ENERGY / TRANSPORT - Jet fuel / Aviation guidance: Q&A
No, it's good morning. It's not a Eurobarometer. It's OK.
You can go on, so we changed topic. Great. Thank you.
It's on the guidelines for the transport sector, for the aviation sector.
I'm reading that it seems, that, the Commission says that charging additional fees retroactively,
such as fuel surcharge surcharges is not allowed.
As there are some reports that some airlines are doing this already and I would like to,
to understand if these guidelines are binding and how the, the Commission hopes to enforce this, this provision. Thank you very much.
To clarify, the guidelines explain the existing legislation, so the provisions on surcharges are already included in the legislation,
and this guideline is not bringing anything new, it's just merely explaining how to interpret these rules in the current situation.
So under our air services regulation,
Anyone selling air tickets must always display the final price that the passenger will pay.
This includes all unavoidable and foreseeable taxes, fees and charges.
At present, Meaning at the moment, and as of several weeks,
high fuel prices are entirely foreseeable.
So airlines may adapt their published fares to the situation.
But adding a fuel surcharge to a ticket after it has been bought cannot be justified.
If airlines adjust the price of a ticket after booking has been made,
this can raise issues under the EU's unfair commercial practises.
And these directives that govern this particular this particular issue.
Are enforced by national authorities and on top of that, they require a case by case assessment.
But as broadly as it says in the guidelines.
High fuel prices are currently entirely foreseeable, and the consumer, the passenger,
the customer needs to see the final price of the ticket at the time of paying it.
Thanks, a question on this, go ahead if it's on this. Hi, thank you. With the press and La Martin open.
We've seen several airlines cancelling lots of,
routes now because they apparently become economically unfeasible with the cost of, of fuel.
Can you explain to us I mean, you all assume, and we all assume that there will be kerosene in summer,
but it will likely be much more expensive than now.
What happens if an airline decides that a flight doesn't make economic sense anymore and it simply cancels the flight in summer? What's the, what's the consumer's situation there?
You book a flight now for your holidays, it gets cancelled. What happens then?
Would it be force majeure if of course if there's no kerosene, well then they can't fly,
but is there a threshold for you where you say, Up to this point, it's understandable they do it.
And here it becomes a practise that is against consumers' rights.
OK, there are several elements in, in your question. So the one is, airlines cancelling flights.
This is, these are decisions for the airlines to make.
They run a commercial operation, they run a business, so it is for them to decide what makes good business and what doesn't.
So cancelling flights is entirely up to the airlines.
And currently, what we are seeing in the current situation, all the cancellations that have been announced for the time being are due to jet fuel prices,
not due to shortages, and as I said in my previous reply,
high jet fuel prices are entirely foreseeable for the time being. It is still the right.
The sovereign right, the absolute right for any business to decide how they conduct business,
but then we get to the point of if these cancellations occur, where does it leave the passengers?
There is a threshold how the airlines have to inform passengers. I think it's 2 weeks.
It's also in the guidelines that they have to inform the passenger of cancelled flights,
and there needs to be rerouting,
mainly rerouting or other options made available for the passenger.
But the passenger needs to know well in advance.
And on the extraordinary circumstances that you referred to, or For Majeure, this obviously relates to passenger rights.
So the main aim of EU air passenger rights is to get the passenger from point A to point B,
while providing information, care, and assistance. This is the main point.
Financial compensation is not the main purpose of passenger rights.
It is taking care that the passenger gets to go where the passenger is supposed to be going and wants to go.
So our air passenger rights continue to apply in full.
In any event, airlines are obliged to assist passengers.
So in case of cancellation, passengers are entitled to reimbursement, rerouting or return. And assistance at the airport.
And compensation for last minute cancellations, for last minute cancellations.
So airlines are only exempt from paying compensation.
If they can prove That the cancellation was caused by extraordinary circumstances such as No fuel.
And we do not, to repeat, we do not consider high fuel prices to be an extraordinary circumstance. Thanks, Anna-Kaisa, Nick on this.
