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THE EUROPEAN COMMISSION has said airlines must give passengers refunds for cancelled flights, and that vouchers alone won’t do.
The commission, which has been under pressure to change regulations, said that under EU rules, travellers have the right to choose between vouchers or cash reimbursement for cancelled transport tickets.
“We cannot judge on the economic situation of the individual…this is why we say this is your right, full stop,” executive vice-president of the commission Margrethe Vestager said during this morning’s press conference on resuming travel and rebooting Europe’s tourism sector.
Vestager said that letters are being sent out to member states “as we speak” to remind them of this right.
The EU body had been under pressure to change the rules on how airline passengers can be refunded for cancelled flight in order to solve current cash flow constraints of airlines.
The Irish government was among 13 member states who co-signed a letter calling for the commission to temporarily allow airlines to issue vouchers instead of refunds to passengers whose flights have been cancelled due to the Covid-19 pandemic.
Under EU Regulation 261/2014, airlines must reimburse passengers whose flights are cancelled the choice of a refund or a re-routing within seven days.
But the member states – Ireland, Belgium, Bulgaria, Cyprus, the Czech Republic, Greece, France, Latvia, Malta, the Netherlands, Poland, and Portugal – claimed current rules place airlines in a difficult situation, particularly as many are facing financial difficulties.
The letter follows complaints from customers that Ryanair and Aer Lingus had joined a number of other airlines across the continent in primarily offering vouchers to those whose flights had been cancelled.
Passengers were told they would have to wait until the Covid-19 pandemic had passed before applications for refunds would be considered.
‘Consumers can be reassured’
The commission has recommended that airlines ensure vouchers become a viable and more attractive alternative to reimbursement for cancelled trips and should be protected against insolvency of the issuer, with a minimum validity period of 12 months, and be refundable after at most one year, if not redeemed.
“They should also provide passengers sufficient flexibility, should allow the passengers to travel on the same route under the same service conditions or the travellers to book a package travel contract with the same type of services or of equivalent quality. They should also be transferable to another traveller,” the guidelines state.
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“European consumers can be reassured. The commission will not downgrade their EU rights for reimbursement for cancelled travel,” said commissioner for justice and consumers, Didier Reynders.
“We recommend, however, making vouchers more attractive for those who chose this option. In the meantime, freedom of movement is the right European citizens cherish most. It is important to restore this right as soon as the circumstances allow it.”
Political reaction
Among those welcoming the news was Green Party MEP Ciarán Cuffe.
The Dublin representative said he was glad that the European Commission “did not yield” to the pressure from airlines.
“This is a difficult time for airlines, but it’s also an extremely difficult time for customers too and it is only fair that Commissioner Vestager has told airlines that they must play by the rules and issue refunds rather than force customers to accept vouchers,” Cuffe said.
He added that it was crucial airlines and travel companies outline how they’ll refund customers in a timely manner.
Fine Gael MEP Mairead McGuinness said the European Commission had introduced a “strong recommendation” for travellers affected by Covid-19 today.
“It aims to make vouchers attractive to passengers or travellers without depriving them of their right to reimbursement in money,” she said.
She said the guidelines provide for the safe and gradual restoration of passenger transport by air, rail, road and waterways, adding: “There are a series of recommendations, such as the need to limit contact between passengers and transport workers, and passengers themselves, reducing, where feasible, the density of passengers.”
Fellow Fine Gael MEP Frances Fitzgerald, however, said that Ryanair CEO Michael O’Leary “clearly has a point” when he argued against State bailouts for airlines.
The airline has already formally appealed decisions from the European Commission for State aid to be provided to Air France and SAS.
“We will appeal any European Commission state aid decisions that discriminate unlawfully between airlines,” said the low-cost airline.
Fitzgerald said: “Clearly he has a point, competition rules and State aid rules are being broken all over the place. And the whole question is, what is allowable at a time of emergency like this? Or really has this got to be called out and for the commission to seriously examine it and make a decision in relation to it?”
With reporting from Sean Murray
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Cash should be refunded within a fair period of time, say 6 – 8 weeks max. Airlines saying they’ll refund after 12 months isn’t fair on people who are suffering loss earnings due to job losses etc.
@Wayne Quinn: true but maybe a bit longer a period as they are dealing with an unprecedented amount of refund requests and less office staff due to social distancing. They should also add 10% value on to voucher offers. People would be more willing then to go for vouchers, especially since flights will likely be a lot more expensive in the futures.
