Wednesday, March 10, 2010
AIRLINES which fail to repay Government taxes and airport charges to passengers who buy tickets but do not travel may soon face a legal challenge to force them to offer such refunds.
The National Consumer Agency said yesterday that it was considering taking a High Court challenge against airlines which persist in obstructing travellers in getting refunded money to which they are entitled. Airlines including Ryanair and Aer Lingus have been accused of imposing high administration charges to deter passengers who cancel their flights from reclaiming airport taxes and other charges.
A survey by a British consumer watchdog in 2007 expressed concern that administration fees charged by many airlines bore no relation to the actual cost of processing claims for such refunds.
It has been estimated that Ryanair may earn almost €40 million each year by retaining taxes and airport charges levied on about two million passengers who fail to take flights for which they have bought tickets.
NCA chief executive Ann Fitzgerald said yesterday that airlines were being given one final chance to address the issue before the NCA would consider initiating legal proceedings to ensure refunds to passengers. It is expected the NCA would argue in any court action that attempts by airlines to add specific terms to contracts which allow them to impose administrative charges for refunds of taxes and airport charges is contrary to EU legislation governing unfair terms.
Ms Fitzgerald admitted that the issue was "very complex". However, she warned the airlines that the NCA was "nearing the endgame" on the issue.
Ms Fitzgerald said the NCA was taking the lead on the issue, despite the fact that it was something which affected air passengers on an EU-wide basis.
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