Ryanair agrees to ash compensation

Budget airline Ryanair has ended its defiance of EU regulations by agreeing to fully compensate its passengers caught up in the ash-cloud crisis.

The Irish no-frills carrier's chief executive Michael O'Leary said on said on Wednesday he would only reimburse travellers the original price of their air fare and no more.

But now the airline said that it would comply with the regulations under which EU airlines are required to reimburse the "reasonable receipted expenses of disrupted passengers".

Ryanair chief executive Michael O'Leary had sparked fury by saying he would only reimburse travellers the original price of their air fare and no more.

UK airports are open and trying to cope with the influx of tired passengers.

Mike Carrivick, chief executive of the Board of Airline Representatives which represents more than 90 airlines, also said the EU regulations were "unfair" and were never intended to cover cases such as the ash cloud crisis.

Transport Secretary Lord Adonis denied the decision to reopen UK airspace - made by the Civil Aviation Authority (CAA) - had been based on pressure from airlines.

However, he admitted that the Government was "too cautious" in keeping airspace closed.

CAA chief executive Andrew Haines said he "made no apologies" for UK airspace being closed for so long and added that any inquiry into the crisis would support the CAA's actions.