easyJet, Europe�s leading low-fares airline, called on the European Commission to review new EU rules for air passenger compensation following today�s ruling in the European Court of Justice. The new EU rules were introduced last year in order to deter airlines from the odious practice of overbooking and making commercial cancellations.

Instead the new EU rules went much further than their intended objective and were branded by the world�s airlines as an incredibly poor piece of legislation for four reasons:

The rules make airlines responsible for events outside of their control, including weather and air traffic control problems, when the majority of delays and cancellations are due to such factors.

The rules are particularly discriminatory to airlines offering low fares as they impose a flat rate of compensation, the levels of which represent easyJet�s highest fares and beyond. The rules were introduced without fully consulting the industry or carrying out an economic impact assessment to ensure they are workable.

The European Commission�s own information leaflet on the new rules is misleading in suggesting that passengers are entitled to financial compensation for all cancellations.

Two airline associations, ELFAA and IATA, challenged the new EU rules before the European Court of Justice. Today�s verdict confirms the stalemate faced by airlines as regards the EU�s approach to legislation. easyJet has always championed passenger rights as seen through our great fares and making flying as easy as possible through constant innovation. The EU compensation rules make clear that the EU does not value low-fares and fairness between modes of transport. This is why easyJet is calling on the EU to take a close look at its failings in air transport. When you consider the shocking amount of taxpayers money that goes to propping up fledgling national airlines, it makes it all the more sour for easyJet to be penalised for offering consumers what they want: a highly affordable and reliable service to great destinations across Europe.

easyJet is therefore calling on the European Commission to immediately review its new rules on passenger compensation with a view to amending the legislation in order to make it workable and fair on airlines by:

o exempting airlines from having to pay out for events outside of their control or at least compensating airlines themselves where disruption is caused by air traffic control, airports, strike action and government measures.

o making financial compensation proportional to the fare paid

o ensuring passengers enjoy the same rights across all modes of transport

easyJet is not calling for less passenger rights but for better rules that make sense and do not penalise some carriers unduly or one mode of transport over another. Toby Nicol, easyJet Director of Communications, said:

��I simply do not understand why easyJet should pay �250/�172 in financial compensation when our passengers pay on average �60/�42 or why easyJet should pay for hotels when a Government decides to close airspace for a big event. The majority of delays are due to air traffic control, something the EU actually governs and yet airlines cannot seek any form of compensation for the poor performance of Eurocontrol. The European Commission is trigger happy to penalise low-fares airlines when it turns a blind eye to the billions of euros that go into carriers like Alitalia or Olympic Airlines. Meanwhile, tube and rail operators have no such obligations whilst more billions keep pouring into their infrastructure. I hope passengers appreciate the nonsense that this situation represents for easyJet.��

Working with other airlines, easyJet will be seeking serious improvements to one of the EU�s worst pieces of legislation. In the meantime, easyJet passengers can rest assured that they remain under good care when travelling with easyJet. Whilst easyJet fundamentally disagrees with the EU�s burdensome provisions, we certainly support the need to provide our passengers with assistance and compensation where due and passengers flying easyJet will continue to enjoy their statutory rights. Nevertheless, easyJet�s policies remain more generous than the EU rules in some regards (e.g. as we offer passengers a re-route or a credit after one hour�s delay).

Notes to editors:

The legal challenges: Industry associations have taken the lead in defending individual airline interests as regards these EU regulations. easyJet joined ELFAA (European Low Fares Airlines Association) on 1 October 2005 and as such is not part of the legal challenge that was brought before the UK High Court in May 2004 and then referred to the European Court of Justice. ELFAA members include: easyJet, Flybe, Hapag-Lloyd Express, Norwegian, Ryanair, Sky Europe, Sterling, Sverigeflyg, Transavia, and Wizzair.

easyJet has no involvement with IATA(International Air Transport Association).

Whilst keeping all options open, easyJet is not considering legal action of its own as the airline industry is fully united on this issue.

The European Commission�s information leaflet:

The European Commission�s information leaflet to passengers informing them of their new rights (available on http://europa.eu.int/comm/transport/air/rights/info_en.htm stipulates under the section dealing with cancellations:

��The airline may have to compensate you, at the same level as for denied boarding, unless it gives you sufficient advance notice.��

This is completely misleading as the EU regulations clearly stipulate that financial compensation for cancellations does not apply when caused by extraordinary circumstances (Article 5.3) and the leaflet makes no mention of this exemption:

��An operating air carrier shall not be obliged to pay compensation in accordance with Article 7, if it can prove that the cancellation is caused by extraordinary circumstances which could not have been avoided even if all reasonable measures had been taken.��

Extraordinary circumstances are defined in the legislation�s preamble as:

��As under the Montreal Convention, obligations on operating air carriers should be limited or excluded in cases where an event has been caused by extraordinary circumstances which could not have been avoided even if all reasonable measures had been taken. Such circumstances may, in particular, occur in cases of political instability, meteorological conditions incompatible with the operation of the flight concerned, security risks, unexpected flight safety shortcomings and strikes that affect the operation of an operating air carrier.��

Press Offices:

For any queries regarding the ELFAA legal challenge, please contact the ELFAA Press Office on +44 (0)207 025 6683.

For any queries regarding easyJet�s views and policies on the EU passenger compensation rules, please contact the easyJet Press Office on +44 (0)1582 52 52 52 (or local information)

Please note that easyJet has no comment to make on any costs associated with the new EU rules as the airline�s disruption costs constitute company confidential information.

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For more information contact the easyJet Press Office.

Tel: 01582 52 52 52

easyJet is Europe's leading low-fares airline, currently operating 110 aircraft on 245 routes between 68 airports, in 17 European countries. The airline carried over 30 million passengers during 2005.

easyJet flies to: Aberdeen, Allocate, Algeria, Amsterdam, Asturias, Athens, Barcelona, Basel, Belfast, Berlin, Bilbo, Bournemouth, Bratislava, Bremen, Bristol, Budapest, Cagliari, Cologne, Copenhagen, Cork, Doncaster Sheffield, Dortmund, Edinburgh, Faro, Geneva, Glasgow, Grenoble, Hamburg, Ibiza, Inverness, Knock, Krakow, Lisbon, Liverpool, Ljubljana, London Gatwick, London Luton, London Stansted, Lyon, Maastricht, Madrid, Mahon, Malaga, Marseille, Milan Linate, Milan Malpensa, Munich, Murcia, Naples, Newcastle, Nice, Nottingham East Midlands, Olbia, Palermo, Palma, Paris Charles de Gaulle, Paris Only, Pisa, Prague, Riga, Rome, Shannon, Tallinn, Toulouse, Turin, Valencia, Venice, Warsaw.

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