British Airways and Ryanair are investigated by competitions watchdog over failure to offer refunds to customers for flights they could not take during Covid pandemic
- Competition and Markets Authority is probing the airlines over the flights
- British Airways offered vouchers or rebookings, while Ryanair offered rebook
- BA were defiant and accused government of 'punishing an industry on its knees'British Airways and Ryanair are being investigated over whether they breached consumer laws by not offering refunds for flights customers could not take during the coronavirus pandemic.
The Competition and Markets Authority (CMA) said the companies should have issued refunds for the trips that had been scheduled during lockdown restrictions.
Investigators will be writing to both airlines and will also look at whether refunds should have been given where flights took place but non-essential travel was banned due to lockdown restrictions.
Today BA were defiant and accused the government of 'punishing an industry on its knees', while Ryanair said it 'welcomed' the probe.
During the pandemic BA offered vouchers or rebookings, while Ryanair provided the option to rebook, the CMA added. Legally, customers are entitled to a cash refund within 14 days.
The watchdog said: 'The CMA is concerned that, by failing to offer people their money back, both firms may have breached consumer law and left people unfairly out of pocket.
'It is now seeking to resolve these concerns with the companies, which may include seeking refunds, or other redress, for affected customers.'
CMA chief executive Andrea Coscelli said he did not want the public left out of pocket
BA said it had issued well over £3m of refunds during the pandemic to customers so far
Ryanair looked at refund requests on a case by case basis and has paid out in justified cases
CMA chief executive Andrea Coscelli added: 'While we understand that airlines have had a tough time during the pandemic, people should not be left unfairly out of pocket for following the law.
'Customers booked these flights in good faith and were legally unable to take them due to circumstances entirely outside of their control. We believe these people should have been offered their money back.'
The agency added that it should not be assumed either airline has broken the law.It comes after the CMA launched enforcement action against several package holiday firms, forcing them to agree to offer cash refunds to customers.
Last month, package holiday firms Teletext Holidays and Alpharooms agreed to hand back £7 million to customers who saw their holidays cancelled due to the Covid-19 pandemic.
It follows similar agreements made by LoveHolidays, Lastminute.com, Virgin Holidays and Tui UK, after thousands of customers complained that the companies had failed to refund them for cancelled trips.
BA staff talk to each other as passengers stand in a queue to check-in desks at T5 departures
Travellers at Heathrow airport in London arriving back from Portugal after it was on amber list
The travel sector has been one of the hardest hit during the pandemic and has faced the most scrutiny from the CMA, which wrote to more than 100 firms reminding them of their responsibility to process all refunds within 14 days by law for any cancellations.
A BA spokesperson said: 'During this unprecedented crisis we have issued well over £3m refunds and helped millions of our customers change their travel dates or destinations and we're grateful to them for their ongoing support.
'We continue to offer highly flexible booking policies at the same time as operating a vastly reduced schedule due to Government-imposed travel restrictions, and we have acted lawfully at all times.
'It is incredible that the Government is seeking to punish further an industry that is on its knees, after prohibiting airlines from meaningful flying for well over a year now.
'Any action taken against our industry will only serve to destabilise it, with potential consequences for jobs, business, connectivity and the UK economy.'
A spokesperson for Ryanair signalled it was not worried about the probe.
They added: 'Ryanair today welcomed the UK CMA's update on its review of airline policies on refund requests made by UK consumers whose flights operated during periods of lockdown.
'Ryanair has approached such refund requests on a case by case basis and has paid refunds in justified cases.
'Since June 2020, all our customers have also had the ability to rebook their flights without paying a change fee and millions of our UK customers have availed of this option.'
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