The
national airline will have to pay 126.5 million dollars (122.5 million euros)
in mandatory refunds — an amount that is already reflected in their accounts —
and a fine of 1.1 million dollars (one million euros).
According
to a report by ECO, the DOT “announced historic enforcement actions against six
airlines, which collectively paid more than $500 million to people who received
a refund due to a cancelled or significantly altered flight,” reads a statement.
These fines "are part of the DOT's ongoing work to ensure that Americans
receive the refunds they are owed."
“Since
the beginning of the pandemic, the DOT has received numerous complaints from
air travellers about the failure of airlines to provide timely refunds after
having their flights cancelled or significantly changed,” the document
continues. Frontier Airlines (USA), Air India, TAP Portugal, Aeromexico, El Al(Israel) and Avianca (Colombia) were the sanctioned companies.
“Fully
committed”
TAP
guarantees that it is “fully committed to complying” with the DOT rules, which
it takes “very seriously”. The carrier explains to ECO that it has made “good
faith efforts to process customer refunds as promptly as possible during the
extraordinarily challenging circumstances” caused by the pandemic. “While our
mostly manual refunds process was up to the task before the pandemic, our 90%
reduced manpower, combined with an avalanche of refund requests due to Covid,
meant we were not able to timely deal with the massive and unprecedented
requests, which were often complicated with reservations and multiple payment
systems”, says an official TAP source.
“To
provide assistance to our customers, we hired additional staff as soon as we
were financially able to do so and invested in implementing automated solutions
to facilitate reimbursements”.
Under
US law, “Airlines and travel agents have a legal obligation to reimburse
consumers if the airline cancels or significantly changes a flight to, from and
within the United States and if the passenger does not wish to accept the
alternative offered. It is illegal for an airline to refuse refunds and instead
provide vouchers to these consumers.”
“When
a flight is cancelled, passengers seeking a refund must be paid immediately.
Whenever that doesn't happen, we will act to hold airlines accountable on
behalf of American travellers and return the money to passengers," said US
Transportation Secretary Pete Buttigieg, quoted in a statement.