Millions of Britons could lose the right to a cash refund for cancelled flights with the EU set to change consumer rights and force fliers to accept vouchers instead
- Transport ministers from twelve EU member states are attempting to block consumers’ legal rights to a refund
- Ministers said an amendment to the rules would protect airlines in event of bankruptcy
- Competition and Markets Authority investigating firms pressuring people to accept vouchers which can only be redeemed during more expensive periods
- Here’s how to help people impacted by Covid-19
Transport ministers from twelve EU member states are attempting to block British consumers’ legal rights to a refund for cancelled flights due to the coronavirus pandemic, to protect cash-poor airlines.
Ministers for Belgium, Bulgaria, Cyprus, the Czech Republic, France, Greece, Ireland, Latvia, Malta, the Netherlands, Poland and Portugal urged the European Commission on Wednesday to suspend rules that force grounded airlines to offer refunds instead of vouchers to customers.
A number of airlines in Europe, including Lufthansa and Air France-KLM, are currently seeking state-funded support after the pandemic grounded fleets indefinitely more than a month ago.
But increased customer complaints about holiday providers failing to issue refunds and pressuring them to accept vouchers which can only be redeemed during more expensive periods is now under investigation by the Competition and Markets Authority (CMA).
A small fleet of Lufthansa Boeing 747 aircraft parked silently at the airport in Frankfurt, Germany, on April 20
This aerial view shows a giant fleet of Lufthansa planes at Berlin Brandenburg International Airport in Schoenefeld, Germany, April 23
The twelve issued a joint statement to the EU’s executive body at a virtual meeting of transport ministers, saying the Commission should implement a temporary amendment to the rule ‘as a matter of urgency’, according to Reuters.
The dozen said consumers should be made to accept airline vouchers instead of refunds, with certain conditions.
However, the European Commissioner for Transport Adina Vălean has previously stated airlines must provide refunds for cancelled flights and can only offer vouchers if passengers accept them as an alternative.
Some EU member states also present at the Wednesday meeting opposed the proposal, ‘so as not to frustrate the legitimate expectations of passengers’, according to Reuters.
‘It’s incredibly concerning that a number of EU member states are asking to temporarily suspend consumers’ legal right to cash refunds for cancelled flights amid the coronavirus outbreak, not least when so many people are now in difficult financial situations of their own and need their money back,’ said Rory Boland, Editor of Which? Travel.
‘Not only would this move be bad news for consumers, it would be a disaster for tour operators waiting for payments to be returned by airlines in order to fulfil their own legal obligations to refund customers.
‘The UK government must urgently confirm that it will continue to support consumers’ right to cash refunds, and step in with support for the industry to allow them to fulfil this legal obligation.’
Locked down – An AirFrance fleet parked on the tarmac at Paris Charles de Gaulle airport, on April 25
As part of the terms under the proposed amendment, transport ministers said vouchers should be valid for a set period and include the right to reimbursement if not redeemed during that time.
The Competition and Markets Authority is investigating claims people are being pressured to accept vouchers for holiday accommodation, which can only be used during a premium period.
Transport ministers said the amendment would protect airlines in the event of bankruptcy, help airlines facing cash-flow constraints, and ‘allow a common and adequate level of consumer protection’.
The measures were tabled as part of a wider discussion on how to handle an easing of travel restrictions as EU nations’ economies reopen.
No decision was taken during Wednesday’s meeting.
Transport ministers also urged the Commission to present guidelines to the transport sector about sanitary measures that could be implemented across all EU nations to tackle Covid-19. The commission is expected to present the guidelines next week.