Originally posted by terenz:
There are some European Union directives that have been developed. It's in the form of cash or vouchers for given hours of delay. Not particularly generous.
http://www.travel.telegraph.co.uk/travel/main.jhtml?grid=T6&xml=%2Ftra vel%2F2000%2F12%2F04%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.
It is not the fare paid, but the OW fare which is the limit, otherwise you would not get any compensation on a award ticket for instance.
It is the passengers decision, if he chooses
vouchers or the money, but often airlines offer more in voucher (since they are basically free for them), so that most people
go for the vouchers.