What happens when you poke the bear. US DOT to codify refund rules.
#1
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Join Date: May 1998
Location: NYC
Programs: AA 2MM, Bonvoy LTT, Hilton Diamond
Posts: 14,651
What happens when you poke the bear. US DOT to codify refund rules.
Remember Air Canada refusing to refund during COVID and actually went challenged US DOT Consent Order requiring AC to refund? Air Canada's argument was US DOT's position on requiring carriers to refund on cancelled/significantly changed flights was not binding.
Master thread Air Canada Refunds vs credits; Class action lawsuit filed
US DOT is about to making it binding - https://www.federalregister.gov/public-inspection/2024-07177/refunds-and-other-consumer-protections
https://www.transportation.gov/briefing-room/biden-harris-administration-announces-final-rule-requiring-automatic-refunds-airline
Master thread Air Canada Refunds vs credits; Class action lawsuit filed
US DOT is about to making it binding - https://www.federalregister.gov/public-inspection/2024-07177/refunds-and-other-consumer-protections
https://www.transportation.gov/briefing-room/biden-harris-administration-announces-final-rule-requiring-automatic-refunds-airline
#2
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Join Date: Jan 2010
Location: YYZ
Programs: AC SE 100K MM; Marriott Lifetime Titanium, Avis Presidents Club
Posts: 1,090
It's a zero sum game for the airlines...it will just come back in the fares so some will win and everyone will lose.
Not saying I disagree with it, but it will just work it's way in as an input cost to building the fare structure, just like a rise in the price of fuel or wages.
Not saying I disagree with it, but it will just work it's way in as an input cost to building the fare structure, just like a rise in the price of fuel or wages.
#3
Join Date: Jan 2021
Programs: Alaska Airlines MVP Gold, Hyatt Globalist
Posts: 101
Lol I am fine with it
Intra-Europe tickets and tickets to Europe are very cheap still with EU261
The Top 3 Airlines in the world based on Revenue are DL, UA, and AA
https://companiesmarketcap.com/airli...es-by-revenue/
Intra-Europe tickets and tickets to Europe are very cheap still with EU261
The Top 3 Airlines in the world based on Revenue are DL, UA, and AA
https://companiesmarketcap.com/airli...es-by-revenue/
#4
Join Date: Oct 2022
Location: Ottawa, Canada + Edinburgh, Scotland
Programs: AC SE, Star Alliance Gold
Posts: 834
It's a zero sum game for the airlines...it will just come back in the fares so some will win and everyone will lose.
Not saying I disagree with it, but it will just work it's way in as an input cost to building the fare structure, just like a rise in the price of fuel or wages.
Not saying I disagree with it, but it will just work it's way in as an input cost to building the fare structure, just like a rise in the price of fuel or wages.
Some airline travel is relatively insensitive to price, but a lot of it is price-sensitive discretionary travel, and it's not obvious that just baking these costs into ticket prices would be the astute business move for an airline. (It remains striking that the EU market is both the home of very cheap flights and very demanding regulations.)
#5
Join Date: Jun 2019
Programs: Marriott Titanium; WN A-list; UA Silver
Posts: 485
Lol I am fine with it
Intra-Europe tickets and tickets to Europe are very cheap still with EU261
The Top 3 Airlines in the world based on Revenue are DL, UA, and AA
https://companiesmarketcap.com/airli...es-by-revenue/
Intra-Europe tickets and tickets to Europe are very cheap still with EU261
The Top 3 Airlines in the world based on Revenue are DL, UA, and AA
https://companiesmarketcap.com/airli...es-by-revenue/
#6
Join Date: Jun 2019
Location: NYC/DC
Programs: AA,SPG, Delta, Amtrak, JB
Posts: 911
It's a zero sum game for the airlines...it will just come back in the fares so some will win and everyone will lose.
Not saying I disagree with it, but it will just work it's way in as an input cost to building the fare structure, just like a rise in the price of fuel or wages.
Not saying I disagree with it, but it will just work it's way in as an input cost to building the fare structure, just like a rise in the price of fuel or wages.
#7
Join Date: Nov 2003
Location: YYZ
Posts: 1,675
How is this about to come back in fares? Whatever fare is charged, airlines will have to refund if the situations identified by this DOT policy occurs. Further, quite a bit of travel is price sensitive. I see no possible reason why this policy should result in price increases.
#8
Join Date: Oct 2022
Location: Ottawa, Canada + Edinburgh, Scotland
Programs: AC SE, Star Alliance Gold
Posts: 834
The problem is: why are they failing their shareholders by not already setting prices at that level? They are in effect donating shareholders’ money to the people buying those tickets.
#9
Join Date: Jun 2019
Location: NYC/DC
Programs: AA,SPG, Delta, Amtrak, JB
Posts: 911
Contingency for what? The airlines are not being asked to refund more than what was originally charged. Simple, but rather incorrect reasoning, I would agree.
#10
Join Date: Sep 2015
Posts: 1,204
Further, quite a bit of travel is price sensitive. I see no possible reason why this policy should result in price increases.