We’re not going on a summer holiday.
On 17 March the Foreign Office advised against non-essential foreign travel for a period of 30 days which has been subsequently extended indefinitely, plunging the travel industry, like many others, into uncertainty.
With flights cancelled, planes grounded and Necker Island as a bargaining chip (if only we could get there) the airline industry’s short-term future is balanced precariously.
Prepare yourself for boarding
As the online refund requests are submitted and call centres up and down the country continue to field cancellation and compensation enquiries, it is important that both individuals and airlines know their rights.
Although each case should be assessed on an individual basis, under EC Regulation 261/2004 (the ‘Regulation’) if your flight is cancelled you are entitled to reimbursement in cash of the price of the ticket or an alternative flight to your destination.
Under these extraordinary circumstances however, passengers are not entitled to compensation under the Regulation.
If your flight is yet to be cancelled, you can either:
- wait for the airline to cancel the flight and contact you; or
- try to reschedule the flight with the same airline for the future.
Delays expected
Due to the severe volume of requests and the lack of incoming revenue, airlines are struggling to process and pay their passengers the refunds they are entitled to.
The refund should be paid within 7 days, but current waiting times are significantly longer. Such delays do not alter the individual’s right to a refund and are likely to result in an increasing amount of court proceedings brought against airlines under the Regulation.
Blue-sky thinking
Airlines are offering different solutions to avoid refunds.
In a hope to get their planes off the ground quicker than their competitors, and prevent ‘cabin fever contraction’ whilst doing so, Easyjet announced plans to social distance onboard by leaving middle seats unoccupied during flights (although, Ryanair’s CEO made it clear it would not be taking the same approach, describing such a solution as ‘Idiotic’).
Some airlines are reported to offer alternatives to cash refunds such as vouchers and credit notes. Individuals are not required to accept these offers but should be aware that without guarantee or a redeemable option, such alternatives will be worthless should that airline collapse.
Others airlines are offering a deferred refund, which seems a sensible compromise between the protection of their passenger’s rights under the Regulation and the operational and cash flow demands of processing the refunds. However, similar to the above, should an airline subsequently collapse, passenger’s refunds will not obtain any preferential treatment ahead of other creditors.
Turbulence ahead
The next few weeks will be interesting as lockdown continues and more flights are cancelled. With the UK Government showing no indication of changing its current travel advice, or a willingness to bail the airlines out, the industry’s foreseeable future seems to be as unpredictable as a budget airline’s arrival time.
If you would like to speak to one of our lawyers regarding your rights contact us on 0207 421 9421, email Henry Wright on henry@gordonsols.co.uk or make an online enquiry and we will call you back.