Following the $3.57bn compensation charge levied at European airlines following last year’s ash cloud catastrophe, EU lawmakers are reviewing the rules governing compensation. Airlines have been lobbying for a review of the laws which usually require them to pay in full to any customers who suffer from delays and cancellations, regardless of whether the issue was unavoidable (such as the Icelandic ash cloud).

Siim Kallas, the European Commission’s vice-president, announced today that such a review would begin and hopes to issue new laws in 2012.

In a statement, Kallas read “Overall, EU passenger rights legislation has been a huge step forwards, providing a 'safety net' for passengers, vastly reducing certain commercial practices and raising standards throughout the industry. “The next big push will be to step up enforcement – it is not enough to have rights on paper. They must be applied on the ground. "Looking ahead, there are issues we also need to revisit, and for that we need a detailed analysis and a revision of the law.”

It is understood that the review will also focus on lost luggage and rescheduled itineraries. It is also likely to tighten up the criteria of what can be deemed “extraordinary circumstances”, and the actions airlines must take and how much compensation they must pay out for such instances.

Reported by Zeke Lyons.

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