The European Court of Justice has determined that authorized authorities can order compensation payments within the meaning of the Air Passenger Rights Regulation. The Polish Lot had appealed against a decision by the Hungarian consumer protection authority.

Some EU countries maintain state consumer protection authorities. Some time ago, the Hungarian government authorized it to issue notifications that oblige airlines to pay in the event of claims arising from the Air Passenger Rights Ordinance. The Polish carrier Lot did not want to accept that.

Numerous passengers had contacted the office because of a significantly delayed flight from New York to Budapest. This ordered compensation payments in the amount of 600 euros per passenger. However, Lot took the view that the Hungarian authorities were not authorized to do so and took legal action against the decision. Ultimately, the case ended up before the European Court of Justice.

This judged that state-authorized authorities can order the payment of compensation payments. This would also be in the interests of the Air Passenger Rights Ordinance, as this should actually avoid lengthy court proceedings. In practice, however, many airlines take their chances.

From the point of view of the ECJ, it is crucial that both sides, i.e. both the airline and the passenger, have the opportunity to appeal to a court of law against a decision by a correspondingly authorized authority. The offices are not obliged to decide on claims arising from the Air Passenger Rights Ordinance, but can be authorized to do so.