British Airways, along with Ryan Air, are under investigation for allegedly breaking consumer law by refusing refunds. Those amongst those refused are people unable to legally take the flights due to Covid 19.
The airlines did offer alternative options, but fail to fully refund the cost of the ticket. The Competition and Markets Authority (CMA) says this has left thousands of customers out of pocket.
British Airways say they have acted lawfully throughout, whilst Ryan Air says they offer refunds in justified situations. The CMA counter this statement saying, whilst they offered vouchers and the rebooking of flights, they fall short of actually offering refunds.
The CMA began investigations in July last year after receiving over 148,000 complaints about refunds, cancellations and price rises. The organisation issues warning to different airlines for issuing vouchers instead of refunds.
British Airways and Ryan Air punishing customers for following the law
In accordance to the current Covid guidelines, people are not allowed to travel unless essential. Chief Executive of the CMA, Andrea Coscelli, says he understands airlines have had in tough in the pandemic. However, leaving people “unfairly out of pocket” due to following the law is unfair.
The investigating Watchdog has concerns regarding the conduct of the airways throughout the pandemic. It is looking to resolve concerns raised, potentially asking the airlines to offer refunds “or other redress” to those affected.
The CMA has listed its concerns in a letter, outlining its concerns. Typically the organisation will work in conjunction with the airlines. However, if British Airways or Ryan Air resist the suggestions, the CMA can seek a court order compelling them to issue refunds and make changes to their terms and conditions.
British Airways denies acting unfairly, saying they issued over “three million refunds” as well as helping travellers change travel dates or destinations. They criticise the ongoing investigation as “any action taken will only serve to destabilise the industry”. It will affect jobs, business, connectivity and the economy with it.
Ryan Air also believes it is acting responsibly. Since June 2020, they have given customers the option to rebook without paying additional fees. The company says millions of customers have availed with this option.
Other huge airway lines; such as Tui, Lastminute.com and Virgin Holidays, have issued refunds at the total of approximately £200 million.
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