Michael O'Leary, the Ryanair chief executive, said that the airlines should not be held responsible for the reimbursement of passengers' hotel accommodation in case the flights are delayed or cancelled.

He added that he will challenge the EU laws that expect an airline which is getting a fare of €30 to spend thousands of euros on passengers' hotel and food bills.

Ryanair will reimburse only the original price of the air fare to the passengers.

Europe-wide regulations require that airlines should provide food and drinks and hotel accommodation in case the passengers are stranded.

But O'Leary challenged the law of Ireland's airline regulator, the Commission for Aviation Regulation.

This step of Ryanair could save millions of pounds of airlines but could potentially affect nearly 400,000 passengers.

European and international airline industry bodies also raised their voice against regulations and demanded a review of law as airlines should not be intended to pay in case of any extraordinary situations like eruption of volcano.

Chief executive of the Board of Airline Representatives said that the regulations are intended to be applicable when airlines have individual delays or cancelled flights.