The EU has approved a new regulation strengthening the rights of air passengers despite opposition from Ireland and the UK and claims by low-cost carriers that it will lead to a rise in seat prices.

The Council of Ministers yesterday formally adopted the Bill, which will see passengers who are bumped off their flights receive increased compensation from offending airlines.

Drawn up by the European Commission, the Bill sets compensation of €250 for flights of less than 1,500 km, €400 for those of 1,500-3,000 km and €600 for all others. Passengers subjected to a long delay or cancellation, or who are otherwise denied boarding, will also be entitled to free food and drink and access to a telephone.

The Irish and British governments voted against the Bill, which had already been passed by the European Parliament, while Germany abstained.

Low-fares carriers, led by Ryanair, had lobbied strongly against the move, saying it made no allowance for problems outside their control.

The issue is due to be taken up by a new association of low-fare airlines, headed by Ryanair and Germany's Hapag-Lloyd Express, which will be formally launched today. The alliance has been set up in opposition to the Association of European Airlines, of which Ryanair chief executive Mr Michael O'Leary has been a constant critic.

Confirming passage of the new regulation, the EU Commissioner for Transport and Energy, Ms Loyola de Palacio, said air passengers were too often the victims of practices for which they should receive fair treatment and proper compensation. "The passenger rights action is of the major initiatives of the Commission to put citizens at the heart of EU policies," she said.

The new regulation is due to come into force in spring 2005.