British Airways used a faulty complaints procedure that failed to offer passengers timely refunds for cancelled flights to and from the US during the Covid-19 pandemic, the US Department of Transportation has said.
BA slashed the number of customer service staff just as flights around the world were grounded, causing a spike in passengers seeking refunds.
The US Department of Transportation issued a $1.1 million fine for BA’s deceptive and unfair practices.
BA customer complaint lines after the fine was issued on Friday continued to be be answered by voicemails promising: “All our agents are busy. Please hold the line.”
The press office number also re-routed callers into a voicemail queue suggesting people email or leave a message.
Designed to fail
The complaints revolve around refunds during the the March-November 2020 period.
Customers who had flights cancelled were encouraged to use the online refund form.
Passengers who tried to call the customers services office were left on hold, and continually urged to claim online.
Grounded fliers were often unable to actually use the web form to submit refund requests.
The BA website appeared to offer refunds to customers, however it was often promoting vouchers for future flights instead.
Consumers would often be led into accepting vouchers, wrongly thinking it was the best option for them.
Deceptive and unfair
The US investigation called the tactics deceptive and unfair.
“BA’s failure to establish, for several months, a readily accessible method for consumers to request refunds for flights the carrier cancelled, or significantly changed" the DoT said, resulting in "delays in thousands of consumers receiving required refunds.
“The practice of stating that a consumer has the option of obtaining a refund, but then obfuscating the necessary steps to obtain a refund or only offering consumers vouchers for a flight the carrier canceled or significantly changed is deceptive.”
It added: "An airline’s practice of not having a readily accessible way for consumers to request refunds for flights it cancels or significantly changes, resulting in delays in consumers obtaining required refunds, is unfair as it causes substantial harm to consumers.”
How to claim a BA refund
BA still has an online form for refunds, with the phone line outlining their website as its preferred contact method.
Other methods such as Facebook or Twitter often drives customers back to the online form.
When contacted by The National about improving their systems, BA did not respond.
After the US fine, BA said it “acted lawfully at all times” during the pandemic and allowed customers whose flights were cancelled to either re-book on different dates or claim a refund.
The airline also said it had issued more than 5 million refunds since the pandemic began.
The UK's Competition and Markets Authority investigated BA and Ryanair over concerns they may have broken the law by failing to offer refunds for flights that customers could not legally take during lockdown.
The CMA ruled in 2021 that a lack of legal clarity made it uncertain that it would be able to secure refunds for customers who were prevented from flying by Covid restrictions.
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Liverpool 3
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Profile
Company: Libra Project
Based: Masdar City, ADGM, London and Delaware
Launch year: 2017
Size: A team of 12 with six employed full-time
Sector: Renewable energy
Funding: $500,000 in Series A funding from family and friends in 2018. A Series B round looking to raise $1.5m is now live.
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Director: Goran Hugo Olsson
Rating: 5/5
MATCH INFO
Europa League final
Who: Marseille v Atletico Madrid
Where: Parc OL, Lyon, France
When: Wednesday, 10.45pm kick off (UAE)
TV: BeIN Sports
How has net migration to UK changed?
The figure was broadly flat immediately before the Covid-19 pandemic, standing at 216,000 in the year to June 2018 and 224,000 in the year to June 2019.
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MATCH INFO
Uefa Champions League final:
Who: Real Madrid v Liverpool
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When: Saturday, May 26, 10.45pm (UAE)
TV: Match on BeIN Sports
Global state-owned investor ranking by size
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UAE
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UAE currency: the story behind the money in your pockets
The specs: 2018 Nissan 370Z Nismo
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Price, base / as tested: Dh182,178
Engine: 3.7-litre V6
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Date started: January 2017, app launched November 2017
Based: Dubai, UAE
Sector: Private/Retail/Leisure
Number of Employees: 18 employees, including full-time and flexible workers
Funding stage and size: Seed round completed Q4 2019 - $1m raised
Funders: Oman Technology Fund, 500 Startups, Vision Ventures, Seedstars, Mindshift Capital, Delta Partners Ventures, with support from the OQAL Angel Investor Network and UAE Business Angels
Profile
Name: Carzaty
Founders: Marwan Chaar and Hassan Jaffar
Launched: 2017
Employees: 22
Based: Dubai and Muscat
Sector: Automobile retail
Funding to date: $5.5 million
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UAE currency: the story behind the money in your pockets
