Saturday

3rd Jun 2023

EU commission sticks to cash refunds for cancelled trips

  • Cash refunds are legally binding - but about a dozen countries are hoping to waive that responsibility for their airlines, in favour of vouchers (Photo: Vladimir Kud)

The EU called on all member states on Wednesday (13 May) to stick to EU rules on passenger rights for booked journeys cancelled due to the coronavirus pandemic - but stayed away from starting legal proceedings against EU countries over the issue of cash refunds.

Transport commissioner Adina Valean said she, along with justice commissioner Didier Reynders, will write to all member states, reminding them to adhere to EU legislation guaranteeing the option of cash refunds to passengers' whose trips have been cancelled due to the ongoing restrictions.

Read and decide

Join EUobserver today

Become an expert on Europe

Get instant access to all articles — and 20 years of archives. 14-day free trial.

... or subscribe as a group

"Commission Reynders and I want to ensure that people's right to be reimbursed for their cancelled trips is respected," Valean said.

"Member states are primarily responsible for implementing EU legislation," she added.

Recently 15 member states asked the EU executive to temporarily suspend cash refund rules, and instead allow for a voucher-only option - as airlines have been bleeding revenues due to the pandemic.

Valean said that, for now, the commission is not starting so-called infringement procedures against member states which are not enforcing EU rules on passengers' rights.

"I really hope, because we are all in a crisis together, that very soon all these problems will be solved by member states. It is up to them to make the their companies apply the law. If this will not be the case, of course, we will have infringements, probably very soon," Valean said.

EU officials, however, said earlier that around a dozen member states are already in breach of EU rules regarding compensation to passengers.

There was confusion about the legal probes, as earlier on Wednesday, commission vice-president Margrethe Vestager said the proceedings have been launched - but later withdrew that.

Infringement procedures take years to conclude, so it would not mean immediate help for those who hope to receive cash reimbursements soon.

The commission on Wednesday published recommendations to EU countries on how to make vouchers more attractive for consumers.

These include having EU governments set up schemes protecting vouchers against insolvency, make the vouchers valid for any services the operator offers, increasing the time frame for vouchers to a minimum of one year, and making them transferable.

Cash refunds are also guaranteed by EU rules in case of package trips.

"The starting point is that EU consumers have a right to a cash refund if that is what the want. Full stop," Vestager said.

"Many companies have come under pressure. This liquidity crunch would be less severe if customers adopted vouchers instead of cash refunds," the Danish politician however noted.

Airlines have asked for over €30bn in state aid, over €12bn of which had been agreed, according to the Transport & Environment, an NGO campaigning for cleaner transport.

The commission said there has been an approximate 90 percent decrease in air traffic compared to a year ago.

The executive also pointed out that travel and tourism sectors in the bloc reported a reduction of bookings in the range of 60 percent to 90 percent compared to the same period last year.

The commission also warned that if "organisers or carriers become insolvent, there is a risk that many travellers and passengers would not receive any refund at all".

EU Commission clash with countries over travel refund

Twelve EU countries have asked the commission to temporarily suspend rules that require travel operators to provide cash refunds for cancelled trips. The commission argues consumers have to be protected - and that vouchers should be made more attractive.

New rules coming for Europeans' summer travel

The commission will out forward guidelines for safe travel, as some member states and companies are already drawing up plans to restart tourism under the threat of the pandemic.

EU to unveil summer holiday plans amid Schengen fears

The European Commission is set to announce a three-phase approach on Wednesday to gradually reopen internal borders. However, concerns over how the principle of free movement in the EU will be affected is growing - as countries announce different approaches.

Vestager hits back at Lufthansa bailout criticism

Commission vice-president in charge of competition Margarethe Vestager argued that companies getting large capital injections from the state during the corona crisis still have to offset their competitive advantage.

EU states agree on corona hygiene standards for aviation

German transport minister, Andreas Scheuer, announced that EU member states have agreed on common hygiene standards on planes and airports - as major airlines are calling for a joint coronavirus-testing programme in order to resume trans-Atlantic travel.

Column

What a Spanish novelist can teach us about communality

In a world where cultural clashes and sectarianism seems to be on the increase, Spanish novelist Javier Cercas (b.1962) takes the opposite approach. He cherishes both life in the big city and in the countryside.

Latest News

  1. Spanish PM to delay EU presidency speech due to snap election
  2. EU data protection chief launches Frontex investigation
  3. Madrid steps up bid to host EU anti-money laundering hub
  4. How EU leaders should deal with Chinese government repression
  5. MEPs pile on pressure for EU to delay Hungary's presidency
  6. IEA: World 'comfortably' on track for renewables target
  7. Europe's TV union wooing Lavrov for splashy interview
  8. ECB: eurozone home prices could see 'disorderly' fall

Stakeholders' Highlights

  1. International Sustainable Finance CentreJoin CEE Sustainable Finance Summit, 15 – 19 May 2023, high-level event for finance & business
  2. ICLEISeven actionable measures to make food procurement in Europe more sustainable
  3. World BankWorld Bank Report Highlights Role of Human Development for a Successful Green Transition in Europe
  4. Nordic Council of MinistersNordic summit to step up the fight against food loss and waste
  5. Nordic Council of MinistersThink-tank: Strengthen co-operation around tech giants’ influence in the Nordics
  6. EFBWWEFBWW calls for the EC to stop exploitation in subcontracting chains

Stakeholders' Highlights

  1. InformaConnecting Expert Industry-Leaders, Top Suppliers, and Inquiring Buyers all in one space - visit Battery Show Europe.
  2. EFBWWEFBWW and FIEC do not agree to any exemptions to mandatory prior notifications in construction
  3. Nordic Council of MinistersNordic and Baltic ways to prevent gender-based violence
  4. Nordic Council of MinistersCSW67: Economic gender equality now! Nordic ways to close the pension gap
  5. Nordic Council of MinistersCSW67: Pushing back the push-back - Nordic solutions to online gender-based violence
  6. Nordic Council of MinistersCSW67: The Nordics are ready to push for gender equality

Join EUobserver

Support quality EU news

Join us