Emirates and Etihad are to face enforcement action in the UK for not paying compensation to passengers whose flights were delayed, said the country’s aviation watchdog.
The two UAE carriers were highlighted along with three other major airlines by British authorities as having breached European Union consumer law after a review of airline policies.
According to the Civil Aviation Authority, Emirates was the most complained about airline for non-payment of compensation for missed connecting flights.
However, Etihad has described the CAA’s decision to blame the airline in public as "unprofessional and unacceptable".
The CAA estimates more than 200,000 passengers travelling on the two UAE airlines and American Airlines, Singapore Airlines and Turkish Airlines, which are also facing action, could be at risk of missing connecting flights due to delays.
The regulator began enforcement action following an extensive review of policies for the top 31 airlines operating in the UK.
"Etihad Airways has been engaged in constructive dialogue with the Civil Aviation Authority in the UK on the issue of compensation over several months," said a spokesman.
"We take such matters very seriously and in no way look to breach the law. Therefore, before even completing the dialogue, we find the CAA’s approach wholly ‘unprofessional and unacceptable’ to publicly blame Etihad Airways for infringements to passengers’ rights which we unreservedly deny."
Following its own review the airline said it "categorically" states it has not contravened the law and pledges to maintain dialogue with the CAA to make sure they have robust compensation policies.
The two UAE airlines confirmed to the CAA that they did not pay compensation to passengers delayed on the first leg of a flight that caused them to miss a connecting flight and, as a result, to arrive at their final destination more than three hours late.
Failure to compensate passengers in this manner breached passengers’ legal rights for flight disruption, said the regulator.
European guidelines on passengers’ rights during disruption are clear that the final destination of a connecting flight is the last airport listed on the passenger’s ticket, it said.
The airlines were also criticised for not having Alternative Dispute Resolution (ADR) services, which are independent and provide quick binding resolutions to complaints.
"Any disruption to a flight is frustrating for passengers, but delays that cause people to miss connecting flights have a particularly damaging effect on people’s travel plans," said Richard Moriarty, director of Consumers and Markets at the CAA.
"That’s why there are clear laws in place to make sure passengers that experience this type of disruption are looked after by their airline and compensated when the disruption was in the airline’s control.
"Airlines’ first responsibility should be looking after their passengers, not finding ways in which they can prevent passengers upholding their rights."
He said it was disappointing a small number of airlines continue to let their passengers down by refusing to pay compensation they were entitled to.
"Where we see evidence of passengers systematically being denied their rights, we will not hesitate to take the necessary action to ensure airlines change their policies and their customers get the assistance they are entitled to," said Mr Moriarty.
Under European rules, passengers are legally entitled to compensation if they arrive at the final destination of their journey more than three hours late - including if booked on a connecting flight - unless the delay was due to extraordinary circumstances, said the CAA.
These rights apply to any flight departing an EU airport, regardless of the nationality of the airline.
However, Etihad said the issue of non-EU airlines liability under EC261 for delays caused by a missed connecting flight outside of the EU was currently subject to a case that will be heard by the UK Court of Appeal. "Etihad Airways will, of course, abide by any decision of the Court of Appeal," said Etihad.
Emirates had not responded at the time of publishing.

Source: The National