Skift Take
It’s still brand-new area, handling the monetary fallout of mass government-imposed travel constraints, and airline bankruptcies thrown into the mix. This will take years.
Matthew Parsons
The U.S. Transportation Department stated on Thursday it has 18 pending investigations versus airlines over problems that they failed to offer prompt refunds during the Covid-19 pandemic.
The department said in a report to the White House it was still examining 30,100 problems involving 18 airlines out of 20 investigations it had actually at first opened. It did not call the airline companies.
“The department has actually dedicated considerable time, energy, and effort to protecting relief for consumers and holding airline companies accountable,” it said in the report.
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The department noted it had concluded investigations into complaints including Air Canada and United Airlines.
In June, the department stated it was looking for a $25.5 million fine from Air Canada over the provider’s failure to supply prompt refunds to thousands of customers who requested them for flights to or from the U.S.
Air Canada has advised the department to dismiss the complaint stating the department’s “arbitrary conduct flatly contradicts years of well-established law.”
The department said on Thursday that settlement negotiations with Air Canada “are continuing.” Air Canada did not immediately comment.
In June, the Transport Department stated it was examining the refund practices of a concealed number of U.S. and foreign carriers flying to and from the U.S. and would take “enforcement action” as suitable.
The department stated Thursday it is independently analyzing 4 foreign carriers that declared bankruptcy security and “exploring alternatives on how guests who did not get refunds when the carriers canceled their flights might be compensated.”
In January, the department ended its probe into United after the carrier “took timely corrective actions, leading to countless passengers who had actually at first been denied refunds receiving the required refunds in or around June 2020.”
The Transport Department is working to increase the variety of staff handling customer grievances by 38 percent.
The department said it prepares to provide rules on refunds for consumers who are unable to take a trip due to government constraints. Existing guidelines do not attend to refund eligibility under special scenarios, such as government-imposed travel limitations.
It likewise said a minimum of 9 airline companies that at first provided vouchers or credits rather of refunds for non-refundable tickets altered policies to explain guests are entitled to refunds under such situations and supplied refunds as required.
(Reporting by David Shepardson; editing by Richard Pullin)
This article was composed by David Shepardson from Reuters and was lawfully certified through the Market Dive publisher network. Please direct all licensing questions to legal@industrydive.com.
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