Helping the Airlines

Tim Worstall has a post on the regulations concerning compensation for getting delayed or bumped off a flight.

There’s the problem. The compensation rates are fixed, fixed at a level which makes sense only in light of the charges made by the legacy airlines for their full price seats. If you’ve bought a 10 pound ticket on Ryan Air (motto, "No fu**ing refunds, what part of that don’t you understand?") why on earth should you get 300 quid compensation if they’ve over booked it?

A paranoiac would wonder if the legacy airlines were actual the people who wrote this legislation. What impact do they really think this will have on prices?