http://www.travel.telegraph.co.uk/tr...%2Fetsoph4.xml

European Union rules state that passengers should
be offered three options in such a case: a full
refund, re-routing at the earliest opportunity, or
travel at a later convenient date.

Whatever you decide, the airline should immediately
pay you compensation of 150 euros (£90) for
short-haul flights (less than 3,500 kilometres, or
2,175 miles) or 300 ecus (£180) for flights of more
than this. However, this amount will be halved if the
airline can get you to your destination within two
hours (short-haul) or four hours (long-haul) of the
original arrival time.

The compensation must be paid in cash - or in travel
vouchers if you prefer - but it should not exceed the
price of the fare paid. Airlines are also obliged to
meet any costs incurred because of your delay, such
as telephone calls, refreshments and hotel
accommodation, if necessary.

If you have booked in business class and there are
only seats left in economy, you can agree to be
downgraded and claim back the difference between
the two fares, but you are not eligible for
compensation.