Resolving Individual Dispute Against Airlines:
The Role of Mediation and Passenger Rights under UK Law
Omar Khattab
International Associate
Introduction
Air travel disputes have become an increasingly frequent aspect of modern life, as flight cancellations, delays, and baggage mishandling continue to affect passengers worldwide. While the aviation sector is tightly regulated, many individuals find the process of seeking redress against airlines frustrating and complex.
In the United Kingdom, passengers have access to a combination of international treaties, domestic legislation, and alternative dispute resolution (ADR) mechanisms that safeguard their rights. Among these, mediation has emerged as one of the most efficient and fair ways to resolve disputes without the need for litigation.
Common Types of Airline Disputes
Individual disputes against airlines typically fall into several categories:
- Flight delays and cancellations — governed by Regulation (EC) No 261/2004, retained in UK law after Brexit.
- Denied boarding or downgrading without compensation.
- Lost, damaged, or delayed baggage — governed by the Montreal Convention 1999.
- Failure to provide assistance to disabled passengers under UK Civil Aviation Regulations.
- Refund, service, or compensation disputes following operational disruptions.
These issues usually involve modest sums (from £100 to £1,000), making full court proceedings disproportionate in cost and complexity.
The Legal and Regulatory Framework
(a) Civil Aviation Authority (CAA) and ADR Schemes
Under the Alternative Dispute Resolution for Consumer Disputes (Competent Authorities and Information) Regulations 2015, the Civil Aviation Authority (CAA) acts as the competent authority overseeing approved ADR bodies that handle unresolved consumer complaints.
The main ADR providers are:
- AviationADR
- CEDR (Centre for Effective Dispute Resolution)
If an airline’s internal complaints process fails to resolve the issue, passengers can escalate their complaint to one of these ADR schemes — usually free of charge.
(b) Small Claims Track
If ADR or mediation is unsuccessful, passengers can bring a claim before the County Court under the small claims track (for claims under £10,000). However, this process is slower, more formal, and incurs filing fees — hence the growing emphasis on mediation.
The Montreal Convention 1999: Baggage Loss, Damage, and Delay
The Montreal Convention 1999, implemented in the UK through the Carriage by Air Acts (Implementation of the Montreal Convention 1999) Order 2002 (SI 2002/263), provides a unified framework for airline liability concerning passengers, baggage, and cargo in international carriage.
(a) Airline Liability
Under Article 17(2), airlines are liable for damage sustained in the event of destruction, loss, or damage to checked baggage, provided the event occurred while the baggage was in the airline’s custody.
Article 19 extends liability to damage caused by delay in the carriage of passengers or baggage.
This creates a strict liability regime — the airline is presumed liable unless it can prove it took all reasonable measures to avoid the loss or delay.
(b) Types of Baggage Claims
- Lost Baggage – When baggage has not arrived within 21 days after the flight, it is presumed lost (Article 17(3)).
- Damaged Baggage – Compensation may be claimed for repair or replacement, except where the damage results from the baggage’s own defect.
- Delayed Baggage – Passengers may claim for reasonable expenses incurred (e.g., clothing or toiletries), supported by receipts.
(c) Compensation Limits
Liability is capped at 1,288 Special Drawing Rights (SDRs) per passenger — roughly £1,300–£1,400, depending on currency fluctuations.
This limit applies per passenger, not per item, unless a special declaration of interest is made at check-in with payment of an additional fee (Article 22(2)).
(d) Notice and Time Limits
| Type of Claim | Written Notice Required | Time Limit for Legal Action |
| Damage to baggage | Within 7 days of receipt | 2 years from arrival date |
| Delay in baggage | Within 21 days of receipt | 2 years |
| Loss of baggage | No notice required | 2 years |
Missing these deadlines can bar recovery, even if liability is clear.
(e) Defenses for Airlines
Airlines can escape liability if they prove:
- They took all reasonable measures to avoid the damage (Article 19), or
- The damage resulted from passenger negligence (e.g., packing fragile or valuable items in checked baggage, contrary to terms of carriage).
(f) Key Case Law
- Sidhu v British Airways plc [1997] AC 430 (HL) — The Montreal (and Warsaw) Conventions provide the exclusive remedy for international air travel claims.
- Deep Vein Thrombosis Group Litigation [2005] UKHL 72 — Reaffirmed the exclusivity of the Convention.
- Stott v Thomas Cook Tour Operators Ltd [2014] UKSC 15 — The Convention limits recovery to its specified categories, even where other UK laws (e.g. equality law) might otherwise apply.
Thus, the Montreal Convention provides the sole legal basis for baggage-related claims in international air travel.
The Importance of Mediation in Airline Disputes
Mediation offers an efficient and fair means of resolving disputes between airlines and passengers, bridging the gap between formal litigation and informal complaint handling.
Advantages of Mediation
- Cost-Effective: Typically, free or low-cost compared with court action.
- Time-Saving: Cases are resolved in weeks rather than months or years.
- Confidential: Protects both parties’ reputations.
- Flexible Remedies: Enables creative solutions — vouchers, upgrades, apologies — unavailable through courts.
- Encouraged by Courts: Under Civil Procedure Rules (CPR) Part 1, courts expect parties to attempt settlement before trial. Failure to do so can attract cost sanctions (see Halsey v Milton Keynes General NHS Trust [2004] EWCA Civ 576).
The Regulatory and Policy Importance
The UK government and the Civil Aviation Authority view mediation and ADR as central to consumer protection.
Benefits include:
- Accessible redress for passengers without legal expertise.
- Reduced burden on courts by resolving minor consumer disputes early.
- Improved accountability and transparency for airlines.
The Consumer Rights Act 2015 and ADR Regulations 2015 embed these principles into UK consumer law, promoting fair and efficient outcomes.
Challenges and Reform
Despite progress, challenges remain:
- Some airlines are not members of approved ADR schemes, especially smaller or non-UK carriers.
- Low consumer awareness — many passengers are unaware of their ADR rights.
- The need for a single aviation ombudsman — an idea under ongoing policy discussion by the CAA and the Department for Transport.
Future reforms may aim to mandate ADR participation for all airlines serving the UK, ensuring greater consistency and fairness.
Practical Guidance for Passengers
- Report issues immediately at the airport (obtain a Property Irregularity Report – PIR).
- Keep all receipts for replacement purchases.
- Submit written claims to the airline within required time limits.
- Escalate unresolved cases to an approved ADR body.
- Retain documentation (tickets, baggage tags, correspondence).
Being organized and acting promptly increases the chance of successful compensation.
Conclusion
Individual disputes against airlines — whether for flight delays, cancellations, or mishandled baggage — are an inevitable by-product of global air travel. The UK’s legal framework, combining international conventions, domestic consumer protections, and alternative dispute resolution mechanisms, provides passengers with clear and enforceable rights.
Mediation stands out as the most practical and equitable tool within this framework: it delivers swift, cost-effective outcomes while preserving fairness and consumer confidence. Together with the Montreal Convention and UK regulatory oversight, mediation ensures that airline disputes are resolved in a manner that upholds both consumer justice and industry accountability.
Key References
- Montreal Convention 1999 (implemented via SI 2002/263)
- Regulation (EC) No 261/2004 (retained EU law)
- Alternative Dispute Resolution Regulations 2015
- Consumer Rights Act 2015
- Civil Aviation Authority (CAA) Guidance
- Sidhu v British Airways plc [1997] AC 430
- Halsey v Milton Keynes General NHS Trust [2004] EWCA Civ 576
- Stott v Thomas Cook Tour Operators Ltd [2014] UKSC 15
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