Whilst no one can deny that the EU are just trying to have the passenger's best interests at heart (well, I hope so) it all seems a bit impractical (like many things that come out of Brussels it would seem).
Who decides who/what is responsible for a delay or cancellation? What about strikes? What about ATC? Knock-on effects of weather? Diversion for medical/disruptive pax?
I thought the whole point of low-cost airlines was that they charged you a lot less WITHOUT the frills....
Why not allow the pax to decide? If people don't think they're getting value for money, they will vote with their feet, and the airline(s) will go to the wall. On the other hand, perhaps some are willing to forfeit compensation for delays/cancellations if the "price is right" (no choice with trains or buses!)
In any case, Ryanair don't overbook or cancel for commercial reasons anymore. I'm not sure about the others, but I suspect it's the same (barring the recent events at easy).
Yes, it's a bummer when your flight is seriously delayed or even cancelled, but I'd rather suffer the unlikely event of having to pay an extra night's hotac than seeing the low-cost airlines gone for good.....
Perhaps a 'free flight' (including taxes
) might be more acceptable compensation for all?