3rd Nov 2014 08:59
LONDON (Alliance News) - Dart Group PLC Monday said it has set aside GBP17 million in the current financial year to cover potential historical claims related to a claim for compensation after one of its Jet2.com aircraft was delayed by a technical hitch, and it is facing costs of between GBP3 million and GBP5 million a year in future years.
The news comes after the Supreme Court rejected Jet2.com's appeal of an earlier decision made by the Court of Appeal.
One customer, Ronald Huzar, made a claim for comensation under EU Regulation 261 in respect of a Jet2.com flight which was delayed due to a technical defect. Jet2.com maintained that the technical defect was an "extraordinary circumstance" which relieved it of the obligation to pay compensation under guidance published by the UK Civil Aviation Authority and other European national enforcement bodies.
However, the Court of Appeal ruled in June that the technical defect was not an extraordinary circumstance and that compensation is payable. Jet2.com appealed that decision to the Supreme Court, but has had the appeal turned down.
"Dart will be making a provision of GBP17 million in its current financial year in order to cover potential historical claims arising from the Supreme Court's decision. Going forward, the board estimates that the legislation may cost the group a further GBP3 million to GBP5 million per annum. The board is currently further reviewing its options to mitigate the future financial impact on its air travel operations," it said in a short statement.
Dart Group shares were down 12.7% at 227.90 pence early Monday, one of the worst-performing stocks on the AIM All-Share index.
By Steve McGrath; [email protected]; @stevemcgrath1
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