Airlines rapped for difficulties in securing refunds

AIRLINES including Ryanair have been accused of imposing inexplicably high administrative fees to deter passengers who cancel their flights from reclaiming airport taxes and other charges.

The UK Air Transport Users Council yesterday criticised the policy of many airlines with regard to the refund of taxes, fees and charges (TFCs) when passengers fail to take their planned flights.

A survey of many leading airlines showed the vast majority only refunded TFCs subject to administration fees.

The cost of such fees ranged from £25 (€36.90) per booking with British Midlands to £25 per sector with FlyBe. Ryanair insists that it only refunds government taxes and imposes an administrative charge of £15 (€22.10) per booking. Ryanair’s administration fee in Ireland is €23.

Only three airlines, Air France, Alitalia and Tap Air Portugal, refunded all TFCs without imposing any charge on passengers.

Aer Lingus was not included in the survey, although it is understood the airline refunds all airport taxes and charges for a €15 administration fee.

However, the British aviation consumer watchdog expressed concern that administration fees charged by many airlines bore no relation to the actual cost of processing claims for refunds.

“We question whether the fees bear any relation to the administrative burden on airlines. They seem designed solely to dissuade passengers from claiming in the first place,” said an Air Transport Users Council spokesperson.

He added “Often the administration fee is more than the refund of the TFCs would be.”

For example, a return flight with Ryanair from Dublin to London Stansted includes a cost of €32.73 for TFCs, of which only a €9.99 British government tax can be reclaimed. In reality, nobody will claim such a refund when Ryanair imposes an administration charge of €23.

A return flight with Aer Lingus from Dublin to London Heathrow costs €63.91 in TFCs. Consumer groups claim passengers are correct to believe airlines are not entitled to hold on to TFCs in the event of cancellations.

It is estimated that Ryanair may earn €39m each year by retaining taxes and airport charges levied on about two million passengers who fail to take their flights.

Ryanair claims a €16.95 passenger service charge (PSC) imposed on its passengers using Dublin Airport relates to landing, parking, air traffic control and passenger fees as well as a €3.90 security charge.

A Ryanair spokesperson said yesterday it was the airline’s policy that all fares were “non cancelable”.

“This is agreed by passengers at the time of booking. Any passengers who can’t travel on their original booking can avoid any financial loss by using Ryanair’s flight changing facility on line,” said the spokesperson.

However, he declined to explain why Ryanair differentiated between government taxes and other fees like airport charges for offering refunds.

Ryanair pointed out that its administration fee of €23 for refunds of government taxes was among the lowest of any airline.

A spokesperson for Aer Lingus could not be contacted for comment.