https://www.nerdwallet.com/article/travel/money-flight-cance...
> To be clear, passengers flying in the U.S. are already entitled to refunds when a flight is canceled or significantly delayed. No matter the cause — weather-related or not — airlines must pay passengers back for the unused portion of their ticket if the passenger ultimately chooses not to fly. It’s worth noting that the DOT does not define what constitutes a “significant delay.”
https://www.nerdwallet.com/article/travel/do-airlines-owe-yo...
The only thing I saw in this article that I don’t like is that they can still issue vouchers. And I didn’t see anything that said the vouchers had to be for more than the cash payment.
So I’m guessing if you miss your flight and are entitled to $300 (to pick an amount) they’ll be very happy to instantly give everyone a voucher for $100 off. Thus saving $200/head unless people know their rights.
How about: you must issue cash refunds PERIOD. No voucher nonsense.
Still, this is great.
From https://www.transportation.gov/briefing-room/biden-harris-ad... (linked in TFA):
The final rule improves the passenger experience by requiring refunds to be:
Automatic: Airlines must automatically issue refunds without passengers having to explicitly request them or jump through hoops.
Prompt: Airlines and ticket agents must issue refunds within seven business days of refunds becoming due for credit card purchases and 20 calendar days for other payment methods.
Cash or original form of payment: Airlines and ticket agents must provide refunds in cash or whatever original payment method the individual used to make the purchase, such as credit card or airline miles. Airlines may not substitute vouchers, travel credits, or other forms of compensation unless the passenger affirmatively chooses to accept alternative compensation.
Full amount: Airlines and ticket agents must provide full refunds of the ticket purchase price, minus the value of any portion of transportation already used. The refunds must include all government-imposed taxes and fees and airline-imposed fees, regardless of whether the taxes or fees are refundable to airlines.
Always blows my mind that companies can take money _instantly_ from my credit card yet require 3-7 business days to refund it.
I know what you're doing you greedy fucks.
They are far more cautious about giving leeway on the conduct of the consumer than that of the merchant.
3-7 business days gives the merchant’s bank long enough to debit the funds, ensure they exist, then send them back, with a buffer for errors.
The bad news is that it will be decades before most major payment systems move to it.
I haven’t worked in fintech long enough to tell you why it was modeled to take so long, but I would hazard a guess that it’s because the primary method of moving money was paper checks and physical card impressions until the last couple decades.
The cost to the customer is usually more than the price of the flight. Maybe they are late to another flight and since that will be their "fault" they will not be refunded. Maybe they miss a job interview, etc. Life isn't fair and what is owed is owed.
In fact, they have such great legal and accounting armies that I'm sure they can claw back those taxes from the IRS.
I am anti-airline here, I am loving where we are going with these things. But I don't agree with this: many delays happen precisely because they are doing their jobs right. This could be weather-related delays, observed mechanical issues, unexpected crew illnesses (note the plural), etc. And over the course of a day, these issues compound.
I think the government should refund the airlines the government taxes/fees for canceled/delayed flights due to weather or mechanical issues at least.
How often do you think airlines are filing taxes?
> The refunds must include all government-imposed taxes and fees and airline-imposed fees, regardless of whether the taxes or fees are refundable to airlines.
This is the provision I am responding to. If the airlines must refund the full value to the consumer, I do not see why the government should not also be refunding the airlines.
And I strongly contest the idea that any delay is a problem the airline themselves created. In fact, I believe the assertion is absolutely dead wrong. There are many externalities to on-time arrivals and departures that airlines cannot control. How could it possibly be an airline's fault if an airport hasn't cleared its runways of ice, or if a tornado is within 5 miles of the landing strip?
Of course I also believe airlines will disingenously attribute delayed departures to these externalities if able to, even if they are actually at fault, so I'm not sure what the "right" solution is here.
They've failed to manage supplier risk.
This is the comment from the OP that motivated me to comment. I think that is a definitively incorrect conclusion.
All of these costs should be part of doing business. You do not keep a dime form customers if they did not receive service, even if by an act of God.
If your business fails, then it failed. If others succeeded, then they were better then you or you got unlucky, and it's no one's job to make you lucky.
How often do you see businesses screwing over customers just because they can? You arrive late to a flight due to unforeseen circumstances, and the airline will not refund you, no matter what you do. Why should you accept this from them?
I feel very strongly about this because I have experienced how predatory these companies are. Last time I was on vacation, there was a natural disaster, and I could have let them keep my money just to support them. But after I landed there (having paid for the stay in full), I was presented with a resort fee of close to $500. They know I had nowhere else to go, so they took advantage. Well, it felt really great clawing all that money back after spending 2 days there. This feeling, they feel this every day when screwing customers.
