Following on from our post “Volcanic Cloud over Europe” where we explained your passenger rights:
the right to receive information from airlines (e.g. on your rights, on the situation as it evolves, cancellations and length of delays)
the right to care (refreshments, meals, accommodation as appropriate)
the right to chose between reimbursement of fares or be re-routed to final destination
In an exceptional circumstance such as this, passengers are not however entitled to additional financial compensation that would be the case where delays or cancellations are the fault of the airline.
To help limit the disruptions caused by the ash cloud the European Commission is ”setting up a group to assess the economic impact of the volcanic ash cloud from Iceland and said any steps taken across the European Union needed to be properly coordinated”. There will also be an emergency meeting of EU transport ministers.
You can find out more about European Air Traffic under normal circumstances at http://ec.europa.eu/transport/air/index_en.htm