UK scraps action against Ryanair, British Airways over refunds

LONDON, Oct 7 (Reuters) - Britain's competition regulator
scrapped its action against Ryanair and British Airways over
their failure to offer refunds to passengers prevented from
flying by COVID-19 restrictions because it said a lack of legal
clarity made the outcome uncertain.

During pandemic lockdowns, instead of offering refunds to
those legally unable to fly, IAG-owned British Airways
offered vouchers or rebooking and Ryanair providing the option
to rebook.

The Competition and Markets Authority (CMA) started action
against the airlines in June, saying passengers who were legally
unable to take flights booked in good faith should have their
money back.

But it said on Thursday the law did not provide passengers
with a sufficiently clear right to a refund in such unusual
circumstances, and it could not therefore justify continuing to
pursue its action.

Chief Executive Andrea Coscelli said the CMA "strongly
believed" the passengers should be offered a full refund.

"However, after considering the relevant law and gathering
evidence in our investigation, we have concluded that the length
of time that would be required to take this case through the
courts, and the uncertain outcome, can no longer justify the
further expense of public money," he said.

He added the CMA hoped the law would be clarified.

Ryanair said it welcomed the decision to close the
investigation.

"We operated a limited schedule during UK lockdowns for
customers who travelled for essential reasons," a spokesperson
said.

"Passengers had the option to change their bookings without
paying the flight change fee and many availed of this option."
(Reporting by Paul Sandle; Editing by Alistair Smout)