URGENT reforms are needed to ensure a watchdog can take action against airlines that break the law by failing to refund customers for cancelled flights, a former transport secretary has said.
Conservative peer Lord Young said tens of thousands of passengers had complained to the Civil Aviation Authority (CAA) about “inexcusable delays” in getting compensation.
He pointed to concerns raised by consumer groups that the regulator did not have “the right tools” to take effective enforcement.
Responding to his question on the issue in parliament, transport minister Baroness Vere said: “The Government recognises the challenge consumers and businesses are experiencing regarding refunds for cancelled holidays and flights.
“We are clear that where a flight or holiday has been cancelled consumers have a legal right to a refund, which must be paid.”
Young said: “She will be aware that tens of thousands of passengers have complained to the CAA about inexcusable delays in getting compensation for cancelled flights.
“Will she bring in much-needed reforms, enabling the regulator to take swift and effective action to protect consumers when the law is broken?”
Vere said: “It is the case the pandemic has highlighted a number of challenges and my department is keen to work with the regulator, industry and consumer groups to learn lessons and make changes in future.”
Tory former cabinet minister Lord Pickles said two package holiday companies – Loveholidays and On the Beach – had quit the trade body Abta to avoid paying full refunds on cancellations due to Covid-19.
Vere encouraged people to consider the implications of cancellation when making their travel plans, including if a firm is a member of Abta and if it has Atol protection.
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