PASSENGER COMPENSATION for delays and cancellations was the subject of a British High Court ruling last week on the case against the new EU regulations that could hit airlines hard on matters that they believe are outside their control. The whole argument now goes forward to the European Court of Justice (ECJ), but as the European Regional Airlines Association (ERA) points out but there is no certainty that the ECJ will treat the case as priority. If the ECJ accepts the need for urgency, there may be a ruling before the regulation becomes effective in February 2005. Missing this date means that, even if the regulation is later overturned, airlines will be unable to recoup the massive costs it will impose in the interim. IATA, which represents some 270-member airlines, argues that by making airlines compensate for situations beyond their control, such as bad weather or air traffic control delays, the regulation would be inconsistent with the Montreal Convention limiting a carrier's liability in extraordinary circumstances.