Technical failure affecting a new aircraft model

The European Court of Justice (ECJ) ruled in case C-385/23 that the occurrence of an unexpected and unprecedented technical failure affecting a new aircraft model may constitute extraordinary circumstances within the meaning of Article 5 (3) of Regulation (EC) No 261/2004.

The case at hand concerns a flight from Helsinki (Finland) to Bangkok (Thailand) that was to be operated by an aircraft which had entered into service just over five months earlier. However, the fuel gauge of that aircraft experienced a technical failure during refueling shortly before take-off, which resulted in the cancellation of the flight due to safety concerns. Neither the aviation safety authority nor the aircraft manufacturer was aware of the defect prior to this incident. It was later on discovered that the reason for the failure was a hidden design defect affecting all aircraft of the same type.

Based on these facts of the case, the operating air carrier was of the opinion that the cancellation was necessary due to extraordinary circumstances and, therefore, refused to pay compensation payments to passengers.

The ECJ decided that such technical failures affecting a new aircraft model recently put into service where the manufacturer of that aircraft recognises that the failure was caused by a hidden design defect conerning all aircraft of the same type and impinging on flight safety are covered by the concept of extraordinary circumstances within the meaning of Article 5 (3) of Regulation (EC) No 261/2004.

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