Proactive Investors - Another summer holiday period packed with flight cancellations has seen holiday firms and consumer group Which? bluntly call on the government to hit airlines with penalties.
In a letter addressed to prime minister Rishi Sunak, the likes of Thomas Cook Group (LSE:TCG) and On the Beach Group (LSE:OTB) called for regulator the Civil Aviation Authority to be given the power to directly fine airlines which fail to properly reimburse customers after cancelling their flights.
As of March, some £4.5 million was owed to customers through county court judgements, showing customers have “nowhere to turn but the courts” for reimbursements, they argued.
From last-minute cancellations to delays on refunds @RishiSunak needs to show his support for passengers who are sick and tired of being let down by airlines.Today, we have written to him to ask him to make sure that airlines breaking the rules face hefty fines.#ThisWontFly pic.twitter.com/GGDdgXXs8F
— Which? (@WhichUK) August 21, 2023
No airlines have faced fines in the UK over a failure to reimburse customers in 20 years, Which? previously argued, despite obligations to re-route, offer accommodation to or even refund passengers.
“Every year we're seeing disruption and every year newspapers and news broadcasts are full of unacceptable images of holidaymakers struggling to navigate airline customer services.
“Yet, the airlines' regulator is without the powers to hold them properly to account,” the letter said.
The likes of IAG-owned British Airways (LON:ICAG), easyJet (LON:EZJ) PLC and Ryanair (LON:0RYA) Holdings PLC (LSE:RYA) have faced fines in other countries over substandard customer service since the pandemic.
A lack of direct enforcement powers means the UK’s Civil Aviation Authority is currently limited to taking airlines to the courts over issues with redress.