Ryanair fury at passenger compensation package
However, low-cost airline Ryanair has said it will not be offering free meals and drinks as demanded by the new rules.
Ryanair boss Michael O'Leary is furious with the new rules, describing them as anti-consumer and discriminatory.
The legislation is being appealed to the European Court of Justice by the two organisations representing the airline industry, the International Air Transport Association (IATA) and European Low Fares Airlines Association (ELFAA).
They claim it discriminates against the industry and will not achieve its objective of reducing the number of delayed and cancelled flights in Europe because most are caused by weather and conditions outside their control.
Every year about 200,000 people are bumped off flights because the airline has overbooked and many more suffer delays and cancelled flights.
But from Thursday passengers will be entitled to a new flight and compensation of between €250-600, depending on the distance of the flight.
Those whose flights are cancelled will be entitled to the same compensation together with food, refreshments, accommodation and the offer of a refund.
Passengers suffering severe delays will also have to be offered food, refreshments and accommodation if necessary and if the delay is more than five hours, they must be offered their money back.
Ryanair boss Mr O'Leary said the rules are anti-consumer. "Competing forms of transportation such as trains, buses and ferries are exempt from this crazy compensation bonanza," he said.
He claims it is doubly discriminatory against low fares airlines like Ryanair whose average fare is 38 far less than the compensation on offer.
Such low fares are available on the basis that the airline does not have to build in an allowance for hotels, meals, drinks or other assistance.
"A hotel bill alone will dwarf Ryanair's fare and this runaway compensation culture in the Commission will clearly lead to higher fares and less choice for consumers," he said.
Mr O'Leary believes it will not have any impact on delays and cancellations as he said the vast majority of delays are completely beyond the control of the airlines. He added that Ryanair has a policy of not overbooking their flights.
Aer Lingus too is unhappy with the new deal for passengers, especially for those who have been overbooked. They are party to the appeals going to the European Court.
The new regulations apply to scheduled, charter, domestic and low-cost carrier flights. Member states are being asked to set up national organisations to handle passenger complaints.
