The European Commission's recent report into the operation of the regulation suggests that some member states do not yet have the power to impose penalties on airlines. The document is available on the internet at the following address:
http://ec.europa.eu/transport/air_portal/passenger_rights/information_en.htm
Copies have been placed in the Libraries of the House.
I can confirm that the UK is complying with Regulation (EC) 261/2004 which provides compensation and assistance to air passengers in the event of denied boarding, cancellation and long delay to flights.
The Commission commenced infraction proceedings against the UK in December 2006 as it believed the UK’s complaints handling policy favoured UK residents over non-UK residents. This has now been resolved so that all complaints are handled in the same way while maintaining the service provided to UK residents. The Government believe that the infraction proceedings will not be taken forward.