148 LEGAL IMPACTS OF COVID-19 IN THE TOURISM INDUSTRY It is not only businesses that are suffering but also passengers who are facing liquidity problems, and many currently need the money spent on travelling expenses urgently. Among the results of the pandemic is the confusion which has been caused to both passengers and airlines. Several legal issues have arisen since the beginning of the COVID-19 crisis. According to current EU legal framework on passenger rights in all means of transport11, passengers can claim reimbursement within fourteen (14) days or a short period of time if their trip is cancelled due to extraordinary circumstances, like the current COVID-19 pandemic. II.1. EU Legal Framework Regarding Passengers’ Rights in Case of Flights Cancellations The Air Passengers Rights Regulation regulates only the cases in which the air carrier cancels the contract. According to the above-mentioned Regulation, the air carriers should compensate passengers if they proceed to cancellation of flights, except when the cancellation occurs in “extraordinary circumstances which could not have been avoided even if all reasonable measures had been taken” (Article 5(3) in conjunction with Article 7 and recitals 12 and 14 of the Preamble of the Air Passenger Rights Regulation). The question one should ask is whether cancellations due to COVID-19 are deemed to have the nature of an “extraordinary circumstance”. The outbreak of a pandemic, such as COVID-19, could generally fall under the case of “extraordinary circumstance” since it constitutes a dire global public health emergency that has led to draconian public measures outside of the control of airlines. The list of extraordinary circumstances stated in the Air Passenger Rights Regulation is indicative. Besides, according to Recital 14(2) of the Preamble of the Air Passenger Rights Regulation, “such circumstances may, in particular, occur in cases of political instability, meteorological conditions incompatible with the operation of the flight concerned, security risks, unexpected flight safety shortcomings and strikes that affect the operation of an operating air carrier”. 11 Specifically Regulation (EC) No. 1371/2007 of the European Parliament and of the Council of 23 October 2007 on rail passengers’ rights and obligations (OJ L 315, 3.12.2007, pp. 14-41), Regulation (EU) No. 181/2011 of the European Parliament and of the Council of 16 February 2011 concerning the rights of passengers in bus and coach transport and amending Regulation (EC) No. 2006/2004 Text with EEA relevance (OJ L 55, 28.2.2011, pp. 1-12) and Regulation (EU) No. 1177/2010 of the European Parliament and of the Council of 24 November 2010 concerning the rights of passengers when travelling by sea and inland waterway and amending Regulation (EC) No. 2006/2004 (OJ L 334, 17.12.2010, pp. 1-16).
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