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Tuesday, February 22, 2005
Not so easyjet

The Adam Smith Institute has an almost poignant account of the sort of thing that happens when Brussels decides to stick its nose in. Its latest crazy directive will force huge fixed compensation claims on airlines who cancel flights, irrespective of the reason. Easyjet cannot reasonably be held responsible if your £10 flight to Paris is delayed by the weather, but it will now be forced to pay out compensation of more than seventeen times as much for every passenger who faces this situation.

As anyone who understands economic behaviour could have told the EU, the result will not be a wave of on time flights and happier, wealthier passengers, but a much higher ticket price to cover the costs of this compensation when it must be paid. The wonderfully inexpensive flights so many of us have all enjoyed - thanks only to daring innovators of the sort governments always seek to control and regulate - could soon come to an end.

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