The United States’ automatic refund rule for airlines came into full effect on October 29, making it mandatory for airlines to provide prompt cash refunds for passengers.
Air New Zealand outlines in its information for agents that the new rules apply to any journey to, from or transiting the US, regardless of the carrier, where the ticket was purchased or where the passenger commences their journey, reports the New Zealand Herald.
According to the US Department of Transportation’s (DOT) latest social media post on the subject, passengers are entitled to a refund if a flight is cancelled or significantly changed and the passenger does not accept the significantly changed flight, or a rebooking on an alternative flight or alternative compensation.
A ‘significantly changed flight’ is defined by the DOT as a flight with a departure or arrival time changed by more than six hours, a flight with additional connection points, a flight where the passenger is seated in a lower cabin than originally purchased, a flight departing from a different airport or flights with changes to connecting airports or aircraft, when the passenger has a disability.
This applies to both controllable and uncontrollable situations. “As an agent, you must inform customers of their eligibility to receive a refund if they choose not to travel,” said Air New Zealand.
Passengers are also entitled to a refund of their checked baggage fee if the baggage does not arrive within 12 hours of the passenger’s domestic flight arrival or within 30 hours of the arrival of an international flight.
Passengers are also entitled to a refund if they paid for an ancillary service and the airline failed to provide this service.
The refund, according to Air New Zealand, can be requested by an agent’s GDS system within 12 months from the date of issue.
Cathay Pacific released a similar guideline for travel agent partners. “Travel agency partners are expected to manage refund requests on behalf of customers on a timely basis in strict accordance with the new rules,” the airline said.
Once the airline has made the full refund to the travel agent, the agent must process the refund within the required timeframe. The entire process must be completed within seven business days for credit card purchases and within 20 days for cash purchases.
Cathay Pacific recommends that agents review the new rules themselves and says it reserves the right to take action against agents who fail to comply with the rules.
The new regulations follow a global trend towards stricter protection for passengers, a trend that has not extended to South African legislation yet, as reported by Travel News.