Readers with long memories will recall that we were stranded in Lviv, Ukraine by the ash cloud crisis last April and had a long minibus trip accross Europe. The minibus was arranged by Lufthansa but we were required to pay 215 Euros each in cash but were assured that this would be refunded when we got home. This seemed strange to me and now I know why.
On 5th May, we wrote to Lufthansa Customer Feedback in Liverpool to claim this refund and other incidental expenses. Lufthansa simply didn't bother to reply until the 27th July.
"In this case we have provided reasonable care. We therefore see no obligation to cover the costs of additional hotel accomodation or onward travel.
With regards to your ticket; you may be eligable for partial refund of the unused flight coupon. As your ticket was booked through a travel agent, we would advise you to contact your agent directly in order to be reimbursed for this ticket."
In March we travelled to Poland with Ryan Air and I understand that after government pressure they played by the rules in the ash cloud crisis. I had regarded Lufthansa as a reputable airline until this incident but now my advice is avoid Lufthansa.
The Ryan Air web site sets out their interpretation of the EU Regulation and their view seems to be the same as Lufthansa. http://www.ryanair.com/en/notices/gops/100414-EU261_ENTITLEMENTS-GB