KLM still holding back compensation for volcanic ash delays

Hundreds of British travellers await compensation by the Dutch airline.

Travel Insurance News - 16/08/2010

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Hundreds of Brits who suffered delayed flights during the volcanic ash-cloud crisis are still being forced to wait by Dutch airline KLM for compensation they are legally-owed. EU rules say airlines must pay passengers compensation for the cost of lodging and meals covering the entire time travellers are stranded. KLM says it will not pay for more than 24 hours. The European Union has threatened the airline with legal action unless it complies with the rules on compensation.

KLM says it restricted payouts so it could ensure a quick resolution for thousands of KLM customers left stranded across Europe. In total, hundreds of thousands of air passengers were hit with travel delays and suspensions after a huge cloud of volcanic ash from an Iceland caused the closure of European airspace for 18 days throughout April and May.

EU regulations say airlines must reimburse passengers for reasonable costs of accommodation and meals incurred because of flight delays. Some passengers were stranded for more than a week and ended up paying thousands of pounds in bills. As a response to complaints by KLM passengers that they still have not received compensation, the European Commission sent the Dutch carrier a formal warning that the airline will face legal action if it refused to comply with the regulations.

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