Don't fall for voucher offer -- Flyertalk

[reader]

From Flyertalk

Wait Before You Take a Voucher for Your Canceled Flight

Was your flight canceled by the coronavirus outbreak? Airlines have made it easy to get a voucher for your canceled flight. But, warn the very frequent fliers on FlyerTalk, by doing that, you could be disqualifying yourself from a cash refund. 

“After reading several airline coronavirus policies,” one FlyerTalker pointed out earlier this week, “I noticed that there are no mentions of refunds for flights or routes canceled by the airline. They only mention that you will get a credit that can be used later if the customer decides to cancel. “Don’t fall for it, the airlines are trying to get customers to cancel first, which would disqualify from a refund.”

While a voucher is an easy way to settle over a canceled flight–some airlines will even do it automatically–it restricts your options. Airlines like them because they can settle with you without you or them having to hop on the phone. But, if you prefer cash you should know that you don’t have to take a voucher instead.

The Law Is on Your Side

Laws in the United States and the European Union outline when customers are entitled to cash refunds. In the US, the Department of Transportation (DOT) explains:

“If your flight is canceled and you choose to cancel your trip as a result, you are entitled to a refund for the unused transportation – even for non-refundable tickets. You are also entitled to a refund for any bag fee that you paid, and any extras you may have purchased, such as a seat assignment.”

In the European Union, interpretative guidelines for EU261 has been released since the COVID-19 crisis surfaced. The guidelines state:

“It appears that various carriers are offering vouchers to passengers, who do not want to (or are not authorized to) travel anymore as a result of the outbreak of Covid-19. Passengers can use these vouchers for another trip with the same carrier within a timeframe established by the carrier.

This situation has to be distinguished from the situation where the carrier cancels the journey and offers only a voucher instead of the choice between reimbursement and rerouting. If the carrier proposes a voucher, this offer cannot affect the passenger’s right to opt for reimbursement instead.”

The full interpretation can be read here. The same passenger rights exist in Canada as well, and it is suggested that customers check the local laws to determine if they are entitled to a refund for airlines operating in countries other than the US and EU.

How to Get Cash for Your Canceled Flight

To avoid getting stuck with a voucher, the very frequent fliers in the FlyerTalk forum advise that you wait it out. One said,

“Don’t cancel, let the airline cancel the flights, then you can demand a refund. With the current coronavirus crisis, most flights will be canceled or incur significant schedule changes that qualify for a full refund.”

Another explained how the waiting game has worked out for them:

“This is exactly what I am doing, waiting out the airlines. When this began I had 8 non-refundable tickets across American Airlines, United Airlines, Swiss International, Turkish Airlines, KLM, and EasyJet. At the beginning, none of the airlines would give a refund, only vouchers. Now a couple of weeks later I have recovered about $3000 as airlines cancel flights and adjust their schedules.”

What If My Flight Isn’t Canceled?

The one con of waiting out the airlines is if the carrier does not end up canceling the flight. At this point, if you do not wish to fly, your options are to rebook travel for a later date or take the voucher. In some cases, your credit card company may be able to help you out and reimburse your flight, but it is not guaranteed.

https://www.flyertalk.com/articles/dont-take-a-voucher-for-your-canceled-flight.html

[vinapu]

For flights to Thailand I'd never contemplate asking for refund as it's sure thing sooner or later ( read 'even sooner" ) I be itching to fly anyways.

But thank you for informing us about the options  

[traveller123]

9 hours ago, vinapu said:

For flights to Thailand I'd never contemplate asking for refund as it's sure thing sooner or later ( read 'even sooner" ) I be itching to fly anyways.

But thank you for informing us about the options  

I had flights booked for my (Thai) partner and myself Bangkok/Manchester departing 28th May.

If I read and understood the Emirates website and ticket conditions correctly my choices were to cancel and obtain a refund with a penalty of 5000 baht per ticket or opt to receive a voucher with no financial penalty. However the voucher is only valid for one year from the date of issue.

