On the 14th, the Federal Department of Transportation issued an immediate refund order totaling $600 million and “withdrawal of fines” to six airlines, including Frontier, for delaying refunds to passengers despite reasons such as flight cancellations or delayed departures.
The airlines that were fined this time are Denver-based Frontier Airlines, Air India, TAP Portugal, Aero Mexico, El Al and five foreign airlines, including Avianca. Frontier was hit with a $2.2 million fine, the most of the six airlines, while other foreign airlines were fined between $750,000 and $1.4 million.
Federal Transport Minister Pete Buttigieg said, “If a flight is canceled, airlines must immediately return airfare to customers who want a refund, but airlines that fail to do so are subject to fines.” Buttigieg added: “A flight cancellation is a frustrating enough situation from a passenger’s point of view,” adding, “We shouldn’t have to wait months for a refund.”
Current federal law requires airlines to refund passengers instead of crediting them if a flight is canceled or delayed significantly, or if a passenger abandons the trip in these circumstances. In addition, when boarding is canceled due to a passenger’s personal circumstances, the airline usually provides a voucher, but the airline may return cash at its discretion.
In August, the federal Department of Transportation issued proposed rules to protect passengers who have had their flights canceled and want refunds. But the American and International Aviation Association (AIAA), which represents US and foreign airlines, has yet to take a clear position on the Department of Transportation’s regulations.
The Ministry of Transport is reviewing new regulations, which include refunding airfare for passengers who miss their flights due to illness, and posting actual ticket prices, including fees, on flight booking sites.
Meanwhile, the Ministry of Transport announced that the advisory committee will collect public opinion and submit detailed air ticket refund rules by December 9.