It's my understanding that taxes aren't collected until well after the flight (service) has been fulfilled, and cannot be collected when it has not.
> "The fee is collected by air carriers from passengers at the time air transportation is purchased," according to TSA. "Air carriers then remit the fees to TSA."
(From https://thepointsguy.com/guide/taxes-and-fees-airline-award-...)
Whether or not the taxes or fees are eligible for a refund to the airline (or don't have to be paid; payment of those will often be delayed) depends on the specific law applicable to each tax or fee, but with the new rule, that's the airline’s issue—they have to refund it to the customer whether or not the airline is still on the hook for it.
The due date for submitting the previous quarter’s taxes will generally be late enough that the merchant can wait until most items or services sold at the end of the previous quarter have been delivered or performed.
If you have to refund a customer after you have submitted your taxes you can take the amount of tax that was included in the refund as a credit the next time you file with with the government.
Sounds complicated.
https://www.transportation.gov/briefing-room/biden-harris-ad...
If only that were the law in the US.
Hopefully now that the refund entitlement is automatic, vouchers will only make sense if they can beat the cash offer.
- (email) Delta: Your flight has been cancelled, and we are unable to rebook you onto another at this time. We're sorry for the inconvenience. Here is a voucher for a travel credit within the next year.
- (phone call) Me: Hi, I got this e-mail. I would like a refund for the flight.
- Delta: Oh, well, right now we're offering a travel voucher.
- Me: I saw that. I don't want a voucher. I paid for a flight, and that flight didn't happen, so now I want my money back.
- Delta: Well, that's not our policy.
- Me: Actually, I'm reading your current contract of carriage for domestic flights right now, and it says that you DO give refunds for cancellations upon request. And that makes sense, because I'm also looking at the federal regulations, which say that you are required to do that. So it is definitely your policy to offer refunds upon request. And I'm requesting.
- Delta: Oh. Well. I can put in a ticket, and we'll see what happens, but I can't guarantee anything...
and then a little while later I got a notice saying my refund was approved. It was a ridiculous runaround that never should have been allowed in the first place.
This is where I love the EU legislation. A part of having a flight delayed or cancelled is that the airline needs to inform you about your rights.
It was kind of amusing how she just went on Lufthansa's social media accounts and kept complaining.
The legislation really doesn't work as well as people think it does.
https://www.eccnet.eu/consumer-rights/what-are-my-consumer-r...
However, you can pay with a credit card and document the blatant rule breaking to them. They will refund you and bear legal risks. and unless you are in the wrong, the airline won't do. more about it.
I had a case with SAS some years ago, where mastercard simply refunded me. that was it.
But the flight was canceled with less than 24 hours notice, so there were also statutory damages of €600/person (EU law), which in my case only covered the cost of my ongoing flight (booked separately, but same airline). It took two years to have the statutory damages rewarded, and after the legal fees didn't even cover the cost of the missed flight.
Companies should actually follow the law without having to be sued. Having to sue companies by default to get them to follow the law isn't a fundamental property of the rule of law. There's even a whole industry just created to enforce airline claims, because the companies ignore them with such impunity.
By all means, suppress yourself to a regime of ultra large companies, if that makes you feel more safe – in this case you are merely paying protection money and the system you support is just like the mafia.
In the EU they do take another route: They try to make grounds for a more competitive environment such that anti-consumer behaviour does not make sense.
That is also why you don't see ultra large tech companies in the EU. And for consumer, that is a good thing, because it keeps companies in check.
I can furthermore say that I indeed has flown with this airline since.
Tech is different because the advantage of scale is huge. And Europeans use Facebook, iPhones, Google, just like everyone else so it's not like the competitive environment makes a difference in tech...
I've made out quite well on United. I had 2 flights back from London to NY where I accepted a 3 hour delay (with lounge access) and made a total over of $2500 in vouchers. The terms were generous too—a year to use them (extended by a year because it was around the pandemic), and you could partially use them, it just added to a "voucher balance" you could draw from.
No, you made out poorly. Wouldn't you prefer to have been paid more?
>The terms were generous too—a year to use them
Are you for real? That's not generous.
And it ended up being around 3 or 4 years, but because of the pandemic. I honestly don't remember the original amount, 1 or 2 years. Either way I had no issue using them. I was even able to use them to pay for another traveler as long as I was also on the booking (bought my mother a ticket).
Side note: No need for this dismissive tone, my statements were obviously subjective—one person's generous can easily be another person's disappointing. So you're in violation of two HN guidelines:
> Be kind. Don't be snarky. Converse curiously; don't cross-examine. Edit out swipes.