If Ryanair were to offer vouchers plus 20% and rebooking of the same flights at a later date for the same price you would find that a lot more people would take vouchers thus relieving the pressure on Ryanair. At the moment if my flights are cancelled I don’t know if I may have to pay triple the cost next time I book them.
If Ryanair were to offer vouchers plus 20% and rebooking of the same flights at a later date for the same price you would find that a lot more people would take vouchers thus relieving the pressure on Ryanair. At the moment if my flights are cancelled I don’t know if I may have to pay triple the cost next time I book them.
@Wayne Quinn: if you booked on credit card talk to your bank about a charge back. I got my money refunded after Ryanair initially offered me a refund then changed it to a voucher.
@Conor Egan: Conor that’s good advice . I had a booking with online travel agency Opodo and flight was cancelled. They wanted to give me a voucher which I didn’t want. I contacted my card supplier and requested a chargeback. Received my refund into my bank account in two days.
@Conor Egan: yep i did this just last week, was unaware it was possible until recently, so great that you mentioned it so others can also claim this way.
@Wayne Quinn: correct. Plus technically given even average inflation, your money will be worth less when they are looking to refund you!
I tried to meet them halfway in relation to 2 sets of flights they cancelled but they refused to allow me to put both vouchers against just One new booking (which was of course a more expensive flight than the original two) in the Autumn. They will only allow you to use one voucher against one new booking.. So in typical Ryanair fashion, they want it every way
@Dan: the EU are not stopping the government bailouts to Lufthansa and Air France which is against EU rules.
This has been O’Leary’s central point. I believe customers are entitled to their cash back, but only some airlines can afford to do it (despite having good earnings).
@James Smart: How long have you been waiting for your refund James? I have been waiting 3 weeks and no indication how long it is going to take is available.
@James Smart: In fairness to Aer Lingus, I got a voucher yesterday for flights cancelled in April. I think it took four weeks. And, they did add on 10%.
@Mairead Jenkins: I have been waiting for a refund for cancelled LA flight for 6 weeks now. I haven’t even got an email about it, just a case number, called yesterday & was told it would take several months to process.
@James Smart: in fairness, they don’t have the staff capable of processing all these refunds, so it will take time. It’s not just a click of a button to get a refund.
O’Leary said they were processing 10 million refunds per month and they usually do 10,000 and now they have reduced staff because if the virus…so unfortunately you will have to wait for a refund. I’m waiting for 6 refunds from 3 different airlines.
@James Smart: Just a suggestion but if you are waiting what you feel is an unreasonable amount of time, write again to the company and if they don’t refund within two weeks go straight the relevant authority with a complaint. Don’t think they’ll bother otherwise and if it’s the law then it’s the law – you’d expect a refund “within a reasonable amount of time” and 12 months isn’t!…
Shame on our ‘right’ bloody FFG government supporting the airlines on this, especially the cash rich ones. That’ll be my plan once they cancel my booked flights.
Leo should first of all ,be looking after the citizens of Ireland .not looking for the law to be changed to suit airline’s. The refunds we want will be most likely spent in the irish economy.
@Rúraíocht: a Ryanair have a 4 billion cash pile so you can jog on….my refund is not going into the pocket of Mike to add more to the billion he us worth already they treat their staff like dirt
@Rúraíocht: are you waiting on €1300 refund ?? nothing to do with what your saying .they closed seen Quinn insurance because he didnt have enough money to meet claims if everyone insured with him had a claim against them cope yourself self on. Leo trying to change the European commission law end of story!!!
If my €120 keeps Ryanair in business, I’m happy enough if I never see it again. It’s a mere fraction of all I’ve saved over the years. I’ve had Knock – Luton flights for less than €50 on numerous occasions.
I’m speaking for myself here. I realise that many people have a lot more at stake than I have. And I’ve still got that voucher should I choose to use it!
@Spartacus Ireland: would u really trust an airline like Ryanair say to pass your refund money on to a charity? I wouldn’t trust any of them to do it, they exist to make money
@Róisín Ni Loirgneáin: this is the most sensible reply I have seen! I totally agree. We get flights for so cheap & it’s because of Ryanair. Wait until airlines fold & see what all the whingers are saying here
@Thomas Claffey: Also raised a case with flightrights.ie, who are taking on the case to their credit. Not holding out much hope of any real outcome here though.
