Airlines to cough up millions in refunds and fines over delays and cancellations
Frustrated travellers subject to major delays or cancellations to their US flights could be entitled to a portion of $US 600 million ($NZ 978 million) in refunds from six airlines forced to refund their customers.
The airlines have been ordered to pay back customers by the US Department of Transport as part of “historic enforcement actions”.
Under US law, customers must be refunded by airlines or ticket agents if the airline cancels or significantly changes a flight to, from or within the US and they don’t want to accept the alternate offer.
The department also ordered the airlines to pay a total of $US 7.25 million ($NZ 11.83 millIon) in fines for “extreme delays in providing refunds”.
“When a flight gets cancelled, passengers seeking refunds should be paid back promptly. Whenever that doesn’t happen, we will act to hold airlines accountable on behalf of American travellers and get passengers their money back.” said U.S. Transportation Secretary Pete Buttigieg in a press release shared on Monday.
“A flight cancellation is frustrating enough, and you shouldn’t also have to haggle or wait months to get your refund.”
According to 7News.com.au, the refunds apply to both US and international travellers.
The fines and refunds vary from airline to airline, with the affected airlines including:
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Frontier Airlines - ordered to refund $US 222 million ($NZ 362.2 million) and pay $US 2.2 million ($NZ 3.6 million) in fines
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Air India - to pay back $US 121.5 million ($NZ million) and fined $US 1.4 ($NZ 2.3 million)
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TAP Portugal - with refunds totalling $US 126.5 million ($NZ 206.3 million) and fines of $US 1.1 million ($NZ 1.8 million)
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Aeromexico - to refund $US 13.6 million ($NZ 22.1 million) and pay $900,000 ($NZ 1.4 million) in fines
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El Al - due to pay $US 61.9 million ($NZ 100 million) in refunds and $900,000 ($$NZ 1.4 million) in fines
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Avianca - with total refunds of $US 76.8 million ($NZ 125.2 million) and a fine of $US 750,000 ($NZ 1.2 million)
Most of the fines will be paid to the Treasury Department, with the remainder to be credited based on airlines paying customers beyond the legal requirement.
According to Blane Workie, the assistant general counsel for the Office of Aviation Consumer Protection DOT, the refunds have either already been made or customers should have been informed of them.
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