Eugene, Oregon
United States
San Francisco State, University of Oregon
San Francisco, Honolulu, Eugene
Kindness is the language which the deaf can hear and the blind can see. - Mark Twain
Sidelines: A Consumer Advocate's Wish List for 2009 (Part 1 of 3)Alert: Flight Cancellation Refunds
April 11, 2008
The airline maintenance debacle this week generated quite a number of emails. I heard from several readers stranded by the MD80 inspection mess and who were denied refunds by their airline. Instead, the airline offered only to rebook them or give them a flight coupon.
Aren’t they obligated to give a refund? Not necessarily. Congress failed to renew certain airline regulations two years ago. Since then, the responsibility of airlines to provide refunds for cancelled flights is in question.
Even if the airline declines to give you a refund directly, you may have another option… if you paid by credit card. Every business that accepts credit cards signs a merchant services agreement with the card provider—VISA, MasterCard, American Express, et al. The terms of the merchant services agreement require clearly stated refund policies. For airlines, those policies are delineated in their “Conditions of Carriage” agreement.
Most airline’s agreements have language that requires them to give you a refund if the flight is cancelled due to their misdeed. In this case, the failure to follow FAA maintenance procedures is clearly the responsibility of the airline. Since they didn’t obey the rules--you shouldn’t be penalized. Therefore, i f you have been stranded, call your credit card company and challenge the charge on the basis that the promised service was not provided.
Even if the delay is the airlines fault, a refund is not guaranteed. American Airlines has subtly edited the portion of their Conditions of Carriage agreement that deals with “involuntary” refunds.
Involuntary Refunds
In the event the refund is required because of American’s failure to operate on schedule or refusal to transport, the following refund will be made directly to you -
1. If the ticket is totally unused, the full amount paid (with no service charge or refund penalty), or
2. If the ticket is partially used, the applicable fare for the unused segment(s).
AA shall not be obligated to refund any portion(s) of a ticket which does not reflect a confirmed reservation on an AA flight involved in a schedule irregularity, unless such ticket was issued by AA.
-- from the American Airlines "Conditions of Carriage" agreement
The refund is “involuntary” to you, not to them. The first line states that “In the event the refund is required.” However, there is no language in the agreement that ever requires AA to give you a refund. That wording was excised from the agreement post deregulation. Therefore, despite all the language that follows, they can give you back your money and be absolved of any-and-all responsibility regarding your travel.... or not. It's their choice.
You’ve got to love deregulation… first the communications industry, then airlines, energy companies and finally the banks. Four of the industries for which I receive the most customer complaints and in which we’ve seen some of our worst financial disasters… Enron, Bear Stearns, and Pan Am...TWA...ATA...Aloha.
I have been working with Discover Card to get a refund for 6 tickets for $5,099.42 on Aloha Airlines, but they won't pay me until they receive their money. Will some attorney file a class action lawsuit so perhaps we can get our money refunded. Aloha Airlines knew they were going to file bankruptcy when they took my money on January 21, 2008. Any suggestions you have I would appreciate it very much. There has to be hundreds of people who are going through this horrible ordeal trying to get their hard-earned money returned. Thank you. Beverly Allen, 2602 Grant Street, Carson City, NV 89701 phone 775-882-5346, e-mail bevkallen@yahoo.com
AARP (aarp travel website) should refuse to do business with corporations who use ambiguous language to cheat people out of their money. It also damages AARP's reputation, because of their sponsored travel website, when airlines go bankrupt, cancel, delay, etc . and deny services already paid for.
AARP's support of the medicare drug bill, (medicare is in serious financial trouble like the airlines) and financial relationship with travelocity make me wonder if my membership is worth it.
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