The Department of Transportation is considering whether to require airlines and travel agencies to give refunds to travelers who choose not to fly during a public health emergency.
The notice of proposed rulemaking is going to be issued in March, according to a senior attorney for the DOT's office of aviation enforcement.
Should airlines be required to give refunds, vouchers or credits in these instances? What are the government restrictions that are relevant? Should passengers give any documentation? The person said that.
The DOT only requires airlines and travel agencies to give refunds for flights that have been canceled or changed.
Matthew du Mee, chief counsel for the consumer litigation unit of the Arizona attorney general's office, was one of the people who advocated for the DOT to require airlines to give refunds to customers who don't travel because of Covid-19.
"We are in an unprecedented situation where Covid-19 has an impact on every aspect of consumer travel," de Mee said.
The Big Three of United, Delta and American do not give refunds for non-refundable tickets unless a flight is canceled.
Industry advocates argued that consumers can choose to pay more for a ticket if they so choose. Airlines have been able to offer low prices for consumers who are willing to fly without refunds by selling both refundable and non-refundable tickets, according to Airlines for America chief economist John Heimlich. In 2010, 30% of domestic flyers paid a roundtrip fare of less than $300, he said.
"The ability to offer these really low end fares is tied to the ability to offer these trades with consumers, to say in return, 'you're going to give me a greater degree of revenue certainty,'" he said.
ASTA's executive vice president of advocacy weighed in on the topic. The ASTA believes that airlines should be required to give refunds since most of the time it is airlines that hold the consumer's money.
He said that ASTA supports refund requirements even when a flight is not in use. When a ticket holder doesn't want to fly because of new rules in their destination, that's an example of a situation in which government restrictions are instituted after a ticket is purchased.
As part of the March rulemaking, the DOT plans to develop a more specific definition of what constitutes a significant schedule change.
