EGC: Quotations of prices in computerized booking systems

The EGC (European General Court) decided that in the context of a computerized booking system, the final price to be paid must be indicated whenever the prices of air services are shown (Judgment dated 15 January 2015; C 573/13). Introduction The European Regulation No 1008/2008 is worded as follows: „Customers should be able to compare effectively the prices for air services of different airlines. Therefore the final price to be paid by the customer for air services originating in the Community should be indicated every time, inclusive of all taxes, charges and fees. Community air carriers are also encouraged to indicate the final price for their air services from third countries to the Community.”  

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  Background of the Case and Subject Matter Until the end of 2008, Air Berlin’s booking system was organized in such a way that, having selected a journey and a date, the customer would find, as a second step, a table listing the possible flight connections for the chosen date, and showing departure and arrival times and two fares for each flight. A box below that table showed the taxes and charges applicable to the air service selected and the fuel surcharge, while the „price per person“ including all those elements was set within a border. A double asterisk next to the box explained, with reference to the conditions applicable, that a service charge not yet included in the final price might apply. After entering the necessary personal details as a third step, the customer could, in the fourth step, establish the final price of travel, including the service charge. As a result of the entry into force of a new European Regulation (No 1008/2008) on 1 November 2008 (see above), Air Berlin modified the second step of its booking system so that the air fare for the selected air service was displayed in the table together with the departure and arrival times and, separately, taxes and charges, the fuel surcharge and the total amount of those separately indicated elements. A box below the table showed the price calculated on the basis of those figures, the service charge and, below that, the final price per person for the selected flight. An association for customer protection took the view that even this new presentation of prices is not compatible with the European Regulation. Therefore, it brought an action against Air Berlin by which it sought an order requiring Air Berlin to discontinue this practice and reimbursement of the costs incurred in connection with a warning notice relating to that action. The application of the association having been granted by the court of first instance, whose judgment was upheld on appeal, Air Berlin brought an appeal on a point of law before the German Federal Court. The German Federal Court was not sure how to interpret the Regulation No 1008/2008 and asked the EGC for a preliminary ruling. Preliminary ruling The EGC decided that the Regulation No 1008/2008 must be interpreted that in the context of a computerized booking system, the final price to be paid must be indicated whenever the prices of air services are shown, including when they are shown for the first time. Furthermore, the final price to be paid must be indicated not only for the air service specifically selected by the customer, but also for each air service in respect of which the fare is shown. A final ruling on the case still needs to be taken by the German Federal Court.