Transport minister Theresa Villiers has sent a message to airlines that they should not expect ash cloud compensation packages.
She told a Westminster ash cloud meeting that with stark government cuts in sight she did not want to “raise false hopesâ€.
She added that even if the money was in the pot for airlines, there would still be a need for European clearance for state aid.
Airline heads met Transport Secretary Philip Hammond recently to push for compensation, telling the politician that the CAA had acted far too hastily in closing off air space for so long.
Â
Villiers has admitted that grounding planes at length was not a workable long term solution but said the CAA was simply reacting to cautious words from airplane manufacturers.
Â
A European transport ministers meeting is scheduled for later this month and Villiers said the ash cloud would be on the agenda for discussion.