Todos
← Back to Squawk list
EU court: Airlines must not charge cancellation fees
The European Court of Justice (EJC) has ruled that airlines cannot levy additional charges if a consumer cancels a flight. German judges had asked the court to rule on airberlin’s refund policy and disclosure of additional taxes. (atwonline.com) Más...Sort type: [Top] [Newest]
Wow this is awesome even though there are not many AMERICAN airliners that charge them
Please read the article more closely! It is not about the airline needing to refund every ticket fully. It is about that Air Berlin charged a cancellation fee for a cancellation, no matter if refundable ticket or not! This is not correct.
Also, what many people don't know, even if you cancel a non-refundable flight, by European law the airline has to refund all taxes and fees, only thing they don't need to refund is the flight fare. That is why the ticket price has to be split up on the website for the customer.
With todays ticket prices, if you buy a cheap fare 90% of the price can be the taxes and charges. So in case of cancellation you have the right to ask back for a big part of the paid amount, as the airline will not have to pay for that themselves. For example, I have a flight booked from Vienna to Hong Kong for 515,90 Euro. The stated fare is 55 Euro. So in case I cancel the flight, the airline would have to give me back 460,90 Euro and can only keep the 55 as compensation for me not flying.
Also, what many people don't know, even if you cancel a non-refundable flight, by European law the airline has to refund all taxes and fees, only thing they don't need to refund is the flight fare. That is why the ticket price has to be split up on the website for the customer.
With todays ticket prices, if you buy a cheap fare 90% of the price can be the taxes and charges. So in case of cancellation you have the right to ask back for a big part of the paid amount, as the airline will not have to pay for that themselves. For example, I have a flight booked from Vienna to Hong Kong for 515,90 Euro. The stated fare is 55 Euro. So in case I cancel the flight, the airline would have to give me back 460,90 Euro and can only keep the 55 as compensation for me not flying.
>> For example, I have a flight booked from Vienna to Hong Kong for 515,90 Euro. The stated fare is 55 Euro. So in case I cancel the flight, the airline would have to give me back 460,90 Euro and can only keep the 55 as compensation for me not flying.
I'm sorry to disappoint you. Lufthansa has long been hiding the fuel "surcharge" (because fuel is currently more expensive than ever (this was sarcasm, in case it didn't become clear)) in the "Taxes and Fees" section. And a couple of years ago it realized that it did not have to refund the fuel surcharge hidden in there.
If there is one piece of legislation that I am really hoping for, it would be that "fuel surcharge" is to be abolished. The cost of fuel should be included in the fare. If the cost of fuel changes, just change the fare.
JCS.
I'm sorry to disappoint you. Lufthansa has long been hiding the fuel "surcharge" (because fuel is currently more expensive than ever (this was sarcasm, in case it didn't become clear)) in the "Taxes and Fees" section. And a couple of years ago it realized that it did not have to refund the fuel surcharge hidden in there.
If there is one piece of legislation that I am really hoping for, it would be that "fuel surcharge" is to be abolished. The cost of fuel should be included in the fare. If the cost of fuel changes, just change the fare.
JCS.
>> Please read the article more closely! It is not about the airline needing to refund every ticket fully. It is about that Air Berlin charged a cancellation fee for a cancellation, no matter if refundable ticket or not! This is not correct.
Spot on: Let's say, Air Berlin sold a ticket for 500€ and stated that in the case of cancellation 350€ are refundable (150€ cancellation fee).
Then, when you actually did cancel, they said that in order to refund te 350€, you would have to pay a 25€ processing fee, which was hidden somewhere in the T&Cs. It's not really a surprise (in Germany/Europe at least) that this would be challenged by the the consumer protection agencies and that the courts would follow suit.
Had Air Berlin simply charged a 175€ cancellation fee, nobody would have batted an eye. Air Berlin didn't want to do this because they wanted to look better than their competition.
JCS.
Spot on: Let's say, Air Berlin sold a ticket for 500€ and stated that in the case of cancellation 350€ are refundable (150€ cancellation fee).
Then, when you actually did cancel, they said that in order to refund te 350€, you would have to pay a 25€ processing fee, which was hidden somewhere in the T&Cs. It's not really a surprise (in Germany/Europe at least) that this would be challenged by the the consumer protection agencies and that the courts would follow suit.
Had Air Berlin simply charged a 175€ cancellation fee, nobody would have batted an eye. Air Berlin didn't want to do this because they wanted to look better than their competition.
JCS.
Wow! Something positive coming from the Eurocrats? Whatever next?
Great now they are getting into an area which can cost them more money due to handling no shows or people canceling there tickets.
And they wonder why airlines over book.
And they wonder why airlines over book.
I'm torn on this.
I think the airlines should be compensated for the costs associated with cancellations.
On the other hand, their customers pay for the tickets in full before they fly, usually weeks or even months in advance. That's millions of dollars (or Euros in this case) that they put in the bank and earn interest on, or can otherwise invest.
I think this will ratchet up the price wars as travelers can take advantage of last-minute deals and rebook on a different airline.
I think the airlines should be compensated for the costs associated with cancellations.
On the other hand, their customers pay for the tickets in full before they fly, usually weeks or even months in advance. That's millions of dollars (or Euros in this case) that they put in the bank and earn interest on, or can otherwise invest.
I think this will ratchet up the price wars as travelers can take advantage of last-minute deals and rebook on a different airline.
I think you are correct. A lot of money is prepaid for travel. The non-refundable tickets should take care of any booking expenses ( if any, with on line booking) As for last minute cancellations on a full fare ticket, well that's the chance the airlines take in offering the same service at sometimes 3 times the price.
I booked on Travelocity five months ahead of trip on United. Who holds that money? United or Travelocity?
United. The flight is on their ticket stock.
United