EU court rules against Ryanair amid compensation claims

The European Union's Court of Justice just passed a judgement on a case brought against Ryanair by a number of passengers in a claim for compensation. Ryanair has lost.

The outcome is being watched closely by the airline industry as it will set a precedent for compensation payment liabilities if flights are cancelled and airspace closed due to natural events in future.

The eruption of the Icelandic Volcano in March of 2010 resulted in a build up ash clouds over Europe which eventually caused European airspace to be closed between 15th-23rd April, thousands of flights being cancelled, and weeks of disruption.

As a result many passengers attempted to file compensation claims against Ryanair for their flights being cancelled.

However, given that the Irish Aviation Authority held that as airspace had been closed due to "extraordinary circumstances", Ryanair maintained that according to article 7 of EU airline regulations, passengers were therefore not entitled to claim any damages for delays or cancellations.

The court says that was wrong and found against Ryanair.