Five Democratic senators have proposed a law calling for airlines to refund cash for all canceled flights during the pandemic, whether a carrier canceled or a consumer decided not to fly. Consumer advocates and industry observers say passage is a long shot.
But given industry pushback and lobbying, and the truly dire financial straits U.S. air carriers find themselves in, travelers who've clipped their own wings shouldn't hold out too much hope for passage.
"My sense is that the Department of Transportation is fairly allied with airlines, as opposed to consumers, which is to say they rarely — except in truly unique circumstances — react in favor of customers," he said. While the law is proposed as a consumer-protection measure, "it will end up making carriers less liquid and drive them closer to a solvency event," according to Mann. "I've been involved in the industry for more than 40 years and have never seen anything like this in the sense of draw on cash."
Unlimited passenger refunds would also mean much of the federal aid in grants and loans to airlines might ironically "end up going right back to consumers in the form of refunds," Mann said. "We follow and comply with federal law and regulations on this matter," she said. "U.S. airlines remain committed to making accommodations that are responsive to travelers' needs during this unprecedented time."Require major airlines and third-party ticket sellers to offer full cash refunds for all canceled tickets during the pandemic, whether carriers canceled flights or passengers canceled their tickets.
Make the new rights retroactive to March 1, so passengers who got a travel voucher but did not use it can ask for a cash refund instead.
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