Found on the
Cheapflights newsletter, which I get primarily for interesting information like this and the annoucement of new airlines,
confirmed by
The Times Online:
As of 17 February due to a new
EU regulation, passengers flying on airlines departing from all EU member states will be able to claim compensation of up to €600 (approximately £416) if a flight of more than 3500km (1800 miles) is cancelled or overbooked; flights of up to 1,500km will mean around £173 compensation and about £277 for flights up to 3500km. Airlines are exempted from paying "if it can prove that the cancellation is caused by extraordinary circumstances which could not have been avoided even if all reasonable measures had been taken" but it does not seem to cover technical problems with the aircraft.
Passengers will also be entitled to free meals, drinks and two free phone calls during long delays and a hotel room if the delay goes into the night. Only a small number of carriers currently offer free refreshments or refreshment vouchers in the event of delays; many low-cost airlines provide nothing at all. The airline must provide assistance even when the delay occurs due to a factor outside the airline's control, such as severe weather conditions.
Any airline failing to comply with the new regulations on flights departing from Britain will be liable for fines of up to £5000 per passenger. Passengers must first complain to the airline and then to the the Air Transport Users Council if no resolution is reached. If the council is unable to negotiate a deal, the Civil Aviation Authority can prosecute the airline.
Whilst this is wonderful news for consumers, many airlines have been predicably opaque in their response. The Air Transport Users Council expects many individual cases to go to court as airlines exploit loopholes in the regulations to avoid compensating passengers and a challenge in the European Court of Justice will be heard in September or October of this year. Various industry insiders have also raised concerns regarding the implications of airlines rushing through safety procedure to avoid paying a sizable compensation bill.