BA pays out for cancelled flights

British Airways is freezing staff pay and recently reported a £70m loss

Passengers who had flights cancelled by British Airways have received payouts from the airline following a new ruling from the European Court of Justice.

The Times newspaper reports that the group compensated includes 21 Britons, and that each passenger received an average of £388.

And the terms of the new ruling mean it might face further costly claims.

BA reported a £70m loss in the first nine months of its financial year and is seeking voluntary redundancies.

The new ruling, which came about following a case involving the Italian flag-carrier Alitalia, states that airline passengers are entitled to compensation when a flight is cancelled because of a technical fault.

Under EU law, airlines are obliged to offer compensation to passengers for cancelled flights, unless they offer alternative travel arrangements or if extraordinary circumstances apply.

We continue to comply with the relevant European legislation and will always look at each claim that is made against us on its individual merits BA spokesman

Consumer groups and the European Commission have accused airlines of abusing the "extraordinary circumstances" clause to avoid paying redress. But that clause is no longer available to explain away technical faults.

A British Airways spokesman said: "We continue to comply with the relevant European legislation and will always look at each claim that is made against us on its individual merits.

"In light of the recent European Court of Justice ruling about the definition of what constitutes a technical fault regarding a flight cancellation by Alitalia, we reviewed a very small number of cases made against us and agreed to settle their claims, without admitting liability.

"This ruling applies to all EU-based airlines and to all airlines when operating a flight out of an EU country."