Many airline carriers, including easyJet, have limited refund-processing capacity for customers whose flights have been canceled | Sean Gallup/Getty Images
Mass coronavirus cancellations squeeze air and rail refund rights
Airlines are offering vouchers instead of refunds as they struggle to stay afloat.
Trying to get reimbursed for a trip canceled because of coronavirus? Good luck with that.
As regular travel grinds to a halt, millions of passengers are trying to get their money back for canceled airfares and train trips with Eurostar — many unsuccessfully.
Brussels Airlines canceled all its flights between March 21 and April 19 and soon after, it told passengers it was “currently unable” to process refunds. Now it says processing refunds will take a lot longer than usual. Instead, the Lufthansa subsidiary is offering to rebook flights, but with countries under lockdown of an unknown length it’s almost impossible for people to plan future trips.
EU air passenger rights legislation stipulates that in the event of a cancellation, passengers are entitled to rebook the next available flight or at another time of their choosing — and if they do not want an alternative, they can choose a refund.
But those rules are coming under severe pressure because of the virus-induced crisis, with regulators trying to balance the rights of passengers eager to recover whatever costs they incurred with transport companies trying desperately to stay afloat.
Airlines have been lobbying for years to water down the EU legislation — which they think is exceptionally costly. Those efforts have ramped up during the crisis: Airline lobbies A4E and ERA wrote a joint letter to the Commission earlier this month saying the right to a refund “could have serious financial implications for airlines in the short term.” They want national authorities to allow companies to offer travel vouchers as an alternative.
Passengers have complained that Aer Lingus and British Airways (both owned by International Airlines Group) are among those that do not display a refund option.
EasyJet says passengers are entitled to a refund if it cancels flights, but under the “Manage Bookings” section of its website there is no option for a refund, only to rebook. Its cancellation page wasn’t working when POLITICO tried to access it. The carrier said on Monday that it is grounding its fleet of more than 300 aircraft due to the coronavirus.
EasyJet, British Airways and Aer Lingus all say they are happy to process refunds for canceled flights. Passengers told POLITICO that Ryanair has a relatively easy process to apply for a refund.
It’s not just individual travelers complaining. Business travel agencies are also finding it difficult to get their money back. The British Business Travel Association wrote to airlines calling on them to stick to the rules on providing refunds.
“The current EU regulation on air passenger rights only provides harmonized rules in case of cancellation by airlines themselves,” said Ursula Pachl, the deputy director general of consumer rights group BEUC. If passengers themselves opt not to fly, then refunds depend on airline small print and national rules. “Consumers should be free to cancel travel booked in the near future without cost.”
Asked about its refund policy, a spokesperson for Brussels Airlines said it is still in place. “If the passenger does not wish to make use of this ticket value and prefers a refund of his ticket, he/she is of course free to request one,” the spokesperson said, adding that the high number of claims means the carrier will take longer to handle them.
The Commission said in official guidance last week that airlines are still obliged to offer refunds to passengers despite the coronavirus crisis.
However, a letter from Transport Commissioner Adina Vălean to EU transport ministers and seen by POLITICO said the Commission is working on “further clarifications” on its legislation given the circumstances. Asked about airlines’ failure to provide refunds, a Commission spokesperson said it’s the responsibility of national authorities to enforce the rules.
Please come again
Eurostar, which holds a monopoly on rail services between London and Brussels and Paris, is only offering travelers e-vouchers rather than cash refunds for tickets. They can be used for travel anytime up to the end of March 2021, but any price increase for the new ticket needs to be covered by the passenger.
“I actually travel weekly … so vouchers work just fine for me,” said Sabina Ciofu, who runs EU and trade policy at lobby group TechUK. “I can see how people who travel less frequently may just want their money back though.”
According to BEUC’s Pachl, the policy is far from ideal for consumers. “Passengers should have the choice: vouchers are not mandatory,” she said. EU rail passenger rights rules, currently being reformed, say operators should offer passengers a cash refund if that’s what they want.
“Clearly this is an evolving situation so we continue to review as it progresses,” said Rob Haycocks, a spokesman for Eurostar.
Other railway operators appear to be adhering to EU rules, with Germany’s Deutsche Bahn giving refunds to passengers who no longer wish to travel. Thalys, which has similar shareholders to Eurostar, is also happy to offer refunds.
Airlines say the scale of the crisis has made it harder for them to contact passengers. Many carriers temporarily cut 90 percent of their workforce just as millions of passengers are calling them for assistance, meaning some passengers report waiting hours to get through to a customer service official — if they reach anyone.
“This is the deepest crisis we have ever had in our industry,” Alexandre de Juniac, the managing director of the airline lobby group IATA, said on a Tuesday call with reporters. The group estimates airlines are on course to lose $252 billion in revenue this year.
Lufthansa and easyJet are among many airlines frantically negotiating aid packages from governments to help them survive the downturn in air travel.
Not all experiences have been bad. Zain Yaqoob, 29, a German national, had a return flight booked from Munich to Montreal with Lufthansa this month, which got canceled. He called the carrier’s customer service portal and said he received a refund within a week.
“No arguments or excuses while speaking to the agent,” Yaqoob said.
This article has been updated with easyJet grounding its fleet.
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