Airlines wing it on refunds as new rules considered
Don’t expect an easy landing when it comes to claiming cash back for a flight booked before the pandemic
Travellers fighting for refunds are being met with a chaotic response from airlines, hotels and tour operators. Many can’t get through to their airline let alone get their money back. Here’s where you stand. It’s complicated! Would you fly to Madrid right now? Just last week Aer Lingus was offering bargain flights to the Spanish capital for €49. But just who would want to enter the lockeddown epicentre of the deadly global health crisis we are in?
Portugal is also in a state of emergency and has closed all of its hotels and accommodation as a preventative measure against the virus.
‘There were still flights operating from Dublin to Faro, which means that customers who had booked holidays in Portugal will not be offered a refund on their flights, but would have no accommodation available when they arrive in the country,’ warned the Irish Travel Agents Association (ITAA).
If you have flights booked to the US, you are in a similar bind. ‘Currently, Irish citizens are not permitted to enter the United States. However, there are still flights operating this week from Dublin to various US destinations. Many of these planes are flying to their destinations with little or no passengers on board,’ the ITAA said.
Why on earth would they do that? The cynics among us might speculate about one obvious answer. Under EU261, a European law, passengers must be given a full refund by an airline if the flight is cancelled. But crucially, this is only if the flight is cancelled by the airline, not the passenger.
‘Customers who had booked tickets to these destinations before the widespread outbreak of the virus are therefore not entitled to refunds, as flights are still in operation,’ said the ITAA.
So as long as the airline continues to fly into zones where no sane person would go now or would even be allowed to go, it doesn’t have to refund passengers who chose not to travel.
Aer Lingus plainly admits flying to trouble spots and seems to fob passengers seeking refunds off on travel insurers. Its website states: ‘If your flight is proceeding as planned but there is a government issued restriction or warning against travel to your destination , you should contact your travel insurer to seek a refund in accordance with the terms of your travel policy.’
The Consumer’s Association of Ireland agreed that travel insurance can cover cancelled flights into troubled zones even if the airline continues to fly there. Chief executive Dermott Jewell said: ‘This is where insurance comes into play… (but) as you’ve heard on the news, the insurance companies are being decidedly difficult.’ He warned of signs of a new dog-eat-dog attitude in business where consumers lose out, citing the ‘exceptionally frustrating’ example of Aer Lingus continuing to fly to the US despite travel restrictions.
‘Despite the fact that EU citizens will have enormous difficulties when they land in the US – nonetheless, if they decide not to risk their health or not to travel they will not receive a refund,’ he said. ‘In general, survival of the fittest
seems to be the mantra and so the options are being interpreted to the letter of the contract detail and no more.’
The head of Blue Insurance has suggested travel insurers may legally challenge airlines who fly ‘ghost flights’ to avoid refunds, which would further complicate this sorry mess. ‘Flying ghost flights for cargo reasons or to avoid offering refunds is not acceptable... ,’ said Ciaran Mulligan. ‘We are starting to see airlines offer refund or vouchers plus 10 per cent so I expect most airlines will change their stance soon’.
Aer Lingus confirmed to the MoS that it ‘continues to operate a reduced schedule to Europe and to a small number North American destinations for repatriation reasons and transport of freight’.
The airline stated: ‘Guests that booked on aerlingus.com and are due to travel up to 31st May 2020, can change their booking without incurring a change fee or apply for a voucher for the full value of their travel, including taxes and charges, plus an additional 10 per cent.
‘These options are also available if a flight is cancelled. In addition, where a flight is cancelled (by the airline), Aer Lingus will provide refunds in accordance with its legal obligations.
‘If a flight is proceeding as planned and there is a government-issued travel restriction or travel warning, guests should contact their travel insurer to seek a refund in accordance with the terms of their insurance policy.’
So what about Ryanair? It has at least given clarity to passengers as far as refunds are concerned by grounding their fleet. Typically this would mean that passengers are due refunds.
However, how soon, or if, they will get them is unclear. The airline’s online refund form was down for days before being fixed. But on Friday, The Irish Times reported that the airline was pushing passengers to accept vouchers for now, just like most airlines. Ryanair did not respond to a request for comment.
So where do we stand with other airlines and travel companies? A number, including Tui and Volotea, are offering refunds via their call centres.
But frustrated customers have taken to social media to vent their frustrations with Easyjet and BA, for example. They have been particularly annoyed after both airlines removed the option of a cash refund from their websites recently, meaning many have had to spend hours on the phone chasing refunds to which they’re entitled. Deluged by complaints, the Irish Travel Agents Association said it is ‘seeking clarity’ from the Government for their customers in relation to flight refunds.
‘Our member travel agents are working hard to assist customers by securing refunds and changing travel arrangements where possible, but it would be a lot easier to do this if there was less ambiguity surrounding flight refunds.’
Transport Minister Shane Ross is reportedly rushing through measures to deal with this issue.
But it is complicated and fast evolving. With airlines facing a $252bn loss of passenger revenue if travel restrictions last for up to three months, many simply can’t refund passengers if that entire period is shut down.
There is speculation that the Gov
ernment is about to allow airlines to forego legal obligations to refund passengers and offer vouchers instead, at least for now.
But that’s not quite satisfactory either from the consumers’ standpoint. What if you have a family and booked a one-off flight when you were free and flush with cash? You may have lost your job, and now can’t afford childcare or a new holiday anywhere.
Vouchers are not also covered by the travel agents bonding scheme.
So if the airline in question goes bust, you could lose out. To sum it all up: yes, you are, or at least were, entitled to a refund, but airlines are deluged with demands they can’t seem to process let alone afford to pay.
Crucially speculation is rife that the Government may step in and allow them to give you vouchers instead of a refund – at least for the moment. So watch this (air) space.