British Airways and Ryanair cleared over failure to pay Covid refunds
The competition regulator has been forced to drop an investigation into British Airways and Ryanair after concluding that UK law did not protect passengers in a major health crisis such as Covid.
Millions of customers were left waiting months for billions of pounds in refunds for flights they were unable to take because of Covid restrictions.
Typically, airlines must refund customers within seven days of a flight being cancelled.
However, the Competition and Markets Authority (CMA) said that there was a “lack of clarity” in UK legislation.
Because the flights were a result of government Covid restrictions, rather than being cancelled by the airlines, laws were “insufficiently certain” that the CMA would be able to secure refunds for customers of British Airways and Ryanair.
The Government is now facing calls to change the law. Failure to do so could stiffen the resolve of airlines in refusing to refund customers whose travel has been disrupted through no fault of their own.
Andrea Coscelli, chief executive of the CMA, said: “We strongly believe people who are legally prevented from taking flights due to lockdown laws should be offered a full refund and we launched this investigation in the hope that we would be able to secure a positive outcome for consumers.
“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.
“Given the importance of this to many passengers who have unfairly lost out, we hope that the law in this area will be clarified.”
Airline finances came under significant pressure from customers who thought they were entitled to a refund after being unable to fly as the borders were closed.
Carriers faced criticism from customers, who claimed they were being forced to accept vouchers instead.
A spokesman for Ryanair said it welcomed the CMA’s decision to close the investigation. "We operated a limited schedule during UK lockdowns for customers who travelled for essential reasons. Passengers had the option to change their bookings without paying the flight change fee and many availed of this option.”
A spokesman for British Airways said: "During this unprecedented crisis we have acted lawfully at all times, issuing nearly 4m refunds and offering highly flexible booking policies enabling millions of our customers to change their travel dates or destinations.
"We're grateful for their support at a time when we've been navigating dynamic and fast-changing travel restrictions to maintain a limited schedule that ensured vital air connections for travellers and cargo throughout the pandemic."
