The Business Travel Association (BTA) is urging airlines to
adhere to IATA regulations and offer cash refunds for corporate travellers when
their flight is cancelled due to the coronavirus.
While most UK airline have continued offering refunds, the
BTA said it has noted international carriers refusing to do so, even when flights
have been cancelled as a result of government advice or action. The association
said this is in contravention to IATA’s ruling 824r on refunds.
Many airlines are instead offering vouchers that can be used
for future flights in place of cash refunds, some of which are only valid for up
to a year. The BTA said this prevents its TMC members from refunding their
corporate traveller customers and the companies they work for from recovering
the money they have paid.
CEO Clive Wratten commented: “We understand that these are
very challenging times for the airline industry, but those difficulties are
also being faced by other parts of the business travel supply chain and,
indeed, across the wider business community.
“The business travel industry will play a vital role in the
UK’s economic recovery but, for that to happen, we need to work together now to
reduce the impact of Covid-19 for British businesses and put them in a stronger
position to resume business travel as soon as this crisis situation ends.”
The European Commission has released official advice that while the option of a refund must still be offered for cancelled flights, airlines do not have to pay additional compensation under EU261/2004 rules because the coronavirus can be considered an “extraordinary circumstance” outside of their control.