In a landmark decision, the Mexico’s Supreme Court (SCJN) has ruled that airlines must compensate passengers who are denied boarding due to overbooking, irrespective of other alternatives provided as per the Civil Aviation Law. This means that airlines must compensate at least 25% of the ticket price even if the passenger chooses a ticket refund, availability on the next flight with airline-covered food and lodging, or a flight rescheduled at their convenience.
This ruling emerged from an in-depth review of the Civil Aviation Law’s regulations concerning airlines’ responsibility in situations of missed connecting flights due to overbooking. The court found that, while the law treats airlines and passengers differently regarding compensation for damages, this differentiation must not infringe on passengers’ rights to indemnification for potential damages suffered.
However, the court emphasized that the law must be considered within its broader legal context, indicating that various scenarios might hold airlines liable. For instance, Article 52 of the law dictates that, in case of overbooking, airlines must provide, at the passenger’s discretion, a ticket refund, availability on the next available flight with airline-covered wait-time food and lodging, or a rescheduled flight. Furthermore, the airlines should also offer compensation of at least 25% of the ticket price if the passenger opts for the first or third options.
The court noted that while the law recognizes the potential additional damages from overbooking, it unreasonably denies full compensation in the second scenario, rendering it unconstitutional. Therefore, commercial airlines must compensate passengers denied boarding due to overbooking, regardless of the alternatives offered to them.
In conclusion, the First Chamber declared the last part of Article 52 of the Civil Aviation Law unconstitutional as it excludes those who select the next available flight with airline-covered food and lodging from the mandated compensation in overbooking situations.
Airlines have not yet commented on the ruling, but a negative reaction is expected. Sources indicate that such a prevision will surely impact ticket fares.
