US DOT Clarifies Flight Refund Rules

[drivatruk]

Was reading some of the the US blogs just now and it seams that DOT has told the airlines that vouchers or credits cannot be forced on to Pax with flights cancelled or with significant schedule changes.
This involves all airlines flying into and out of the USA. It also says and one who has taken a voucher or credit for these flight must be contacted by the airline and offered a full refund.

• The DOT has seen an increase in consumer complaints related to flight refunds
• Customers are entitled to a cash refund when the airline cancels a scheduled flight or makes a significant schedule change and the passenger chooses not to accept the alternative offered
• This applies for flights operated by US and foreign airlines to, within, or from the United States
• Because this is an unprecedented situation, the DOT will exercise enforcement discretion, and will give airlines the opportunity to become compliant before taking further action

The Department of Transportation’s enforcement notice to airlines emphasizing that “passengers should be refunded promptly when their scheduled flights are cancelled or significantly delayed. ” The notice specifically says that COVID-19 is not an excuse.

DOT is telling airlines that continuing to deny refunds for cancelled flights and significant schedule changes is “a violation of the carriers’ obligation that could subject the carrier to an enforcement action.”

However the government will not act against airlines that have improperly refused refunds already provided:

1. “the carrier contacts, in a timely manner, the passengers provided vouchers for flights that the carrier cancelled or significantly delayed to notify those passengers that they have the option of a refund”
   
   
   
2. “the carrier updates its refund policies and contract of carriage provisions to make clear that it provides refunds to passengers if the carrier cancels a flight or makes a significant schedule change”
   
   
   
3. “the carrier reviews with its personnel, including reservationists, ticket counter agents, refund personnel, and other customer service professionals, the circumstances under which refunds should be made.”

this info is from the view from the wing blog.

 

[albatross710]

1. “the carrier contacts, in a timely manner, the passengers provided vouchers for flights that the carrier cancelled or significantly delayed to notify those passengers that they have the option of a refund”

Would have to think that the carefully worded Qantas communications do not meet this criteria. From QF corona webpage on options. Hard to find the word 'refund' in an airlines vocab.

If you're due to travel on a Qantas flight before 31 July 2020 and wish to change your plans, you can cancel your booking and retain the full value as a flight credit.

 

[Mattg]

A lot of airlines are trying to force vouchers onto customers at the moment, not only in the U.S.

Qantas and Jetstar's policies are that you'll get a refund if the airline has cancelled your flight, but you have to specifically ask.

Virgin is trying to avoid giving refunds at all costs, but I suspect this is not legal. I've read through the VA conditions of carriage, and they say that you may be entitled to a refund under Australian Consumer Law. Under ACL, you would of course be entitled to a refund if your flight has been cancelled, and these laws continue to apply. I suspect Virgin will keep getting away with doing what it's doing, though, until somebody takes them to court.

 

[MEL_Traveller]

A lot of airlines are trying to force vouchers onto customers at the moment, not only in the U.S.

Qantas and Jetstar's policies are that you'll get a refund if the airline has cancelled your flight, but you have to specifically ask.

Virgin is trying to avoid giving refunds at all costs, but I suspect this is not legal. I've read through the VA conditions of carriage, and they say that you may be entitled to a refund under Australian Consumer Law. Under ACL, you would of course be entitled to a refund if your flight has been cancelled, and these laws continue to apply. I suspect Virgin will keep getting away with doing what it's doing, though, until somebody takes them to court.

The ACCC is saying that under Covid, normal ACL laws may not apply, or may be affected.

The ACCC has said that a voucher or credit is acceptable under the current circumstances, unless there are contractual arrangements otherwise.

Virgin's policies, which are referred to in their conditions of carriage, are set out here: Consumer Guarantees and Refunds - Understanding your rights | Virgin Australia

These imply a distinction between events within, and outside, the airline's control - ie, what constitutes a 'major fauilure' which would trigger a refund under ACL.

Those policies are, of course, the airline's interpretation of the ACL. State Consumer Affairs offices may be able to provide additional information to affected passengers.

Virgin's CoC are different to QF's, the latter of which does not make the distinction between when they will and won't provide a refund.