Pictured above: Paul Griffiths, senior partner and a commercial litigation specialist at Midlands law firm Challinors

Out-of-pocket travellers who were stranded in Europe and unable to return to the UK whilst the world's skies were closed to aircraft, may be able to claim financial compensation through a key piece of European legislation, according to Paul Griffiths, senior partner and commercial litigation specialist at Midlands law firm Challinors.

"The worry for many of the estimated 160,000 British travellers who were unable to return home when the Icelandic volcano erupted, is whether and from whom they will obtain compensation.  The answer in fact lies in a piece of European legislation which came into effect in 2004 with the aim of forcing Airlines to compensate passengers for delayed or cancelled flights," explains Paul.  

"It was regarded as necessary in order to curb the then growing tendency for Airlines to overbook, flights leaving passengers bereft.  The European Parliament passed Regulation 261/2004 in order to provide such passengers with a guaranteed right to compensation.  This legislation now forms part of our domestic law and will apply to the vast majority of travellers whose journeys have been disrupted by the volcanic cloud."  

It is estimated that 95,000 flights were cancelled during the flying ban imposed by the National Air Traffic Service due to the ash cloud resulting from the eruption of the Icelandic volcano, during which time, some thousands of Britons were left stranded overseas, with many incurring substantial additional travelling and/or accommodation costs. 

According to Paul, this European regulation in fact applies to passengers who were due to depart from an EU Airport or to return to an EU Airport on board an EU Airline: "Unfortunately this means that anyone travelling back from outside the EU such as the USA, Australia or the Far East, will not qualify, unless they were booked on an Airline based in the EU, but this still represents a potential lifeline for many stranded travellers who are now seeking reimbursement for their out-of-pocket expenses.

"The Regulation allows travellers to claim reimbursement of the original ticket cost or to have their Airline arrange for them to be re-routed home at no extra cost.  Article 9 of the legislation provides that an Airline must compensate passengers for the reasonable cost of hotel accommodation, meals and refreshments occasioned by the cancellation or delay together with the cost of transport between accommodation and Airport.  

"This level of basic compensation is binding regardless of the cause of the delay or cancellation," says Paul, "but it is hard not to feel some sympathy for the Airlines who find themselves facing millions of pounds worth of claims through no fault of their own.  It remains to be seen whether the Government is prepared to assist the Airlines but the situation comes at the worst possible time - with Government finances already under pressure from the recession."  

He adds: "For those individuals like Gary Lineker, who returned from Tenerife via Madrid and then hired a car to the Channel ports in order to get back to the UK, unfortunately it is not such good news.  Regulation 261 does not cover these additional transport costs.  Ironically, however, those who decided to extend their holidays and spent the time kicking back by the hotel pool will be allowed to claim their additional costs.  So much for initiative!"  

Anyone who does not qualify for compensation under Regulation 261 can claim under their travel insurance but will find the vast majority of policies impose a cap on compensation of no more than a few thousand pounds.  Passengers who booked a package holiday will be fully protected under the Package Travel, Package Holidays & Package Tours Regulations 1992.  

For the stranded travellers who were unable to get into work, they could be in for a further nasty shock on pay day, as Paul explains: "When the weary returning travellers open their pay packets at the end of this month they may discover their employer has not paid them for the time they were absent without leave. Unfortunately, employers are, strictly speaking, entitled to withhold payment in such circumstances, whilst some will insist that the employee takes the additional holiday from their existing entitlement, but it is to be hoped that many will overlook the absence out of goodwill."  

Further information can be obtained from the Airtransport Users Council at www.auc.org.uk.