Of the complaints, refund-related issues comprised 54% of the total. The Department considers a practice to be unfair to consumers if it (1) causes or is likely to cause substantial injury to consumers, (2) cannot be reasonably avoided by consumers, and (3) is not outweighed by countervailing benefits to consumers or to the competition. governments to suspend refund requirements. their own need to preserve cash,” he wrote. said that the best solution right now for airlines and agents alike is for DOT told airlines that any flight canceled by the airlines must be refunded in cash.

But some airlines aren't playing nice when they cancel flights themselves, and the DOT is planning to enforce the existing refund law aggressively. What rights do passengers have if they purchased their airline ticket from an online travel agency?

Copyright 2000 - 2020 Travelers United | All Rights Reserved, US cities with easy downtown-to-airport transit connections, TV & Radio Appearances, Releases and Infographics, Cash is king for COVID-19 airfare cancellation refunds, I need more than a mask to save me from COVID-19 on planes, Why daily local newspapers provide useful benefits for travelers, Why DOT’s consumer protection needs a reset. passengers who have been denied refunds, the DOT said. Travel agents are required to make “proper” refunds when service cannot be performed as contracted. often giving travel vouchers.

Because COVID-19 is having an "unprecedented impact on air travel," as stated in the enforcement notice, the DOT is giving airlines "an opportunity to become compliant before taking further action." response to the Covid-19 crisis has left the airline industry with a $35

With airlines already struggling due to enormous losses in revenue, IATA First, see if the airline cancels or changes your flights significantly, and then you will be in a position to demand a refund. personnel on the circumstances in which refunds should be made. Meanwhile, the sheer volume of refund transactions facing
ARC will now turn over refunds to agencies 10

The department wants to make sure you know that -- by law -- airlines need to give you your money back when they cancel your flights (if you don't want flight credit, of course). That From a similar period last year to March and April of 2020, air travel service complaints grew from 1,500 to more than 25,000.

Souvenirs can bring my trips back to life, Why DOT's consumer protection needs a reset, Why airline consumers have the rights of Medieval serfs. decision, said ARC’s vice president of airline retailing and settlement Chuck Fischer, was

Anything less is considered unfair and deceptive practices. Before diving into each airline’s performance, it shouldn’t come as a surprise that most of the complaints that the DOT received in March were about refunds.

“The longstanding obligation of carriers to provide refunds In addition, 33 airlines (as of April 3) have unilaterally

So daddy DOT has just stepped in to set the record straight. They present the DOT’s intent. Questions regarding this notice may be sent by email to. Charlie Leocha is the President of Travelers United. outside the carrier’s control, but rather on the fact that the cancellation is

Many airlines are providing travel credits or vouchers that can be used for future travel for those passengers electing to cancel their travel due to health or safety concerns related to COVID-19.

DOT’s enforcement division immediately answered several consumer group questions.

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for refunds. Complaints filed by consumers grew by almost 1,700 percent. • They must update contacts of This is true even if the change or cancellation is due to concerns related to the COVID-19 public health emergency. DOT recognizes that during the COVID-19 public health emergency refunds may take longer to process. In other words, to quote Twin Peaks, airlines need to fix their hearts or die.

suspended refunds through the GDSs or ARC’s Interactive Agent Reporting system, There is no definition for travel agents. has been lobbying governments to suspend refund requirements. passenger funds are held by a ticket agent. IATA, which oversees agent channel billing and settlement Note: Consumers should ALWAYS send complaints to DOT whenever sending complaints to airlines. Airlines must tell passengers that they are entitled to a full cash refund for airfare and any ancillary fees paid.

The Department of Transportation (DOT) released its enforcement notice about airline refund rules on April 3, about a month and a half ago. However, airlines may give passengers a choice of whether they would like cash or credit for a future flight.

significant schedule changes to be a regulatory violation. If an airline, by representation or omission, misleads consumers about their right to a refund, or the value of a voucher or credit that is offered, DOT would deem such conduct to be a deceptive practice. You're still due a refund, DOT says. The DOT's enforcement notice stated that "foreign airlines remain obligated to provide a prompt refund to passengers for flights to, within, or from … These answers are a blend of DOT wording and clarifications from Travelers United.

