The European Commission has, since 2005, assured your rights as an airline passenger when airline companies do not meet their contractual obligations. This legislation, known as EC Regulation 261/2004, protects the rights of passengers in the case of cancellations, re-routing, delays and denied boarding.
The implementation of this regulation has in reality not been so simple. Airlines hide behind the extraordinary circumstances clause and when they do agree to pay a financial compensation, this often happens in the form of vouchers for future ticket purchases.
This goes against the rules of the EC Regulation. Airlines ARE OBLIGED to offer passengers information describing their rights when faced with delays, cancellations, denied boarding or re-routing. This seldom happens resulting in passengers not receiving the proper care and assistance they are entitled to. This site gives an accurate explanation of what YOUR RIGHTS are.
EU Regulation 261/2004 applies to all flights within the European Union, all flights departing from the EU to a country outside the Union, regardless of country of registration of the airline, and all flights arriving in an EU country and carried out by a European airline.