Changes of procedural court rules in Germany coming into force on 1 January 2026: What the new procedural rules mean especially for airlines dealing with passenger claims

Introduction
The legal landscape governing air passenger rights is primarily shaped by Regulation (EC) No 261/2004, which grants air passengers compensatory rights when their flights are delayed, cancelled, or when they are denied boarding. The dispute amounts for these claims generally range between EUR 250,00 and EUR 600,00 but they are higher if the claim for two or more passengers are combined in one court claim. This range of claims is placing them squarely within the scope of the reform. Until now, cases related to passenger claims under Regulation 261/2004 are mostly brought before the local courts in Germany. However, with the ZPO reform set to come into force in 2026, the jurisdictional rules will undergo a significant overhaul, expanding the scope of the local courts to handle claims with higher dispute values, and stepping up the value to appeal.

What are the practical consequences of the reform?

1. Competence of local courts is expanded
The most significant aspect of the ZPO reform, from a jurisdictional perspective, is the expansion of the local courts’s competence to include higher-value claims. Previously, the local courts were generally restricted to claims below EUR 5,000.00. This cap has now been raised to EUR 10,000.00, meaning that claims involving amounts of up to EUR 10,000.00 have to be brought before the local courts. The typical compensation amounts awarded under the Regulation (EC) No 261/2004 fall within the range of EUR 10,000. This means that the vast majority of passenger claims – even for claims of travel groups – will now fall within the jurisdiction of the local courts. This is a notable shift, as the higher competence threshold will likely increase the caseload of the local courts, with potential implications for the speed and efficiency of these proceedings. As the local courts competent for passenger claims in Germany – so called airport courts – are already confronted with high volume of cases, they will have to accommodate a higher workload. Even now we see that some judges have very long timelines when it comes to their work on the individual case and the court hearing. As the German administration of the courts is financially not very well equipped it is not expected that new staff and judges will be employed. Instead, this situation could be the driving force towards digitalization in court, which has not been implemented to a large extent yet. Especially oral hearings via video conference calls are not a normality in all local courts. Sometimes this is due to the refusal of the judges to use the technical equipment but more often this is due to the missing of such equipment but also issues with the technology itself which makes the use inefficient. Also, when it comes to the decisions and judgements, we are expecting that the reform will be a step towards using more AI when assessing the content of the court file and the drafting of the judgment. Here it will be essential that the judges do not apply “one fits all” solutions but that they keep the induvial case within their focus. As a party to the court case it will be essential to monitor these developments and to present the respective full defense material to court to illustrates the induvial situation of the legal matter in order to prevent automated decisions.

2. Mandatory legal representation only above EUR 10,000.00
The reform also includes a provision that makes legal representation mandatory only for claims exceeding EUR 10,000. For claims below this threshold, passengers will not be required to have legal representation, which may lead to a higher number of self-represented claimants. This could result in more claims being filed in the local courts by individual passengers – especially when they claim for damages above EUR 5,000 which are currently heard by the district courts where legal representation was compulsory.

3. Appeal threshold increased to EUR 1,000.00
Another key change is the increase of the threshold for an appeal. Under the current system, appeals can be made for cases where the disputed amount exceeds EUR 600.00. Under the 2026 reform this threshold will be raised to EUR 1,000.00. This means that airlines exposed to compensation claims under Regulation 261/2004, where the amounts at issue range typically from EUR 250.00 to EUR 800.00 (if more than one passenger is claiming in one court claim) may not be able to appeal in most cases unless the local court is explicitly allowing for an appeal even if the threshold of the claim of EUR 1,000,00 is not met. It is expected that the judges will not grant many appeals if the sum of the claim is below EUR 1,000.00 as they will most likely rather close the case for good. Therefore, the possibilities for airlines to appeal a judgement in order to receive a new assessment of the case in the next instance will be reduced.

4. Simplified procedure (Sec. 495a ZPO) for claims up to EUR 1,000,00
To improve the efficiency of the court system, the reform introduces a simplified procedure for claims up to EUR 1,000.00 under Sec. 495a ZPO. This so called 495a-procedure is designed to expedite cases involving small amounts in dispute, making it easier for courts to process them more quickly. While these specific rules of procedure are now in place for claims up to EUR 600.00 the number of cases where courts can make use of these rules will increase. Here, it is important to note that the judge can decide by written proceedings unless one party applies for an oral hearing. From our experience the oral hearings are important to explain the situation of the airlines in the specific case and to discuss the legal implications. Very often courts – even though they work on numerous air passenger claims – do not have the full picture of how airlines operate and to what impacts from outside their operation they are exposed to. When applying the rules of 495a-proceedings the judge has a wider discretion when it comes to accepting provided evidence. This could be in favour of the airlines as they normally bear the burden of proof when defending against a claim. Therefore the range of cases where a somewhat more relaxed approach of providing evidence applies, will increase giving courts the ability to accept the defense material as valid and true more easily.

5. Cost appeals only above EUR 300,00
In German court procedures the allocation of costs is conducted in so called cost proceedings which are separated from the main proceedings. Another change that airlines should be aware of is the adjustment to cost appeals. Under the new reform, parties will only be able to appeal the cost decisions in cases where the cost exceeds EUR 300,00. Formerly this amount was EUR 200,00.

6. Transitional rules for pending proceedings and appeals
The reform also includes transitional provisions for pending proceedings. This ensures that cases already in progress when the reform takes effect will continue under the old rules. This means: The new jurisdictional rules apply only to proceedings initiated after 31 December 2025. Pending cases remain subject to the current regulation, i.e. the cases above the EUR 5,000,00 threshold remain with the district court. However, for a claim above EUR 600.00 which can be currently appealed, the question if the decision can still be appealed depends on the date when the decision of the local court was handed down or served on the parties. If this is done before 1 January 2026, the old rules apply, i.e. the case can be appealed. If the judgement is handed down or served on the parties on or after 1 January 2026, an appeal will not be possible unless the court specifically granted an appeal.

Conclusion
The 2026 civil procedural law reform represents a shift in the landscape of civil litigation in Germany, with some implications for airlines facing passenger claims. While the expansion of local court jurisdiction and the wider introduction of simplified procedures may streamline the processes to a certain extent, it remains to be seen how the local courts will manage the foreseeable increase in cases. We will closely monitor these developments for you. The new thresholds should also be kept in mind for the strategic decision on the defense of passenger claims. We are happy to assist you by taking a proactive approach to navigate the complexities of the ZPO reform and by ensuring an effective assessment of the legal risk that each court claim involves.