EU to rewrite passenger rights regulation

The European Union is planning changes to its law on airline passenger rights, following heavy criticism by both carriers and passenger groups. Shortcomings in the regulations were highlighted last year during the airspace closures that started a year ago this Thursday, after Icelandic volcano Eyjafjallajokull erupted.

Airlines, which faced a bill of £2.2 billion as a result of the closures, argued the rules were not originally conceived to deal with such circumstances outside of their control. Siim Kallas, the European Commission vice president, announced yesterday that the EU was ready to rewrite the Regulation on Air Passenger Rights. The changes will seek to clarify who takes responsibility during situations such as airpace closure or heavy snow and whether limits should be placed on airlines' liability.

It will also examine whether compensation should be made more proportional to fares paid - following last year's ash crisis low-cost carrier Ryanair initially refused to pay compensation, arguing it would far outstrip what most of its customers paid for the flight. It eventually relented but put a limit on how much could be claimed.

It is understood the European Commission accepts the financial burden in such circumstances should be shared more widely. This could mean an airport which failed to clear snow could be expected to pick up at least part of the bill.

The Commission also accepts governments should step in and provide some financial support should there be a repetition of disruption on the scale of the ash crisis. Kallas plans public consultations with industry and consumer groups before the end of 2011 about proposed revisions to the legislation.