The Ryanair-backed European Low Fares Airline Association (ELFAA) has succeeded in its High Court action to refer a new EU directive on passenger compensation to the European courts.

The High Court in London yesterday referred to the European Court of Justice (ECJ) the European Low Fares Airline Association’s (ELFAA) legal challenge to EU Regulation on Air Passenger Compensation for denied boardings, long delays and cancellations.

RYANAIR has joined with other European low-fares airlines to challenge new European Union legislation guaranteeing compensation to passengers who are denied boarding or are subject to flight delays or cancellations.

RYANAIR believes it will have to pay out millions of euro as its worst fears have been confirmed in its "state aid" battle with the EU Commission, which could also impinge on the future growth of Cork, Shannon and Dublin airports.

RYANAIR has failed to persuade its main competitors to join its planned lobby group for European low-cost airlines.