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UK aviation regulator is threatening legal action in an effort to force the airline to pay out correct compensation requests.

Aviation Authority sets deadline of 5pm UK Time Friday.

Ryanair must correct and update its policy relating to compensation for passengers in response to the firm cancelling thousands of flights.

The company, which is reknowned for its cavalier approach to rules and regulations, has a responsibility to either;

  • refund passengers
  • rebook passengers
  • transport passengers via competitor airlines - even if at a greater cost

The Irish carrier, led by the devisive Michael O'leary, has flagrantly gone to lengths to avoid the latter option, something which the UK's Civil Aviation Authority has taken great exception to.

The CAA has issued Ryanair with a deadline of 17:00 BST to comply with regulations, or "enforcement action" would be commenced through the UK's legal system.

Unlike with British registered carriers, where the CAA has considerably more power, Ryanair is an Irish-registered airline, and does not fall under the regulatory remit of the CAA.

The UK's aviation regulator therefore, can only launch action against the airline through the auspices of UK and EU law.

Ryanair has been cancelling thousands of flights a problem blamed on rostering pilot holidays, has seen hundreds of thousands of passengers disrupted across Europe, with the airline now expecting the problem to last into 2018.