US fines airlines more than $7m for not providing refunds
The Transportation Department said on Monday that it had fined a half-dozen airlines a total of more than $7m for failing to provide timely refunds to customers. The department’s intervention contributed to the airlines’ issuing more than $600m in refunds, it said. Frontier Airlines, a budget carrier based in Denver, was fined $2.2m, more than any other company. It was the only US airline penalized as part of Monday’s announcement and has issued $222m in refunds, according to the department. The refunds were meant to compensate passengers for flights that were canceled, significantly delayed or otherwise altered substantially, the department said. “As people get ready to fly this holiday season, I want customers to know that the DOT has their back,” the transportation secretary, Pete Buttigieg, said on a call with reporters. Air India was assessed the second-largest fine, of $1.4m, and TAP Air Portugal was fined $1.1m. The remaining three carriers — Aeromexico, El Al and Avianca — will each pay less than $1m. Including the penalties announced on Monday, the department’s Office of Aviation Consumer Protection has issued a record $8.1m in fines in 2022. In a statement, Frontier said it had issued about $100m in what it described as “good-will refunds” that were not legally required. The airline will pay only $1m of the $2.2m fine because the DoT credited it for providing refunds to passengers who canceled nonrefundable tickets early in the pandemic. The announcement followed months of growing complaints from travelers about flight delays, cancellations and other problems. <br/>
https://portal.staralliance.com/cms/news/hot-topics/2022-11-15/star/us-fines-airlines-more-than-7m-for-not-providing-refunds
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US fines airlines more than $7m for not providing refunds
The Transportation Department said on Monday that it had fined a half-dozen airlines a total of more than $7m for failing to provide timely refunds to customers. The department’s intervention contributed to the airlines’ issuing more than $600m in refunds, it said. Frontier Airlines, a budget carrier based in Denver, was fined $2.2m, more than any other company. It was the only US airline penalized as part of Monday’s announcement and has issued $222m in refunds, according to the department. The refunds were meant to compensate passengers for flights that were canceled, significantly delayed or otherwise altered substantially, the department said. “As people get ready to fly this holiday season, I want customers to know that the DOT has their back,” the transportation secretary, Pete Buttigieg, said on a call with reporters. Air India was assessed the second-largest fine, of $1.4m, and TAP Air Portugal was fined $1.1m. The remaining three carriers — Aeromexico, El Al and Avianca — will each pay less than $1m. Including the penalties announced on Monday, the department’s Office of Aviation Consumer Protection has issued a record $8.1m in fines in 2022. In a statement, Frontier said it had issued about $100m in what it described as “good-will refunds” that were not legally required. The airline will pay only $1m of the $2.2m fine because the DoT credited it for providing refunds to passengers who canceled nonrefundable tickets early in the pandemic. The announcement followed months of growing complaints from travelers about flight delays, cancellations and other problems. <br/>