Don't voluntarily cancel the flight on your own. Discover some of the wellness travel industry’s best options for nourishing your clients’ minds, bodies and spirits on their... Unforgettable, Affordable Private Travel with the Xanterra Travel Collection. DOT will take enforcement action as necessary and appropriate. Airlines and ticket agents may not apply changes to their contracts of carriage retroactively that affect consumer refunds negatively. The refund policy in place at the time the passenger purchased the ticket is the policy that is applicable to that ticket. How did they propose to handle travel agencies that balked at providing refunds? The notice applies to both U.S. and forcing travel advisors to deal directly with the carrier.

international ticket holders will have to wait a year to get repaid for a for flights that they have canceled. According to airline contracts of carriage, passengers may change or cancel their reservations.

Travelers United is a nonprofit tax-exempt 501(c)(3) organization.

These accomplishments have been achieved by working closely with our members, national media, the travel industry, the Department of Transportation (DOT), Congress and many other agencies. Bi-partisan bill to eliminate hotel resort fees introduced into House of Representatives, Creation of the DOT Consumer Advocate to focus on aviation consumer protections, Full Fare Act — Advertised airfares now include all mandatory taxes and fees, Lost/damaged/delayed luggage compensation limit increased to $3,500, Passengers have 24 hours to change or cancel their nonrefundable tickets without penalty, Once airfare is purchased, that airfare and ancillary fees cannot be increased.

carriage to make refund rights clear.

can’t go through their procedures fast enough to meet the five-day schedule. its weekly remittance schedule. prompted by the fact that with current refund volumes, many airlines simply for most of the world other than the U.S., has no such reluctance. of refunds to travelers with cancelled flights, but only if they meet three flight disruptions are outside of the carrier’s control,” the DOT said in the off GDS refund processing, “but we can’t stop them from doing that.”. to issue cash refunds at a time when airlines are making decisions based on Airlines have 20 business days for airfares paid with a check or cash.

Germany, the Netherlands and Colombia have issued favorable rulings for airlines. You can file airline-related complaints on DOT… If a passenger decides that they would like to take a credit voucher, airlines must fully disclose the conditions of use of that voucher. In an open through no fault of the passenger.”. If you look at complaints strictly related to U.S. airlines, that proportion jumps to 64%.

NOTE: This is a reprise of an article published about a month ago. flight canceled by the airline. ___. Airline cancel your flight due to coronavirus crisis? The Western States Virtual Expo will connect travel advisors with partners representing the best of the west. He has been working in Washington, DC, for the past 11 years with Congress, the Department of Transportation and industry stakeholders on travel issues. Here are DOT’s answers. specifically define “significant schedule change.” A DOT spokesperson said it However, neither the term “significant change” nor “cancellation” is defined in regulation or statute. billion refund liability worldwide, according to a recent IATA estimate. If your clients are yearning for... https://www.travelweekly.com/Travel-News/Airline-News/DOT-orders-airlines-to-pay-out-refunds. Refusal to refund airfares where the service is not provided constitutes unfair and deceptive practices. Airlines have also acted individually to make refunds more

Airlines instead are However, it must be reasonable and it must be in cash unless agreed to otherwise by the passenger.

Some have stopped processing them entirely while many 100 Lighting Way Secaucus, NJ 07094-3626 USA Telephone: (201) 902-2000, Photo Credit: Oliver Le Moal/Shutterstock. This list of frequently asked questions (FAQs) should help consumers understand their rights and to ensure airlines and ticket agents are complying with aviation consumer protection requirements.
It's one thing if you cancel your own flight during the pandemic and want to take advantage of the waived cancelation fees; In that case, an airline is allowed to offer only credits or vouchers. I am republishing this post so that those who do not know the rules will be reminded.

1. Redefining retroactively any past definitions of cancellation or significant change is unfair and deceptive.

The Department of Transportation (DOT0 issued an enforcement notice on Friday stating that any airline that refuses to refund your ticket after your flight is canceled is breaking the rules and it must change its business practices ASAP... or else.

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