We were visiting and staying with my sister and her husband who are both 70+ with underlying health issues, I sincerely hope I'm wrong but I think the Coronavirus situation may not be resolved within a year and I took the certainty of requesting a refund with the financial penalty

 

[Guest]

3 hours ago, traveller123 said:

I had flights booked for my (Thai) partner and myself Bangkok/Manchester departing 28th May.

If I read and understood the Emirates website and ticket conditions correctly my choices were to cancel and obtain a refund with a penalty of 5000 baht per ticket or opt to receive a voucher with no financial penalty. However the voucher is only valid for one year from the date of issue.

We were visiting and staying with my sister and her husband who are both 70+ with underlying health issues, I sincerely hope I'm wrong but I think the Coronavirus situation may not be resolved within a year and I took the certainty of requesting a refund with the financial penalty

 

In your circumstances, I think you are correct to avoid the 1-year voucher option.   Whilst I expect the option of travelling to Thailand will be there in comfortably under a year, individuals at higher risk might want to wait until the disease is virtually eliminated or they have immunity (via a vaccine or having had COVID-19).

 

Presumably, your other option would be to wait until they cancel the flight, then get a full refund ?        

If they don't, take the refund with 5000 baht penalty a few days before? 

 

Obviously some airlines are at risk of failing here, so that might need to be factored in, along with any protection from your credit card company.  

My first preference with airlines is to always pay with a credit card, since such businesses have a habit of failing.

 

 

 

[reader]

U.S. Department of Transportation Issues Enforcement Notice Clarifying Air Carrier Refund Requirements, Given the Impact of COVID-19

Friday, April 3, 2020

WASHINGTON – The U.S. Department of Transportation today issued an Enforcement Notice clarifying, in the context of the 2019 Novel Coronavirus (COVID-19) public health emergency, that U.S. and foreign airlines remain obligated to provide a prompt refund to passengers for flights to, within, or from the United States when the carrier cancels the passenger’s scheduled flight or makes a significant schedule change and the passenger chooses not to accept the alternative offered by the carrier.  The obligation of airlines to provide refunds, including the ticket price and any optional fee charged for services a passenger is unable to use, does not cease when the flight disruptions are outside of the carrier’s control (e.g., a result of government restrictions).

The Department is receiving an increasing number of complaints and inquiries from ticketed passengers, including many with non-refundable tickets, who describe having been denied refunds for flights that were canceled or significantly delayed.  In many of these cases, the passengers stated that the carrier informed them that they would receive vouchers or credits for future travel. Because the COVID-19 public health emergency has had an unprecedented impact on air travel, DOT’s Aviation Enforcement Office will exercise its enforcement discretion and provide carriers with an opportunity to become compliant before taking further action.  However, the Aviation Enforcement Office will monitor airlines’ refund policies and practices and take enforcement action as necessary.

https://www.transportation.gov/briefing-room/us-department-transportation-issues-enforcement-notice-clarifying-air-carrier-refund

[vinapu]

that's nice but only on condition airlines in question will not go under

[Guest]

I have no idea about the stats, but my observations over several decades show that businesses in certain sectors have a tendency to fail.  

Particularly including furniture retail, travel agencies and airlines.    

I usually pay for things like flights and furniture with a credit card, as the credit card company will provide a refund if the company goes bust.  

Incidentally, when the credit card companies lose confidence in an airline, they stop forwarding money to airlines, as we saw with Flybe in the UK.  

Normally, as you can imagine, the airlines get the money some time in advance of the customer getting on the plane.   That provides a nice cash float for growing the business.

 

I've made an exception and used a debit card to book with Ryan Air, as they charged some obscene fee for the use of a credit card and they have a relatively solid balance sheet.    However, I've avoided them for a couple of years, since the last time I attempted to book, they wanted £32 for me to take a cabin bag on board. The booking was not completed.

Airbus are apparently going to cut production of planes shortly, as are Boeing who have additional well known problems.   Despite full order books, airlines are trying to defer orders.  

 

As for furniture, I quite like the Ikea model.  I pay for the furniture and walk out of the door with it on the trolley.  No chance of the company going bust between my payment and the furniture being delivered, which with some companies is up to 3 months later !