@Thomas Claffey: EU-261. Acknowledged as a breach by the regulator and taken on as a case. Would be amazed if anything came of it as they are being undermined by the Government now on this starting with Shane Ross mouthing off from the start. No valid reason from small claims court as to why the case does not qualify. Probably unable to handle the volume and scared to entertain. Useless.
@Thomas Claffey: Not if they don’t have the money. Aer Lingus’s IAS which also owns American Airlines, British Airways & others is said to be in trouble.
When governments start to reboot economies later in the year airlines should be near the top of the list especially in the EU as the overall economy (EU) relies heavily on tourism
FG wanted them to hold the cash and offer just vouchers,it took the EU to tell them to cop on, if ever there was more proof needed FG are a disaster for working people..
I had several flights cancelled due to this. And I would’ve accepted a voucher, under terms like Aer Lingus: a bonus 10% and a LONG validity of 5 years, even if the flight was still running and you just didn’t want to travel.
Instead, BA’s offer is 1 year validity of face value, even if the cancellation was involuntary (cause the flight didn’t run). Who in their right mind accepts this? A refund for a booking could be several hundred, or more. It’s not a supermarket voucher — there’s a good chance you won’t have a use for it for some time.
I understand lots of airlines have cashflow problems at the moment. And since my job isn’t severely affected by the lockdowns, I’m sympathetic — I don’t need the cash immediately. But asking you to help them out by taking a voucher when you’re entitled to cash, but then offering such miserly terms is a joke.
@Joe Toner: In fairness Ryanair have issued vouchers very quickly. A voucher is better than nothing. Aerlingus on the other hand have issued absolutely nothing.
Has anyone actually received one of these magical vouchers from Aer Lingus? I cancelled a flight with them due to the current restrictions, I followed their procedure, I (imo) kindly said I’ll take a voucher not a refund and then radio silence!? I understand that they’re under pressure and I appreciate that these are unprecedented times, however 7 weeks later and I’ve still heard nothing feels a little bit like a p*ss take now. I’ve been obliging and understanding of their situation but at the end of the day I am still the customer and they need to maybe now show me a gesture of good faith – or maybe I’m wrong!?
@Maureen Laraway: Ah! Thank you for that! My flight was due on the 18th of May. That’s excellent news to hear that someone has actually received their voucher.
Ryanair said around 25 million bookings cancelled so at even €50 each that’s over €1billion to refund. This and the fact they have hedged fuel at much higher prices(along with other airlines) is surely not a great start for the new CEO Eddie Wilson. They should really be cancelling 737 max orders like many others are doing and replace them with knock down prices on 737 800 planes they already fly.
@Peter O Donnell: Finally good news for ordinary people and large companies didn’t bully boy their way to changing the rules. Ryanair should return peoples money 7 days after cancelling flights!
All well and good until they go bust due to cash flow issues, then no one get their money back. At least with vouchers we get something. I am awaiting vouchers currently. I’m now concerned that I will never get them.
@Mairead Jenkins: How long do you think those Billions will last when nobody is booking flights for at least a year? Simon Harris came out a few weeks back and said he can’t see people flying anywhere again this year. Airlines make no money in the winter so you’re talking summer 2021 before people start flying again. Those bookings won’t happen until at least next February or March. Not even IAG can sustain that.
I asked for a cash refund on my cancelled Ryanair flights.
4 weeks later I received a 1 year valid voucher for my cancelled flight…Not happy.
Did the government not say vouchers should be valid for 5 years ?
If Ryanair made the voucher valid for up to 5 years I’d happily keep it.
But 1 year, No I’ll take my cash refund thank you.
If the ticket is booked with your credit card, dispute the charge,YOU PAID FOR SOMETHING THAT WAS NOT DELIVERED. I was offered a coupon from boac ,that I had to use by Aug 31. 2020 And fly by April 30, I disputed the charge because it was useless to me.its in the process right now.i will get a full refund..now Ryanair mabybe another issue, I’m supposed to fly with them 1 july.we will see.
Ryan Air spokesman was spouting nonsense earlier this week about administrative challenges in paying. Bet they implement bots to reduce cost but not refunds.
That’s a good result.
If airlines want to offer vouchers, they should add 20% to the value of the cash owed. Since many of the vouchers will never be cashed anyway, they won’t lose much.
