ELMS: Easing the financial pressure of EC261

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  • August 28, 2015
Departure Board

The aviation industry is continuously shaped by market forces. The higher cost of fuel, growing competition among airlines, increasing maintenance costs and management and expensive legal claims are all amounting to huge financial pressure on the industry’s already squeezed margins.

Over the last 5 years the industry has witnessed a steady increase in legal claims due to the European Legislation known as EC261.

EC261 gives passengers the right to compensation as a result of flight cancellation, long flight delays and denied boarding. This applies to any flight departing from an EU airport, any flight arriving into an EU airport or those flights which are operated by an EU airline.

The original drafting of EC261 left many grey areas in the interpretation of the wording which has resulted in a series of European Court of Justice (CJEU) decisions stretching the legislation far beyond its original scope. Airlines in and out of the EU and around the world have been affected by the development of the case law as the balance of consumer protection and the obligations of the airlines becomes increasingly disproportionate.

As a result regulators have become increasingly watchful of how organisations manage their approvals and safety competency strategies heightening fears within the industry that their every move is being scrutinized.

ELMS will help organisations by providing a centralised competency and compliance management system to monitor training, qualifications and experience, highlighting skill gaps and prompting where additional supervision is required. The ability to better manage and understand the competence of engineers carrying out maintenance tasks will allow for better resource management which will in turn drive quality and reliability. This will impact greatly on the exposure airlines have to maintenance related delays and therefore potential financial claims.

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