 2.23 million in the same period of the previous year. In the long term, an increase in the value of the portfolio of potential passenger compensation may be expected.

The GIVT Index for the Top 10 EU Member States and Top 10 European airports (infographic)

GIVT Index in the rhythm of strikes...

Strikes are the factors that influence the GIVT Index the most. The Air France pilot strike of April last year had an impact on the high GIVT Index for Charles de Gaulle Airport in Paris, while in January 2019 the security staff strike led to the cancellation of more than 800 flights at German airports. As a result of this strike action, the January GIVT Index for Munich Airport exceeded 40 points and also affected the national index for Germany. A strike wave also rolled over Spain: in April 2018 the pilots of the Vueling airline, whose main base is Barcelona El Prat airport, were on strike. In the case of this airport, the April GIVT Index exceeded 20.

Due to the recent SAS pilots' strike, apart from the ten airports with the highest traffic, the airports of Stockholm and Oslo are also included in the GIVT ranking. The protest resulted in the cancellation of more than 4,000 flights in total, which resulted in a significant increase in the GIVT Index in April for both mentioned airports, which are the main hubs for SAS.

"From the point of view of the payment of potential compensation for delayed and cancelled flights, it is important whether employees of companies other than the airlines are on strike. If a strike is organised by the airline's employees, the airline is responsible for any resulting flight disruptions. The question of whether it was legally or illegally organised is irrelevant. There is an exception though: when the airline informs the passenger about the cancellation of the flight due to the planned strike at least 14 days before the planned trip. By contrast, flight disruptions caused by reasons beyond the control of the airline, such as bad weather, sudden technical problems or controller strikes, do not provide a sufficient basis for claiming compensation," Piotr Rybicki, Head of Customer Relations at GIVT stressed.

...and bad weather

The European TOP 10 airports that traditionally struggle with adverse weather conditions include the Amsterdam Schiphol and London Gatwick. For most of March, both in 2018 and 2019, the airport in Amsterdam struggled with poor visibility and strong winds. According to Eurocontrol, in March this year weather conditions were responsible for a total of 196,000 minutes of delay at the Amsterdam airport, i.e. more than 3,266 hours.

Methodology

The GIVT Index includes data regarding passenger regular flights departing from given airport or region/country. The list comprises the 10 largest departure airports in Europe with the largest number of passenger flights in the last 2 years, as well as the 10 individual countries from EU with the highest number of disrupted passenger flights in 1Q 2019 (disrupted means cancelled or delayed by more than 3 hours). The calculation of compensation is based on available external data and own analyses. The value given is based on the assumption that every injured party applies for compensation.

About GIVT

We seek compensation from air carriers for delayed or cancelled flights and in cases when air travellers are denied boarding. We act fast and efficiently, and we follow transparent rules. To make it easier for the passengers to obtain compensation, our focus is on strong technology, task automation systems, machine learning and advanced Big Data. GIVT has attracted experts with expertise in several sectors including aviation, finance, modern technology, consulting, digital marketing and legal services. givt.com

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SOURCE GIVT