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14 April 2011 13:59
The EU is to review compensation laws for air passengers
Compensation laws for air passengers are to be reviewed by EU lawmakers, it has been revealed.
EU regulation 261 requires airlines to cover costs when customers suffer delayed and cancelled flights - leaving huge bills after the ash cloud crisis and big freeze of last year.
The review, which comes after calls from airlines, was confirmed by European Commission vice-president Siim Kallas.
He said it would examine the regulation with a view to creating a new law in 2012.
The review will try to establish where the liability lies for payments over natural disasters or "extreme circumstances" - which have had an effect on the travel plans of many
travel insurance customers over the years.
For those affected by cancellations or delays, the review aims to establish how much compensation should be paid.
Kallas said: "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."
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