U.S. completes 10 airline refund probes, plans enforcement actions

WASHINGTON, July 10 (Reuters) – The U.S. authorities has accomplished 10 airline investigations into delayed or withheld passenger refunds throughout the COVID-19 pandemic and can take enforcement motion in coming weeks, a Transportation Division official instructed Reuters on Sunday.

U.S. Transportation Secretary Pete Buttigieg on Sunday disclosed the passenger refund probes have been full and stated 10 extra airline probes stay ongoing.

“We’ll collaborate with airways after they’re able to take steps which might be constructive and proactive, whether or not that is enhancements in pay which might be serving to with hiring or flexibility in customer support,” Buttigieg instructed Fox Information Sunday. “We’re additionally going to implement passenger and client rights.”

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Neither Buttigieg nor the division recognized the airways. Buttigieg stated the federal government has been investigating airways “failing to supply refunds to passengers after they acquired caught with cancellations.” He stated the probes are “to ensure that the shoppers and passengers are protected.”

In September 2021, the U.S. Transportation Division (USDOT) stated it had 18 pending investigations over complaints that airways failed to supply well timed refunds throughout the COVID-19 pandemic.

Airways for America, an business group, stated on Sunday, “We look ahead to working with the federal authorities to establish and resolve shared challenges to reduce disruptions and guarantee secure, seamless journey.”

Air Canada (AC.TO) in November agreed to a $4.5 million settlement to resolve a USDOT investigation into claims that hundreds of air passenger refunds have been delayed.

In June 2021, USDOT stated it was searching for a $25.5 million tremendous in opposition to Air Canada over the provider’s failure to supply well timed refunds, alleging the airline had a no-refund coverage in violation of U.S. legislation for greater than a yr.

USDOT has stated it plans to difficulty guidelines on refunds for shoppers who’re unable to journey on account of authorities restrictions. Present laws don’t deal with refund eligibility underneath particular circumstances, reminiscent of government-imposed journey restrictions.

Final month, Buttigieg met with airline chief executives to attempt to make sure summer time flight schedules are adopted after a spate of cancellations. Airways have canceled or delayed hundreds of flights, angering shoppers. Airways have blamed air site visitors management staffing points on the Federal Aviation Administration for a lot of the issue.

Buttigieg stated: “We have seen some enchancment over the course of the summer time, however nonetheless not an appropriate stage by way of efficiency, cancellation and delays.”