Finnair avoids €300,000 fine over compensation dispute

Finnair has been cleared by Finland’s Market Court in a dispute over passenger compensation practices, avoiding a proposed €300,000 fine.

The case, brought by the Finnish Competition and Consumer Authority and the Consumer Ombudsman, challenged Finnair’s policy of rejecting compensation claims submitted more than two months after a flight disruption.

The court ruled that the airline’s approach does not violate consumer protection law, noting that Finnish legislation does not define a specific deadline for claims. As a result, Finnair is permitted to set its own time limit.

Regulators had argued the two-month window was too restrictive and sought both a financial penalty and an order to stop the practice.

The dispute also touched on delays in refunding passengers for cancelled flights, though the ruling focused primarily on the legality of the claim deadline.

Bottom line: The decision strengthens airlines’ discretion in setting procedural limits for compensation claims in Finland, potentially influencing how passenger rights are applied in practice.