@Wayne Quinn: well it seems that the law still upholds, so under that law, refunds must be issued within 7 days. Shame on the Irish government to try and bend the law when it suits them. Airlines who apply for a bailout, and retain the cost of the flights, as well as the likely price hike for flights in the future are laughing all the way.
I am waiting for refund for cancelled flights since March. Ryanair said they’re refunding according to date so I should have received my money by now as they only stopped flying Mid March. They are now advertising flights from July onwards, well capable of taking people’s bookings and cash but when it comes to refunds… It’s mostly cabin crew laid off, not admin staff and why wouldn’t their admin be able to work from home like many I know working for financial institutions whom are doing just that? Greedy Ryanair. Will never use them again.
Conor Your statement “ If the flight goes ahead you’re not entitled to anything. If it’s cancelled you’re entitled to voucher or refund.”
I’m not sure if your correct? The DFA ( Department of Foreign Affairs ) issued at directive only to travel if it’s essential. So if the flight goes ahead your not allowed to take it. They also restricted the distance by the 2km radius now 5km. So I think one would be entitled to a full refund? Would you agree?
@John Connell: while I’d like to agree, you bought the flight with the presumption that you would fly, I can’t imagine you would be entitled to a refund if the airline doesn’t cancel the flight, they are still keeping to their side of the bargain. In saying that, I cant understand why there are any passenger flights allowed to go ahead. Why are they allowing potential carriers of the virus circulate, but asking the rest of us to stay at home, I find it very frustrating, we will never eliminate the virus, if there are no restrictions at our borders.
Let’s look at this in a more holistic way. EU countries are bailing out their own national airlines which in effect is the same as providing them with a massive taxpayers ‘voucher’ . Micheal o Leary has a point in that the old legacy airlines are been bailed out whereas Ryanair gets nothing. So I would have to say the EU is being hypocritical in their approach and unfairly treating some airlines over others which is anticompetitive.
Not a spokesman for Ryanair as I have my own voucher with them for a cancelled flight!
@Paul Ryan: Those governments are paid back in cash and sometimes equity also. Those bailouts are largely loans.
But for my €500 cash loan, I’m not given cash as repayment but instead given a voucher. No interest and no equity. And likely the new dates will be more expensive.
If they want cash they should sell equity in their business and take private loans.
This is worse than a bailout. Bailouts get refunded in cash
@Paul Ryan: and the vouchers are not even valid for 5 years. Because these wasters don’t want them on their balance sheet when times get better. The greed perpetuates
Nearly two months waiting on Aer Lingus to issue my voucher. Called twice only to be cut off saying they can’t help process it any faster and just ignored on Facebook Messenger. The whole process from booking to accepting voucher online, I don’t understand how it can take so long.
Other government’s have bailed out airlines and now these same governments are trying to put the rest out of business to maximise on there investment, its a truly shocking way to behave at a time like this
If the airlines had to pay out a refund with 6-8 weeks for every cancelled flight due Covid -19 they many would simply fold and a huge chunk of customers won’t get their money anyway.
Under normal circumstances it’s a perfectly fair rule but under these circumstances it’s completely ridiculous and unrealistic. Hundreds of thousands of jobs would be lost if this was enforced on the airline industry.
@Conor Egan: not quite true (though may as well be).
You’re always entitled to a refund of taxes and airport charges, since the airline doesn’t pay them otherwise. But their refund admin charge often reduces this to near zero. On a €100 I got back €30 from these.
My flights were cancelled by Ryanair on the 20 March. Had insurance paid on all three flights.. Went online to recover my money, advised to make the claim with Euro assist.. They declined the claim, directing me back to Ryanair. Went on line again, but it advises you that this matter is pending.. Since I made the application for a refund on the 15 March.. I heard M. O’leary on BBC breakfast time, saying all March cancelled flight booking have received reinburstment or giving vouchers.. I’ve received nothing.. Nada.. And he was asking for people to book in July.. Ah come on micky O’leary.. Do you take us as fools..? Settle up what you owe to people before fleecing them again..
Conor Your statement “ If the flight goes ahead you’re not entitled to anything. If it’s cancelled you’re entitled to voucher or refund.”
I’m not sure if your correct? The DFA ( Department of Foreign Affairs ) issued at directive only to travel if it’s essential. So if the flight goes ahead your not allowed to take it. They also restricted the distance by the 2km radius now 5km. So I think one would be entitled to a full refund? Would you agree?
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