Codification of Passenger Rights Cost of Non-Europe Report
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Codification of Passenger Rights Cost of Non-Europe Report STUDY EPRS | European Parliamentary Research Service Author: Monika Nogaj European Added Value Unit July 2015 – PE 536.367 Codification of Passenger Rights Cost of Non-Europe Report Study Abstract This report analyses the costs for citizens and business of the absence of a consolidated framework for Passenger Rights as well as the feasibility and the merits of such a consolidation in a single legislative instrument. The study analyses the current state of play on Passenger Rights in the four modes of transport (rail, road, water and air transport), and points to a number of regulatory and practical gaps and inconsistencies, which result in passengers not being equally protected across the various transport modes. The lack of a consolidated and consistent framework weakens the effective enforcement of passenger rights, affects the quality of service and creates barriers for seamless travel. The costs of these shortcomings for transport users and the whole society amount to at least 355 million euro annually. Although requiring a complex legislative effort, establishing a single EU framework for passenger rights in the form of an EU Codex, combining amendment of the existing regulations and consolidation of rules, would present the highest added value in tackling the current deficiencies. A Common Frame of Reference could be a first, intermediary, step to such a consistent and harmonised revision of passenger rights. EPRS | European Parliamentary Research Service Codification of Passenger Rights AUTHOR Monika Nogaj, European Added Value Unit ABOUT THE PUBLISHER This paper has been drawn up by the European Added Value Unit of the Directorate for Impact Assessment and European Added Value, within the Directorate–General for Parliamentary Research Services of the Secretariat of the European Parliament. To contact the Unit, please email [email protected] LANGUAGE VERSIONS Original: EN Translations: DE, FR DISCLAIMER The content of this document is the sole responsibility of the author and any opinions expressed therein do not necessarily represent the official position of the European Parliament. It is addressed to the Members and staff of the EP for their parliamentary work. Reproduction and translation for non-commercial purposes are authorised, provided the source is acknowledged and the European Parliament is given prior notice and sent a copy. This document is available on the internet at: www.europarl.eu/thinktank Manuscript completed in March 2015. Brussels © European Union, 2015. PE 536.367 ISBN: 978-92-823-6393-5 DOI: 10.2861/42606 QA-02-14-232-EN-N PE 536.367 1 Cost of Non-Europe Report On 16 December 2013, the coordinators of the Committee on Transport and Tourism of the European Parliament requested the preparation of a Cost of Non-Europe Report on the Codification of Passenger Rights. Cost of Non-Europe reports are designed to study the possibilities for gains and/or the realisation of a ‘public good’ through common action at EU level in specific policy areas and sectors. They attempt to identify areas that are expected to benefit most from deeper EU integration, in other words where the EU added value is potentially significant. The aim of this report is to determine the benefits that would stem from establishing a consolidated framework for passenger rights. In particular, it analyses the question of 'gaps' and inconsistencies in the current passenger right legislation, and the cost - expressed when possible in quantitative terms - to citizens and the society of not remedying them. This Cost of Non-Europe report also looks at the costs and benefits of the main codification options. This paper has been drawn up by the European Added Value Unit of the Directorate for Impact Assessment and European Added Value, within the European Parliament’s Directorate-General for Parliamentary Research Services. This report is based on the main findings of the external study commissioned for the purpose and provided by Milieu Ltd. PE 536.367 2 Codification of Passenger Rights Contents Executive summary ........................................................................................................ 4 Introduction ..................................................................................................................... 6 Main concerns with the current state of passenger rights .......................................... 7 List of tables Table 1: Overview of main problems with regard to the 10 core passenger rights 8 Table 2: The six areas and the relevant passenger rights 13 Table 3: A summary of Cost of non-Europe estimates/ Impacts of the lack of consolidated framework for passenger rights 17 Table 4: Summary of main codification options and their merits 18 List of boxes Box 1: The right to assistance in practice 7 Box 2: Passengers and inter-modal travel 11 ANNEX I: The possibiliity and feasibility of a codification of Passenger Rights 21 by Levent Altan, Paola Banfi, Linda De Keyser, Agnieszka Markowska, Nathalie Meurens and Marilena Verbari, Milieu Ltd. PE 536.367 3 Cost of Non-Europe Report Executive summary Although the EU has secured an overall high level of protection of passenger rights, a number of regulatory and practical gaps and inconsistencies nevertheless prevent users from fully enjoying their rights. These lacunae, and especially the lack of clarity of existing passenger rights across the modes of transport result in discrepancies in the protection of passengers and create barriers for seamless travel concerning all different modes of transport. The lack of a consolidated and consistent framework for passenger rights weakens their overall transparency and enforcement, affects the quality of service and can be an obstacle preventing passengers from fully enjoying the benefits of inter-modality. As such, it entails real costs for transport users and the whole society, which have been estimated to amount to at least 355 million euros annually. Main costs identified Estimate Area (million Quantitative assessment Qualitative assessment euro) Transparency Time lost by the passengers while Difficulties for passengers to 130 searching for adequate understand and enforce their rights information on the final price of ticket and other services included Annoyance and stress resulting from lack of transparency and unfair business practices Quality of Cost of not having assistance Limited accessibility for and 18 service during disruption assistance of PRMs Economic impact on companies in terms of a lower demand from PRMs Enforcement Value of time lost in complex and Weakened ability of passengers 69 inefficient complaint handling to claim their rights procedures for passengers, and Insufficient incentives for carriers' and NEBs' staff carriers to fully comply with passenger rights Intermodality Positive gains of having seamless Lower risk of missed 138 intermodal travel: connections for passengers Time-savings due to easier and Environmental benefits due to faster changes between transport replacement of air travel with rail modes Integrated ticketing and More smooth and seamless combined check-in procedures transport contributes to the fulfillment of broader EU objectives in the Single Transport Market TOTAL 355 PE 536.367 4 Codification of Passenger Rights The EU is in a position to address these problems by establishing a single EU framework for passenger rights. A combined approach which includes amendment of the existing regulations and consolidation of rules would present the highest added value in tackling the current lack of transparency and the inequality of passenger rights across the transport modes. Establishing a Common Frame of Reference as a first step, as proposed by the European Parliament1, would pave the way for a consistent and harmonised revision of passenger rights. 1 Point 11 of European Parliament, ‘European Parliament resolution of 23 October 2012 on passenger rights in all transport modes (2012/2067 (INI))’, 23 October 2012. PE 536.367 5 Cost of Non-Europe Report Introduction The transport sector is regularly the number one source of cross-border complaints. In 2012, for instance, one third of complaints to the European Consumer Centres Network were related to transport2. In travel and tourism where transportation is key component, more than half of all complaints relate to transport services. This data suggests that passenger rights are both a vital element of a well-functioning Single Market, but as well an important issue of concern, since they are often not respected to the letter. This is notwithstanding the fact that an important part of the common transport policy is centred on efforts to codify and standardise the rights of passengers across the European Union. Over the last decade, the EU has adopted legislative measures to protect passengers across the four modes of transport, air, rail, waterborne and road. But the fact that those sectors were adopted at different timeframes and have different scope and terminology, result in a differentiation in the level of protection offered across the transport modes. Besides, it creates uncertainty and confusion both for passengers and carriers and subsequently generates additional costs and societal burdens. The idea of a single EU Framework covering passenger rights for all modes of transport has been regularly discussed in recent years. The European Parliament Bach report on passenger rights in all transport modes affirmed that a “holistic approach