If it's on this, go ahead, and then Susana from remote.
Thank you so much, Nicholas Hanley for Euractive on the guidance.
The guidance refers to the use of jet A as a temporary and pragmatic measure.
EASA in a bulletin today pointed out significant operational airworthiness and human factor risks.
So does that mean we'll get to fly this summer, but it will be somewhat less safe.
And secondly, my question would be, given the,
does the Commission already have a view on how much US produced jet fuel the EU is importing?
We're seeing record numbers of inflows, and I understand that there's a jet fuel observatory in the making.
To your first question, whether this in any way risks passenger safety, absolutely not.
European aircraft already use Type A jet fuel,
which is the one that is used in the United States when a plane leaves or departs from Europe on transatlantic flights.
It lands somewhere in the United States, for example, they need to refuel. So they are already using type A.
When the plane returns to Europe, so there's no safety concern in this.
And then you asked about how much the US produces jet fuel.
This figure I do not have at hand, but I will educate myself on that. Thanks.
Let's go to Susana, if it's still on the guidelines, and then Thomás from remote. Thank you.
Still on these extraordinary circumstances, so if I understand correctly what you just said,
for the time being, the airline companies,
they cannot argue or they cannot escape last minute cancellations. They cannot escape compensation.
But the guidelines guidelines also say that the Commission sees the commission's view is that a local fuel shortage preventing the operation of a flight may be considered an extraordinary circumstance circumstance.
So my question is, in case such a shortage shortage happens.
Happens, Will the Commission say that from now on,
The airlines can use this argument.
Or it's going to be for the airlines to say, well,
this is this is due to a local fuel shortage or something that is not extraordinary circumstances as high prices,
because this is important to understand. I Exactly.
So, they, there is a difference between high jet fuel prices. And a shortage of fuel.
High fuel prices, in our view, cannot be considered an extraordinary circumstance.
It is for the airlines to manage price volatility.
Generally speaking, And for the time being, and as I said in my previous reply,
this is entirely foreseeable at the moment.
High jet fuel prices, it is very clear.
But then if we get into a situation.
Of jet fuel shortages which we are and for the time being at this moment we are not seeing any concrete evidence of jet fuel shortages. So if it gets to the point.
That airport or airline is experiencing jet fuel shortage that can, in our opinion, In our view,
it can be considered an extraordinary circumstance,
but this is all about the interpretation of current EU law that is in force.
But this guideline is just explaining what can and cannot be at the for the time being,
considered as extraordinary circumstances. High prices no. No fuel, yes. Thank you, Anna-Kaisa.
Let's go to Tomaso and then I come back to the press room. Yes, hi, thank you for the floor.
I also have a question about the US made, jet A.
In particular, the EASA in this, documents basically say that the jet fuel rates, the fact that jet fuel rates are, interchangeable is,
is a wrong assumption and,
sets out a number of technical requirements to be respected in order to introduce jet A in the,
European aviation.
So I was wondering how is the Commission going to make sure that all these requirements are respected,
and you say basically that this, guidance don't change, a comma of the EU regulation.
Are you already thinking about a follow-up with potential legislative proposals? Thank you.
The safety aspects of jet fuels is for EASA, for the safety authority,
and it is for them to oversee as well that that airlines do comply with their recommendations.
They are the ones issuing this recommendation and the specifics,
and they are the ones who are giving the specifics and the details of the various kinds of fuels. So for us, for the time being.
At the moment, in the situation where we are now,
our current existing legislation that is in force provides for flexibilities for the sector.
To sustain the situation as it is now, but of course no one knows.
No one knows how long this will continue and how long it will take the markets.
To absorb the situation, so obviously we work very, very closely with airlines.
We have weekly meetings on oil coordination where industry is also represented.
We have extremely close cooperation to have a full understanding at all times where we are.
So to your question whether we are now preparing some new measures or something.
