Or how a court decision can significantly change the practices of low-cost carriers.

At first glance, the question of whether tour operators can sue anyone, and in particular - airlines, seems trivial. Of course, they can file a lawsuit against anyone, as long as they have a legal basis for doing so. However, in our practice, we very often encounter situations in which air carriers refuse to provide compensation for a canceled flight, and tour operators are not very persistent in defending their interests and do not go all the way.

This is about the so-called "group reservations", in which a tour operator or other travel organizer reserves seats for a specific flight in connection with its program for specific dates. Because seats are first "bought" and then sold as part of travel packages, the names of passengers are specified at a later stage, usually weeks or a month before the flight date. Accordingly, a ticket is issued by the airline at that time.

So months pass from the moment of booking to the issuance of a plane ticket, and during this time it very often happens that the airline (especially if it is a low-cost one) simply decides that it will cancel the booked flight, either citing some unproven force majeure as the reason, or frankly admitting that the route is not profitable for it, there are not enough passengers, and so on. And in such situations, airline companies claim that they do not owe compensation to tour operators, because only travelers have such a right, and they either do not yet have a ticket issued (i.e., are not individualized), or have been warned more than 14 days before the flight date (which avoids compensation for passengers under Regulation 261/2004).

However, it turns out that this is not the case at all:

In fact, tour operators have the full right to demand compensation from air carriers for their damages from a canceled or delayed flight, as well as for any other form of breach of contract that has caused them damage. And the lawyers of "Gospodinov and Genchev" proved this by filing a lawsuit against Wizz Air and winning it in the first instance before the Sofia District Court, and we expect a possible confirmation in the second instance. As far as we know, this decision is a precedent, and we expect its consequences to be significant.

What are the prerequisites for the tour operator to have a right to compensation?

First of all, we must make a distinction that this is not about the possibility of tour operators to exercise the rights of tourists on their behalf, but a separate right to compensation, which arises from the contractual relationship between the tour operator and the airline. By making a group reservation, the parties actually conclude an air transport contract, according to which the airline undertakes to issue tickets to tourists and operate a flight on a certain date, in return for which it receives remuneration. Therefore, the failure to fulfill this contract by canceling a flight is grounds for seeking compensation, pursuant to Art. 79, para. 1 in conjunction with Art. 82 of the Civil Procedure Act.

Here, the objections of the air carriers that a ticket has not yet been issued or that the prerequisites for compensation under the Regulation  on compensation and assistance to passengers in the event of denied boarding and cancellation or long delay of flights are irrelevant. Regulation 261/04 was created to quickly and standardize an unpleasant domestic situation related to the care of food and accommodation of passengers waiting at airports, as well as the compensation for their immediate damages. It does not affect the relationship between traders, which develops between a tour operator and a carrier long before the flight date and affects completely different business interests. Such as the interest in predicting months in advance when there will be flights, so that a tourist package can be organized and tourists and other contractors can be coordinated so that the promised program can be fulfilled.

Therefore, the Regulation and the rules in the General Terms and Conditions of the airlines that copy it do not apply to disputes with tour operators, but they are governed by the general commercial order. Which provides that compensation is due for damages, as long as there is fault, which is presumed until proven otherwise.

What can be the damages of tour operators in the event of a canceled flight?

The negative consequences of the cancellation of a flight for an organized tourist program  can be many and of a very different nature. And they are always at the expense of the tour operator, who is responsible for the behavior of its counterparties - Art. 90, para. 1 of the Tourism Act.

The consequences and damages can be:

• Cancellation of the entire trip due to a lack of alternative flights. Then there will be a missed benefit from the unrealized profit for each registered tourist;
• A significant change to the trip (change of route, start and end date of the program, etc.), which gives tourists the right to cancel the contract without penalty - Art. 88, para. 2 of the Tourism Act. In such a case, the damage is again lost benefit from the profit from the canceled tourists, as well as losses from paid non-refundable deposits.
• Cancellation of tourists who have expressed a desire but have not concluded a contract, or a decrease in interest in the trip compared to previous similar periods. Again, lost benefit from the unrealized profit of a tourist.
• Losses in the form of increased transportation costs, costs for additional nights or other compensatory services, etc.
• Losses in the form of paid compensation/complaints for an unfulfilled package tour contract

These damages are listed as examples of the most common in our practice. However, the list is not exhaustive. All negative consequences of a flight cancellation are damages for the tour operator, as long as they have a property dimension.

Recommendations in case of a canceled flight:

We recommend that all tour operators in the event of a canceled flight:

1. Always create and keep written or electronic traces of their relations with the airline companies - group reservations, screenshots of requests in electronic systems, invoices, correspondence, confirmations, etc.
2. Document and collect evidence of all negative consequences that have occurred as a result of the unwanted event. Above all, if there are refusals from tourists who have registered or expressed a desire to register - to document this.
3. To consult with a competent lawyer and follow his instructions for further clarification of the facts and legal situation in the case.
4. To first ask the airline to voluntarily pay for the damages it has caused.
5. To turn to the Bulgarian court.