Financial Times FT.com

Airlines balk at Brussels rescue fund plan

By Nikki Tait in Brussels and Pilita Clark in London

Published: November 25 2009 22:44 | Last updated: November 25 2009 22:44

Airlines across Europe reacted sharply on Wednesday night to moves in Brussels to force them to set up a compensation fund for passengers stranded by failed carriers. They said that the move would be a costly response to an “infinitesimally small” problem.

Meglena Kuneva, European Union consumer commissioner, is on Thursday expected to call for the extension of rules on insolvency protection to cover holidays and airline tickets people book for themselves on the internet.

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