BA and RYA probed over refunds9 Jun 2021 09:16
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(Alliance News) - The Competition & Markets Authority said Wednesday it is probing whether British Airways and Ryanair have broken UK consumer law over ticket refunds.
The CMA has opened enforcement cases into both firms over concerns that, during periods of lockdown across the UK, BA, part of International Consolidated Airlines Group, and Ryanair refused to give refunds to consumers that were lawfully unable to fly. The firms instead offered vouchers or the option to rebook.
"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," said CMA Chief Executive Andrea Coscelli.
The probe into flight refunds comes as an industry body warned the "failed and damaging" traffic light system for international travel must be abandoned if the UK travel and tourism sector is to be saved from total collapse.
London-based World Travel & Tourism Council said the UK government must scrap the system which has "wreaked havoc" among consumers and businesses in order to save hundreds of thousands of jobs, PA reports.
The risk-based system with red, amber and green ratings for countries around the world determines the quarantine and coronavirus testing requirements people face when returning to the UK.
But Portugal being moved from the green to amber caught many holidaymakers by surprise and left thousands of UK tourists scrambling to get home before new quarantine rules came into force on Tuesday morning.
It led to the government facing accusations it had not kept to promises over a "green watchlist" that would have given travellers increased warning about a country potentially coming off the safe list.
The WTTC said that moving to a more transparent and easier to understand system will restore consumer confidence and provide a "much-needed" boost to the travel and tourism sector.
IAG shares were up 0.6% early Wednesday, while Ryanair shares were up 0.1%.