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News / Airlines Decry Lack of Leadership and Clarity from European Commission Recommendations on Use of Travel Vouchers
The lack of leadership from the EC could even contribute to the financial distress of airlines and the wider tourism industry
Airlines for Europe (A4E), Airlines International Representation in Europe (AIRE), European Regions Airline Association (ERA), and the International Air Transport Association (IATA), representing the collective interests of European airlines, decried unclear and non-binding guidelines from the European Commission on airlines’ use of refundable travel vouchers as an alternative to immediate cash refunds for flights cancelled as a result of the COVID-19 pandemic.
The latest EC Recommendation is disappointing and confusing both for airlines and their passengers because:
- The recommendations are non-binding but raise certain expectations about the terms of vouchers. Some airlines may be better placed than others commercially to meet such terms.
- The recommendations may be implemented differently in various countries, only partly, or not at all – thereby creating the risk of market distortion.
- Passengers are left unsure what to expect from voucher schemes depending on where they live, as these could differ across markets.
Faced with up to €9.2 billion in cash reimbursements through the end of May—due to a regulation which was never designed to deal with mass cancellations caused by a global pandemic—European airlines since March have urged the EC to propose an emergency amendment to Regulation 261/2004 in support of refundable travel vouchers, or delayed reimbursement of tickets, instead of the current seven-day reimbursement period.
No less than 16 EU Member States representing 70% of EU citizens have expressed their support for the temporary voucher solution. This is also the approach taken by other countries such as Canada.
The associations call upon the EU Member States in the Council to ensure that a harmonized approach to reimbursements and vouchers during COVID-19 is achieved through a temporary adjustment of the current passenger rights framework.
For more information, please visit iata.org.
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