The reimbursement of cancelled flights due
to the coronavirus has been a hot topic in recent weeks. Several airlines have
been obscure regarding their refund policies, not providing the relevant consumer
information on their websites, providing conflicting information or even
refusing to provide any refunds. For example, in the case of Ryanair, there
have already been at least 3 different approaches to this issue between the 25th
of March and today. Ryanair initially allowed for a choice between a refund
and the re-booking of the ticket. Then, Ryanair emailed all passengers asking
whether the passengers would accept a voucher instead of a refund and that, in
any case, the refund would only be paid after ‘the COVID-19 emergency has passed’.
Finally, Ryanair emailed all passengers again informing them that a voucher had
been issued (without the passenger’s active choice in that sense, and after the
passenger had explicitly asked for a refund). While this email mentioned the
apparent option for the consumer to re-submit her refund request, Ryanair re-directed the consumer to their FAQ on how to use
the voucher, without any actual means of contact or any form to re-submit the
consumer’s claim (this account is based on personal experience and on reports by
the media, e.g. https://www.bbc.com/news/business-52370158).
According to the very clear Article 8 of Regulation 261/2004, in case of a flight cancellation all passengers are entitled to a choice between a
refund or rebooking of their ticket (reimbursement or re-routing). It therefore appears that a mandatory voucher goes against
the rights of the passengers. The airlines can, however, offer a voucher to the
passengers as long as this remains voluntary, that is, as long as
passengers can alternatively opt for (and receive) a refund. This is also the official
position of the European Commission, who has announced earlier today that it
has adopted a recommendation on vouchers for cancelled flights, based on the EU’s
plan on ‘Tourism and transport in 2020 and beyond’ (here).
These guidelines and recommendations follow the interpretative guidelines on EU
Passenger Rights Regulations from the 18th of March (here).
The Commission wants voluntary vouchers to be a ‘viable and attractive
alternative to reimbursement for cancelled trips’ and therefore wishes to
provide incentives for passengers to accept vouches instead of a refund. The
Commission’s goal is to encourage consumers to accept voluntary vouchers in
order to prevent the insolvency of several airlines heavily operating in Europe.
The Commission highlights, however, that consumers retain their right to be given the possibility to receive a cash refund. Furthermore, the Commission states
that the vouchers should be protected against insolvency, should be reimbursable
after one year, and should provide adequate flexibility for consumers who wish
to use them (e.g. regarding their transferability). It is important to
highlight that this applies only when the airline cancels the flight – situations
where passengers cannot travel or want to cancel a flight on their own
initiative do not fall under EU’s passenger rights regulations. It is now up to the Member States to adjust their laws accordingly.
