CAA confirms plans for creation of "aviation ombudsman"

• Aviation ombudsman will help passengers resolve disputes with airlines
• CAA action to bring aviation into line with other sectors that have established ombudsman schemes
• Schemes will be fully independent with the power to make airlines pay compensation
• New standards will ensure complaints are dealt with quickly and fairly

Passengers involved in disputes with airlines will soon be able to escalate their case to an independent ombudsman, after the UK Civil Aviation Authority (CAA) today confirmed it is progressing plans to reform the way air travel complaints are handled.

Following a recent CAA consultation, the regulator plans to end its role as a complaint handler, handing over responsibility for air passenger complaints to “alternative dispute resolution” (ADR) schemes, such as the type of ombudsman-style bodies that are well established in other industries.

Today’s announcement represents a major step forward for consumers, with the CAA’s decision paving the way for them to get quick, fair and binding solutions to their disputes with airlines on issues such as flight delay compensation.

The findings of the scheme will be binding on airlines. This has not been true of the current CAA complaints process and some airlines have continued to refuse to pay compensation to consumers despite a CAA ruling, forcing consumers to take court action.

Iain Osborne, Group Director of Regulatory Policy at the CAA, said: “We are moving forward with these proposals to make sure consumers get the very best level of support when in dispute with an airline.

“It can’t be right that many air passengers have to go to court to get a concrete resolution to their complaint – especially when they can easily go to an independent ombudsman with an unresolved telecoms, energy or financial services problem. We are not prepared to let that situation continue and moving towards an ombudsman-style approach for aviation will make sure air passengers benefit from the quick, fair and certain approach to dispute resolution that has long been the norm in other major consumer markets.”

The proposals follow the European Directive on ADR, which requires schemes to be available to help settle any dispute that cannot be resolved though a business’s own complaint handling procedure. The CAA will be responsible for approving all ADR schemes in the sector and for ensuring that any organisations delivering them are independent and impartial, and that passengers have access to a simple, efficient and effective process at low or no upfront cost.

The CAA has already received strong industry interest in this approach and will now be working towards achieving full participation in ADR, with airlines making contractual commitments to join schemes. However, the CAA is prepared to seek future legislative changes to make ADR compulsory if necessary. Once the schemes are up and running airlines will be required to inform passengers about their participation.

The CAA is now welcoming applications from organisations interested in setting up ADR schemes ahead of implementation of the ADR Directive in July 2015. The CAA will continue to handle complaints about disability and mobility issues for any airlines that are not part of an ADR scheme.