BA and Ryanair: Customer Refunds

Lord Balfe Excerpts

Tuesday 15th June 2021 Lords Chamber

[Baroness Vere of Norbiton (Con)]

The Government are taking a keen interest in this issue, but it should be noted that refund issues between airlines and travel agents are a contractual matter between those two businesses. The Civil Aviation Authority does not have a role in enforcing such contracts. On the action we are taking on behalf of consumers, the CAA has reviewed airlines’ compliance on refunds. The authority did this last summer and it has since worked collaboratively with airlines to improve their performance. I am pleased to say that most airlines are now paying refunds within seven days.

[Lord Balfe (Con)]

My Lords, I declare an interest as someone who is owed money by both British Airways and Ryanair. I ask the Minister whether this system could be changed because there is a legal liability which is clearly not being followed. Indeed, these companies are using every trick in the book not to pay customers back. Will the Minister at least agree that this will be borne in mind when they queue up for loans and money from the Government?

[Baroness Vere of Norbiton (Con)]

I cannot comment on my noble friend’s circumstances, but the regulations already set out that if a consumer’s flight or holiday has been cancelled by an operator, that customer is entitled to a refund within a reasonable timescale. We are also asking businesses to make sure that they interact with their customers on a fair and responsible basis because that is important for the future of the travel industry. I hope that my noble friend will get his refunds, if they are due, as soon as possible.