U.S. probing 18 airlines over delayed refund complaints

WASHINGTON, Sept. 9 (Reuters) – The U.S. Department of Transportation announced Thursday that there are 18 investigations pending against airlines over complaints of late refunds amid the COVID-19 pandemic.

The department said in a report to the White House that it was still examining 30,100 complaints across 18 airlines out of 20 investigations originally opened. She didn’t name the airlines.

“The department has put a lot of time, energy and effort into providing relief to consumers and holding airlines to account,” the report said.

The department found that it had completed its investigations into complaints from Air Canada (AC.TO) and United Airlines (UAL.O).

In June, the department announced it had fined Air Canada $ 25.5 million for failing to provide timely refunds to the thousands of consumers who requested them for flights to or from the United States granted. Continue reading

Air Canada has called on the department to reject the complaint because the “arbitrary behavior of the department is clearly contrary to longstanding law”.

The ministry said Thursday that settlement negotiations with Air Canada are “continuing”. Air Canada did not respond immediately.

In June, the Department of Transportation said it would investigate the refund practices of an undisclosed number of US and overseas airlines flying to and from the United States and, if necessary, take “enforcement measures”.

The department said Thursday that it is separately reviewing four overseas airlines that have filed for bankruptcy protection and is “reviewing options on how passengers who received no refunds when the airlines canceled their flights can be compensated.”

In January, the division closed its investigation into United after the airline “took rapid corrective action that resulted in thousands of passengers originally denied refunds receiving required refunds in June 2020 or around June”.

The transportation department is working to increase the number of employees handling consumer complaints by 38%.

The ministry announced plans to introduce refund rules for consumers unable to travel due to government restrictions. Existing regulations do not address the right to a refund in special circumstances, such as: B. Government-imposed travel restrictions.

It also states that at least 9 airlines that originally provided coupons or credits in lieu of refunds for non-refundable tickets have changed their policies to clarify that passengers are eligible for refunds in such circumstances and have made refunds when necessary.

Reporting by David Shepardson; Arrangement by Richard Pullin

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