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The UK competition regulator has launched an investigation into the inability of airlines to offer cash refunds to travelers who have been unable to catch their flights due to the coronavirus pandemic.
The Competition and Markets Authority (CMA) said its move followed reports that airlines may have violated consumer rights by failing to offer cash refunds in cases where travel restrictions meant people couldn’t take the flight legally.
The CMA cited the example of consumers unable to travel for non-essential purposes in the UK or abroad during the second blockade in England in November. The regulator said it was aware of cases where flights were not canceled and refunds were not offered to customers even though they could not legally travel. Instead, many were offered the option to rebook or receive a coupon.
The CMA said airlines may be under heavy financial pressure, but that doesn’t mean that consumers should be “unfairly left out of pocket.”
Andrea Coscelli, executive director of the CMA, said: “We will carefully analyze all the evidence to see if any airlines violated the legal rights of consumers by rejecting cash refunds for flights that they could not legally take. We recognize the ongoing pressure businesses face today, but they have a responsibility to treat consumers fairly and comply with their legal obligations. “
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The CMA intends to write to several airlines to “understand more about their reimbursement approaches for consumers unable to fly due to blockage.” The regulator, which did not indicate which airlines it will contact, said that after a “careful analysis of this evidence”, it would decide whether to take enforcement actions against individual airlines.
The CMA will work with the UK Civil Aviation Authority on the investigation.
