Should airline vouchers for cancelled flights be mandatory or irresistible?

paddy19

The government is supporting the imposition of mandatory vouchers on airline passengers. (see letter)

Lots of good ideas in the letter by why make it mandatory?

These mandatory vouchers would lock up passenger's money for 12 to 18 months.

Why not have an irresistible voucher (like Aer Lingus voucher but better):

+20% bonus.
No expiry date.
Cashable after 12 months.
No fee name change.
Guaranteed by EU.

7 day automatic cash refund for passengers who need the money now.

Member States (BE, BG, CY, CZ, EL, FR, IE, LV, MT, NL, PL, PT) ’ joint statement on airline vouchers

The COVID-19 pandemic has had an unprecedented impact on international transport, including air travel. An immense number of flights have been cancelled. Air carriers are no longer generating passenger business, yet they continue to incur high running costs.


Because of this, Regulation EC (No) 261/2004 and its obligation to reimburse cancelled tickets in cash, if the passenger so decides, places airlines in a difficult situation where they are facing a serious cash flow challenge. When the wording of the regulation was conceived, the current global crisis and its impact on air travel could not have been foreseen. The goal shared by the European Union and its Member States must now be to preserve the structure of the European air traffic market beyond the current crisis, while considering the interests and necessary protection of passengers.


We, the undersigned, therefore:
• Call upon the European Commission to propose, as matter of urgency, a temporary amendment of Regulation 261/2004, possibly preceded by other initiatives such as further Interpretative Guidelines, which allow airlines to choose the means by which passengers are reimbursed. This has to be done similarly across the European Union according to a common set of criteria. Such a temporary rule would be a solution for current cash flow constraints of airlines while preserving the competitiveness of European aviation, and maintaining harmonized criteria of application on a European scale so as to allow a common and adequate level of consumer protection;


• Call upon all stakeholders, including the aviation sector and consumer organizations, to join their efforts in order to reach a constructive and common solution for the European aviation market in a timely way. That solution will not only protect airlines and consumers in these difficult times but it will also stimulate market recovery through flexibility of travel and enhancement of consumer trust in the long-term.
We believe that regulating the temporary issuance of vouchers is possible and acceptable for consumers, if some key principles are taken into account: transparent information to the passenger, non-discrimination, a common length of voucher validity, maximum flexibility of use and a clear right of reimbursement immediately at the end of validity in the event of non-use of vouchers.

Moreover, as consumers are offered vouchers with a long-term validity, it is crucial to discuss ways to protect voucher owners against the risk of bankruptcy of the airlines that issued those vouchers. We are ready to explore this on a European level and call upon the Commission to take this aspect into account. The corresponding work should however not block action on the demand from airlines, which is becoming more urgent every day.

podge018

can they back date this ****e? I booked flights under the current directive, not an amended one.

paddy19

Mandatory voucher.

podge018 wrote: »

can they back date this ****e? I booked flights under the current directive, not an amended one.

Unfortunately they won't need to back date,
they simply change the Irish law and allow consumer debt to be repaid with a voucher.

You then have a conflict between Irish law and EU261.

Expensive lawyers fulminate, time passes you don't get your money.

If you want your money you need to move today.
www.Flightrights.ie is free and fast.


Guide to your 4 options here:

https://www.boards.ie/vbulletin/showthread.php?t=2058073208&page=2

ted1

Can we put a limit on the amount of threads an individual starts on the same subject?

Bikerman2019

ted1 wrote: »

Can we put a limit on the amount of threads an individual starts on the same subject?

i agree. Extreme times need extreme measures. Maybe to satisfy the OP, all vouchers could be given a 30% premium, but how do you think that would be paid for?


Just stick 30% on the fare price. I would be more worried about the survival of the airlines and associated protection of the jobs. Country is fecked as it is with all these Covid payments. It doesnt need thousands more on the jobless register in the long term.



Seems to be a campaign they are running for outrage.

paddy19

Mandatory voucher.

Bikerman2019 wrote: »

i agree. Extreme times need extreme measures. Maybe to satisfy the OP, all vouchers could be given a 30% premium, but how do you think that would be paid for?

Aer Lingus had 10%, I proposed 20% you decided to up to 30%.

The voucher will most likely to be used to buy a fare.
Therefore it does not cost the airline anything like 20%.

Airlines discount fares all the time.
Michael O'Leary is saying he will have the biggest sale ever.

My central point is lots of passengers, myself included,
love flying and want to see airlines and airline workers prosper,
but trying to rip-off customer by saying your money
vanishes if you don't book within a year is robbery plain and simple.

Give customers a great deal and customers who can afford it will buy it.
But allow customers who need the cash the option to get their money back without jumping through hoops.

They shouldn't be forced to wait 12 months to get their own money back.

ted1

paddy19 wrote: »

Aer Lingus had 10%, I proposed 20% you decided to up to 30%.

The voucher will most likely to be used to buy a fare.
Therefore it does not cost the airline anything like 20%..

Aer Lingus are simply going to have dearer fates next year to make up the difference between it and the voucher.
If Ryanair dud it they too would inflate their fares.

paddy19

Mandatory voucher.

ted1 wrote: »

Aer Lingus are simply going to have dearer fates next year to make up the difference between it and the voucher.
If Ryanair dud it they too would inflate their fares.

Michael O'Leary has promised the biggest sale ever to get people back flying when Covid has passed.

Airlines like any other business will charge as much they can get away with.

If an airline can sell a seat for €100, why would it sell it for €50.

Different airline sectors have different models but they are all trying to maximise profits.

I'm not sure future fares will have much to do with the cost of vouchers.

Great article here on the complexity of setting air fares.

https://edition.cnn.com/travel/article/airline-pricing-secrets/index.html

Bikerman2019

paddy19 wrote: »

Aer Lingus had 10%, I proposed 20% you decided to up to 30%.

The voucher will most likely to be used to buy a fare.
Therefore it does not cost the airline anything like 20%.

Airlines discount fares all the time.
Michael O'Leary is saying he will have the biggest sale ever.

My central point is lots of passengers, myself included,
love flying and want to see airlines and airline workers prosper,
but trying to rip-off customer by saying your money
vanishes if you don't book within a year is robbery plain and simple.

Give customers a great deal and customers who can afford it will buy it.
But allow customers who need the cash the option to get their money back without jumping through hoops.

They shouldn't be forced to wait 12 months to get their own money back.

Doesnt matter if it is 5 percent or 50 percent, it will just go onto the fares you pay. That is just splitting hairs.

ted1 wrote: »

Aer Lingus are simply going to have dearer fates next year to make up the difference between it and the voucher.
If Ryanair dud it they too would inflate their fares.

Yep, kinda obvious to me, but not to the OP