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Airlines have slammed new European Union compensation regulations as ‘unworkable’.

Carriers stand to lose thousands of pounds under EU rules introduced today (Thursday) which give passengers the right to claim up to £428 if a flight is cancelled.

Airlines argue they are exposed to massive payouts should a flight be cancelled or delayed for reasons beyond their control. The legislation also allows customers to claim hotel costs, meals and telephone calls, as well as refunds if a flight is delayed by more than five hours. But the European commissioner for transport insists the new rules are meant to deter airlines from overbooking. "If an airline chooses to cancel a flight, it should not disadvantage its passengers," a spokesman said.

Monarch Scheduled managing director Tim Jeans said a cancelled flight to Tenerife could result in up to 200 passengers asking for compensation of £275 each. "No airline has £55,000 sitting in its till," Jeans said. "The regulations are unsafe, impractical and unworkable." British Airways labelled the compensation ‘disproportionate’, as a passenger on a £79 fare is entitled to the same amount as a passenger on an £800 fare.

Read the full story in this week's Travel Weekly.

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