EC261 compensation for wrongful denied boarding - does the handling agent or the airline pay?
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Under EU 261 rules, the operating airline is responsible for compensation claims if you presented correctly and with valid documentation, in this specific case 'denied boarding':
- If boarding is denied to passengers against their will, the operating air carrier shall immediately compensate them in accordance with Article 7 and assist them in accordance with Articles 8 and 9.
How that compensation claim is handled internally between contracted parties is outside the scope of the EU regulation.
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Source: stackoverflow.com
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