> Please don't post shallow dismissals, especially of other people's work. A good critical comment teaches us something.
Airlines _will_ frequently offer voluntary benefits in excess of this amount to maintain good relationships, and gate agents for, say, Delta, can even offer as high as nearly $10k [1], which is kind of crazy: you'd think they'd just fall back on the involuntary limits.
[1] https://www.cbsnews.com/news/delta-10000-offer-to-switch-fli....
If you don't volunteer, you're much more likely to stay on the flight and not be paid anything.
https://www.cbc.ca/news/business/united-airlines-flight-over...
> Searches for ‘Volunteer’ Definition Spiked 1900% After United Airlines Incident
https://time.com/4733425/united-airlines-volunteer-definitio...
I want to see some damn collective organizing. Can you imagine if passengers had started revolting against the idiot agents who abused the person arrested there?
The more pain airlines feel from the ensuing bad PR as a result of the chaos, the better that flying gets for everyone. I want airlines to fear the power of the customer.
As a passenger, I appreciate that my airfares are lower and some airfares have increased flexibility because the airlines have a deep understanding of the turn-up ratio and sell tickets in light of that fact. I appreciate the cases where [probably without my awareness] a flight or cabin crew/member [or maintenance tech and part] has been last-minute flown in to crew/fix a flight that I ended up taking rather than having it be cancelled.
Does it suck to be IDB'd? Sure. Does it happen often? Almost never (around 23 in a million or 1 in 44K embarkations). People in the US are about 5.5 times more likely to be killed in a car crash in a given year than be IDB'd on a given flight.
The airlines just don't want to pay fair market value to get someone off the plane and they get to use violence to get their way.
That means the airline most frequently reaches an acceptable agreement to someone. You might wish that they used some other process, but the process they are using usually gets to an agreement as it is.
> The refunds must be issued within seven days, according to the new DOT rules, and must be in cash unless the passenger chooses another form of compensation. Airlines can no longer issue refunds in forms of vouchers or credits when consumers are entitled to receive cash.
This is the bit. How much you wanna bet they’ll find ways to use this to screw people?
Sure, it's possible some grandma who almost never flies anywhere may still get confused but this new rule is still going to put even that kind of person in a far better position.
Not sure if this will change much in the USA, refunding is not that high of a cost either for airlines.
Same thing with the trains in the UK. We were delayed 3 hours, and our train was overbooked. I went into the LNER (or Virgin - can't remember when it happened) ticketing office in Kings Cross, and the guy at the counter basically told me that I could fill out the form, but if I didn't have a UK bank account they have no method of dispersing funds.
So then I went to a UK bank and was told I couldn't open a bank account without a UK address. So I opened an account with TransferWise (now Wise), and was given a UK bank account through them, but after filling out the form, I never got any reimbursement. So I'm guessing I didn't qualify for some other reason.
I think this is not true
Everyone is going now pay the full, refundable fare rate, so not great if you want cheap tickets.
Although air carriers can offer passengers alternative compensation if the passenger chooses to accept it. For example, vouchers or a lower sum of money and no accommodation. Sometimes they present it as the only option to mislead the passenger.
If challenged in court on refusing to pay out, air carriers sometimes claim extraordinary circumstances which could not have been avoided. This is an exception in the law. But it is for really force majeure events, like real disasters. Meanwhile, airlines often claim that something like the airplane breaking down or an employee calling in sick is extraordinary circumstances. This falls squarely within ordinary day-to-day operations of an airline. So it doesn’t fly in court, but it’s used more as an intimidating tactic to show to the plaintiff that their lawsuit would supposedly fail and to force awful settlement terms.
Lots to be said about airlines trying to weasel out but it generally doesn’t work. Unless the passenger signs that they accept alternative compensation. I know the law doesn’t seem to allow that, but the phrasing is specific enough that it falls within the law.
I thought this was IATA regulations. US travelers are really getting the hard stick herr.
https://www.bahn.de/service/informationen-buchung/bahn-flug/...
In my case I had bought the train tickets separately from DB (online) and the flight tickets directly from the airline (also online). At the airport I have just shown the train tickets and it would have been easy to verify that indeed it had arrived with a huge delay, so it was not my fault.
> Buttigieg reiterated that refund requirements are already the standard for airlines, but the new DOT rules hold the airlines to account and makes sure passengers get the "refunds that are owed to them."
I was glad to get the refund, but when talking about a multiyear timeframe, I feel like I should get my money back with interest.
This was through British Airways.
Companies need to have an incentive to provide a good service.