The current flight chaos, which is particularly affecting the Federal Republic of Germany, is now causing Consumer Protection Minister Steffi Lemke (Greens) to question the airlines' practice of paying in advance.
The fact that at the beginning of the corona pandemic most airlines, including the German companies Lufthansa, Eurowings and Condor, disregarded the legal obligation to reimburse within seven days also plays a role in the current considerations. Not only have automatic functions been deactivated, but the repayments have been delayed with pure intent. Condor even got a lawsuit from the consumer advice center because it was initially claimed that you could only get vouchers. Lufthansa, Eurowings and many other airlines have also tried to fob off with "compulsory vouchers". Sometimes these were simply sent by email instead of refunding the money.
A few years ago, consumer protection had complained about the advance payment practice of many airlines, but they lost in court. The industry was able to convince the judges that they could offer a much lower price in return. Nevertheless, the consumer advice center continues to take the legal view that the sales practice for flight tickets contradicts the basic principle of goods for money. In addition, there is no insolvency protection, so that the passengers also bear the risk of an airline bankruptcy.
So far, the German federal government has stayed out of this discussion, but the performance of the "national champion", as a former transport minister called Lufthansa, is likely to have been the last straw. The problem is that an enormous number of flights are currently being canceled or massively delayed. Many providers, including Lufthansa, are pulling out all the stops to be able to stall passengers for as long as possible, both when it comes to paying out the compensation and refunding the ticket money. Some give up after a letter that sometimes rejects everything, even though there is clearly a claim.
The "Welt am Sonntag" now reports that Minister Lemke is appealing to the airlines to "proactively fulfill their legal obligation to reimburse within seven days". Otherwise it could be uncomfortable for the carriers, because "otherwise you will have to review the advance payment practice in its current form". Passengers would currently “bear a high risk if there are flight cancellations or airline bankruptcies”.
It remains to be seen whether the German Ministry of Consumer Protection will stop at mere threats in public or whether it will regulate the sales practices of airlines. This could have a significant impact on carriers, because as a rule, the money paid six months before departure, for example, has long since been spent.
Looking back: It was a long time ago, but before online bookings, many airlines offered the option of reserving the ticket over the phone and then picking it up at the airport on the day of departure and paying in cash. Apart from special savings tariffs, you could also return tickets you paid for in a travel or city office and get the money back in cash straight away. In the past, rebookings were also possible at least once free of charge during the period of validity – usually one year. With the advent of online bookings, sales through travel and city agencies, over the phone and directly at airport counters have declined sharply. In particular, the concepts of the low-cost airlines, which were gradually copied by traditional airlines, prevailed today's advance payment practice.
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