Airlines are again pleading for government assistance, only this time, they want a break from some federal regulations instead of financial aid.
A global industry group has warned that many of the world’s airlines are running out of money and on the brink of financial collapse and therefore they cannot afford to give customers refunds for cancelled flights.
Regulations in the U.S., Europe and elsewhere require airlines to fully refund fares paid by customers when the airline cancels their flight.
And since the coronovirus outbreak, airlines have been cancelling thousands of flights a day as demand for air travel plummets.
But instead of honouring their obligation to give refunds, many airlines have only been offering vouchers and credits for future travel, which customers often must use before the end of the year.
Many airline passengers and consumer advocacy groups have filed complaints and lawsuits against the airlines for failing to follow the refund rules.
The head of the International Air Transport Association (IATA), the group representing air carriers around the world, said airlines are losing billions and burning through their cash reserves.
“The key element for us is to avoid running out of cash so refunding the cancelled ticket for us is almost unbearable financially speaking,” IATA director general Alexandre De Juniac said in an online news conference.
The industry lobbying group is asking governments to relax their refund policies and allow airlines to offer travel credits and vouchers instead. But amid a rising number of consumer complaints, the U.S. Department of Transportation last week warned airlines they must provide refunds when they cancel flights.
“The obligation of airlines to provide refunds, including the ticket price and any optional fee charged for services a passenger is unable to use, does not cease when the flight disruptions are outside of the carrier’s control,” the department said in a statement.
In Africa most airlines have grounded their passenger and cargo fleets due to the coronavirus outbreak.
Airlines are again pleading for government assistance, only this time, they want a break from some federal regulations instead of financial aid.
A global industry group has warned that many of the world’s airlines are running out of money and on the brink of financial collapse and therefore they cannot afford to give customers refunds for cancelled flights.
Regulations in the U.S., Europe and elsewhere require airlines to fully refund fares paid by customers when the airline cancels their flight.
And since the coronovirus outbreak, airlines have been cancelling thousands of flights a day as demand for air travel plummets.
But instead of honouring their obligation to give refunds, many airlines have only been offering vouchers and credits for future travel, which customers often must use before the end of the year.
Many airline passengers and consumer advocacy groups have filed complaints and lawsuits against the airlines for failing to follow the refund rules.
The head of the International Air Transport Association (IATA), the group representing air carriers around the world, said airlines are losing billions and burning through their cash reserves.
“The key element for us is to avoid running out of cash so refunding the cancelled ticket for us is almost unbearable financially speaking,” IATA director general Alexandre De Juniac said in an online news conference.
The industry lobbying group is asking governments to relax their refund policies and allow airlines to offer travel credits and vouchers instead. But amid a rising number of consumer complaints, the U.S. Department of Transportation last week warned airlines they must provide refunds when they cancel flights.
“The obligation of airlines to provide refunds, including the ticket price and any optional fee charged for services a passenger is unable to use, does not cease when the flight disruptions are outside of the carrier’s control,” the department said in a statement.
In Africa most airlines have grounded their passenger and cargo fleets due to the coronavirus outbreak.
Ethiopian Airlines, Africa’s biggest airline, has started to lay off workers, including crew members in response to the devastating impact of the coronavirus crisis on the global travel industry.
Africa’s biggest airline, has started to lay off workers, including crew members in response to the devastating impact of the coronavirus crisis on the global travel industry.
