(Alliance News) - The UK competition watchdog is investigating International Consolidated Airlines Group SA's British Airways and Ryanair Holdings PLC, believing the two airlines may have broken consumer law by failing to offer refunds for flights that customers could not legally take.
The UK Competition & Markets Authority has opened enforcement cases into both firms over concerns that, during periods of lockdown across the UK, BA and Ryanair refused to give refunds to consumers that were lawfully unable to fly.
The firms instead offered vouchers or the option to rebook.
The move to open the enforcement case follows the CMA's investigation into the airline sector in December 2020.
"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," the regulator explained.
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."
BA and Ryanair have the opportunity to respond to the CMA's concerns.
Shares in IAG were 1.1% higher in London on Wednesday morning at 200.27 pence each, while Ryanair was up 0.5% at EUR16.61.
By Paul McGowan; paulmcgowan@alliancenews.com
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International Airlines (IAG)