Huzar appeal

nigelpm

batman44 wrote: »

I think they need to be worried about the long term effects of this.

190 GBp -24.38%Jun 26 10:20 Dart group

Agreed. They are thinking too short term for sure.

David_e

batman44 wrote: »

190 GBp -24.38%Jun 26 10:20 Dart group

Yikes! Some drop! Still, they have had a pretty good run over the last few years.

I find it difficult to believe that any competent FD and external auditor would allow the accounts to be prepared on the basis that significantly understates their potential exposure to Reg 261/2004 claims.

nigelpm

David_e wrote: »

Yikes! Some drop! Still, they have had a pretty good run over the last few years.

I find it difficult to believe that any competent FD and external auditor would allow the accounts to be prepared on the basis that significantly understates their potential exposure to Reg 261/2004 claims.

Problem here is they have absolutely no idea what the potential exposure is so in accordance with IFRS they need a statement but can't reasonably estimate it.

David_e

nigelpm wrote: »

Problem here is they have absolutely no idea what the potential exposure is so in accordance with IFRS they need a statement but can't reasonably estimate it.

My knowledge of accounting standards is years out of date although I take the point about estimates. I am sure they have an extremely good idea what their maximum potential exposure is but what proportion they expect to ultimately pay out is obviously a different question.

I can't believe that a reasonable estimate can't be made and that no provision is "better" in that situation - but then again if it's IFRS we are talking about ....

nigelpm

David_e wrote: »

I am sure they have an extremely good idea what their maximum potential exposure is but what proportion they expect to ultimately pay out is obviously a different question.

I can't believe that a reasonable estimate can't be made and that no provision is "better" in that situation - but then again if it's IFRS we are talking about ....

What are you thinking?

Perhaps, they know how many of their flights were delayed by x hours and then multiply by compensation amounts plus a token amount for legal costs.

I guess that would be a reasonable estimate.

BUT... the percentage who may claim will be anything from 0% to 100% - just too difficult IMHO until about six months time when they'll have a much better idea I suspect and be able to consider total claims made as a percentage against possible total claims.

Certainly very tricky and any estimate would be a complete guess.

David_e

nigelpm wrote: »

What are you thinking?

Perhaps, they know how many of their flights were delayed by x hours and then multiply by compensation amounts plus a token amount for legal costs.

I guess that would be a reasonable estimate.

BUT... the percentage who may claim will be anything from 0% to 100% -

Exactly that. As you say, the real imponderable is the proportion of passengers on any non-EC delayed/cancelled flight who will make a claim.

So would disclosure of a contingent liability not be be appropriate? (None in the 12/13 accounts, by the way!)

"Contingent liability:

• a possible obligation depending on whether some uncertain future event occurs, or
• a present obligation but payment is not probable or the amount cannot be measured reliably"

dino25uk

So the hullaballoo from the airlines is that it is going to cost billions in claims, which to my mind indicates the huge number of passengers who have been delayed over the years.
There is a simple solution for the airlines. Get your business in order and get passengers to their destinations in reasonable time....... Simple.

legal_magpie

dino25uk wrote: »

There is a simple solution for the airlines. Get your business in order and get passengers to their destinations in reasonable time....... Simple.

And if things go wrong, don't mess about. Accept you are at fault and offer compensation to all passengers promptly. This will reduce the hassle of going to court, keep your legal costs down and boost your ratings as an airline who looks after its customers.

David_e

legal_magpie wrote: »

boost your ratings as an airline who looks after its customers.

If only! If businesses in general spent half as much time and effort doing that as opposed to making lots of adverts telling you they do it/think it's important, etc., they might find customer satisfaction did actually increase.

I won't hold my breath.

danielleindebt

I just received my letter from jet2 saying they are appealing to the court of appeals decision blah blah they can't deal with my issues raised until the outcome of the supreme courts decision we will retain your details on file and are happy to reassess your claim once the out come is known.

I'm assuming it is just a wait and see? Or are they just putting me off?

Thanx for any help
Danielle