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It's the short name for European Regulation (EC) No 261/2004, the EU law that says airlines have to pay you cash compensation when they delay, cancel, or overbook your flight (within their control). €250 for short flights, €400 for medium, up to €600 for long-haul. It applies to any flight departing from an EU airport, and to flights arriving in the EU operated by an EU airline. You don't need to know the details, that's what we're for.