AIRLINES will have to spend millions of pounds compensating passengers for flight delays and cancellations under a European regulation coming into force next month.

From February 17, passengers will be able to demand compensation of up to €600 (£416) if a flight of more than 3,500km (1,800 miles) is cancelled or overbooked.

Cancelled flights of up to 1,500km will mean £173 compensation and up to £277 for flights up to 3,500km. Passengers will also be entitled to free meals, drinks and two free phone calls during long delays. The airline will have to provide them with a hotel room if the delay continues overnight.

The assistance must be provided even when the delay is caused by a factor outside the airline’s control, such as severe weather. The regulation applies to all airlines departing from airports in EU member states.

Some airlines, including British Airways, provide vouchers for refreshments during long delays. But Ryanair gives nothing even when its flights are delayed by several hours. Most budget airlines provide only very limited assistance.

Any airline which fails to comply with the regulation on flights departing from Britain will be liable for fines of up to £5,000 per passenger. Passengers must complain first to the airline and then contact the Air Transport Users Council if their claim is not resolved. If the council cannot broker a deal, the Civil Aviation Authority can prosecute the airline.

The council is expecting many cases to go to court because airlines plan to exploit loopholes in the regulations to avoid compensating passengers. Simon Evans, the council’s chief executive, said: “The regulation gives significant new rights to passengers but there are ambiguities. It may be that only the courts will be able to decide what passengers are entitled to.”

Various airline industry bodies have started legal challenges over the regulation but these will not be heard by the European Court of Justice until September or October.

The Department for Transport has written to airlines telling them that they must comply with the regulation. But some airlines, including easyJet and Ryanair, refuse to say whether they will comply.

An easyJet spokesman said: “We are going to end up fighting constantly with passengers on this.” Ryanair refused to give direct answers to questions posed by The Times. It suggested, however, that it would refuse to comply with the regulation pending the judgement of the European Court.

The industry is concerned that the regulation could put pressure on airlines to ignore safety concerns and proceed with a flight to avoid an expensive compensation bill. Cancelling a flight with 180 people on board could cost an airline more than £100,000.

The regulation exempts airlines 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”. The exemption appears not to cover technical problems with the aircraft.

The regulations will be enforced by the EU state from which the flight was due to depart. A passenger pursuing a claim for a flight from Paris to London would have to go through the French authorities.

The European Low Fares Airline Association said there was no agreement among airlines on how to respond to the regulation. Jan Skeels, the association’s secretary-general, said: “Passengers may think it sounds wonderful but the situation remains very unclear.”

CUT-OUT-AND-KEEP GUIDE TO AIR COMPENSATION

• If your flight is cancelled, overbooked or subject to a long delay, ask any representative of the airline for written details of your rights. They are obliged under the regulation to provide them. The details are also available on the web at http://europa.eu.int/comm/transport/air/rights/index_en.htm
  
  
• Complain immediately to the airline if it fails to offer you the compensation or assistance specified in the regulation
  
  
• If the airline continues to deny you your rights, complain to the Air Transport Users Council, either by calling 020 7240 6061 or writing to 45-59 Kingsway, London, WC2B 6TE
  
  
• The council will negotiate with the airline on your behalf. If the airline still refuses to comply with the regulation, the council can refer the matter to the Civil Aviation Authority
  
  
• The CAA will be able to prosecute the airline, which will be liable for fines of up to £5,000 per incident. Each individual complaint will be treated as a separate incident
  
  
• If you are entitled to compensation, the airline must pay it within seven days. It may try to offer you vouchers but can only pay compensation in this way with your signed agreement

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