Carriers including Ryanair and easyJet said such payouts would cost the industry £400 million a year and force up ticket prices.
But the European Court of Justice threw out their challenge to legislation brought in by the EU last February.
Under the scheme, cancellation compensation is set at £173 for flights of fewer than 920 miles.
Payments rise to £277 for flights of up to 2,147 miles and £415 for long-haul trips.
01-01-2006 WATCHDOG SLAMS BA’S AIR SAFETY BRITISH AIRWAYS jets have suffered mid-air failures because of “systemic” problems with their maintenance, air accident investigators have revealed.
After inquiries into four mid-air incidents, the investigators say that there are safety problems that may be “widespread within the organisation”. They warn that it appears that shoddy working practices are accepted as the norm by some maintenance staff.
The Transportation Security Administration plans to train screeners at 40 major airports next year to pick out possible terrorists by engaging travelers in a casual conversation to detect if a person is lying and needs extra scrutiny.
The new security technique, already in use at some airports, adds a psychological dimension to screening by trying to find high-risk passengers based on their behaviour at checkpoints or boarding gates.
13-12-2005 Collision on the tarmac leads to panic in mid-air Form Chris Ayres in Los Angeles
A BAGGAGE lorry driver who crashed into an airliner on the ground caused a mid-air emergency when the dent he created exploded into a gash in the side of the fuselage at 26,000ft.
The pilot of the Alaska Airlines MD80 flight from Seattle to California was forced to make an emergency landing when the 12in x 6in hole caused a sudden loss of cabin pressure 20 minutes after take-off.