We need to have this coordination first to be able to have a full understanding of what might be needed,
and then we will take action as is required. Go ahead. And then mirror.
Hello Maria Sara FC newspaper and Star TV Greece.
I have a question on, back on the cancellations for extraordinary circumstances.
You said Anna-Kaisa just now that you have weekly meetings with the companies, etc. And close cooperation.
But is there,
does the Commission have an email er an estimation of how much fuel have the companies?
I'm asking this to ask, to go to the next question.
Which is, if now for example a company cancels a flight last minute and says that it is because of the shortage of of fuel,
would you, would the Commission accept this excuse?
Can you explain to us how what is in the justification that the company needs to give to the commissioner for this cancellation?
And the final question, are you planning to, to make a new assessment of the situation and when do you expect this to be because,
the situation in the Middle East is evolving and anytime you can have new indications for the shortages. Thank you.
I'll start with your first question, which is how do we know how much fuels the companies have?
Oil markets are unregulated,
so there is no no existing standard process.
For collecting data in an extraordinary situation where we are now in a crisis situation where we are now,
so there is a lack of transparency overall on the evolution of stocks from different actors,
especially in oil products, and obviously jet fuels are an oil product.
The current geopolitical situation, which changes every day, is not making this much easier.
But at the same time,
we do have a full overview of where our Member States are as regards fuel.
As I said, we are meeting on a weekly basis with our Member States,
with the International Energy Agency, as well as the industry to take stock.
Regarding commercial stocks, because you are referring when you asked how much do the companies have,
then in that case we are talking about commercial stocks of fuel.
So we received this information from the airlines and other relevant actors, and the airlines are not obliged to share this information to us,
but they are taking part in our overall coordination effort, given the current situation.
So it is not for the Commission to make any announcements of how much jet fuels our companies have.
We have to respect the commercial confidentiality of these contracts.
We do not have access to individual contracts for companies buying jet fuels.
So and then there's the other question of the strategic stocks, but that's a separate thing you asked about the companies. On the shortage of fuel.
This is of course, and this is what it says in the guidance as well, obviously there has to be proof.
And as regards assessment,
we are continuously assessing the situation and we will take action as soon as it looks like that there are changes. That further action is required.
This is also stated in the guidelines, but we continuously, continuously monitor the situation very,
very closely with the industry as well as with the member states. Thank you, Anna-Kaisa. Are there other questions on the guidelines?
I see a couple of hands raised from remote, but I understand it's different topics. It's not on the guidelines. No, is it on the guidelines? Yeah, then go ahead. It seems so. Oui bonjour Adrien Barbón. Hello Adrien de Calon AFP News Agency. Just a question about type A fuel.
Do you recommend a massive use of this?
Kind of fuel considering the situation here after the Middle East crisis.
So sorry, what was that, do we recommend?
Do you recommend a massive use of this kind of fuel considering the crisis in the Middle East?
This is not us recommending airlines what they should be using,
this is us giving guidelines on how it would be possible for them to increase the use of Type A. On the guidelines, OK, go ahead then. Just a question for understanding.
You said you're sitting with the industry, you're sitting with the with the air companies,
but they are not obliged to share the information about jet fuel with you.
How does the Commission get a general overview if these information are private information? Thank you.
What I said was that the airlines and companies are generally speaking not obliged.
To share this kind of contractual information with us, but, as I said, they are still participating.
We are getting information from them in the current situation.
Otherwise it will be impossible for us to have.
We do have an overview, especially on the strategic stock that Member States keep, and then the commercial stock,
which, by definition is for the airlines and for the operators to manage. You have a follow-up. Go ahead.
So they're, they're sharing the information, if I understood you correctly, they share the information on a voluntary basis. They're not obliged to, but they do.
Correct Still on the guidelines, not the case. Thank you. Other questions for us today. Let's go to Chandor.
But on the guidelines, sorry, apologies, you're right. Thank you for helping me chair. Still for Anna-Kaisa, let's go to Nicholas.