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The European Union's Court of Justice is due to pass judgement on case brough against Ryanair by a number of passengers in a claim for compensation.
The outcome is being watched closely by the airline industry incase it sets a presedent for compensation payment liabilities if flights are cancelled and airspace closed due to natural events in future.
The erruption of the Icelandic Volcano in March of 2010 resulted in a build up ash clouds over Europe which eventually caused European airspace to be closed between 15th-23rd April, thousands of flighst being cancelled and weeks of disruption.
As a result many passengers attempted to file compensation claims against Ryanair for their flights being cancelled. However, given that the Irish Aviation Authority held that as airspace had been closed due to "extraordinary circumstances", Ryanair maintained that according to article 7 of EU airline regulations, passengers were therefore not entitled to claim any damages for delays or cancellations.
The passengers in turn pointed to article 9 of the same regulations, which states that "care and assistance must be provided by an airline in the event a flight has been delayed, even due to extraordinary circumstances", which is claimed was not forthcoming from the airline.
This help and assistance should include any required accomodation, which was neither offered nor provided by the airline.
Given the scale of the situation, Ryanair has argued that the closure of airspace went beyond extraordinary circumstances and that it shouldn't be liable for associated passenger costs.