US Senators Propose the “Cash Refunds for Coronavirus Cancellations Act of 2020”
Taylor Rains May 14, 2020
Since the outbreak of the coronavirus, travel has come to a near screeching halt. Because of this, airlines are canceling flights, and customers are proactively canceling their reservations. However, in either case, most carriers are refusing to offer cash refunds to travelers and are instead only issuing vouchers or travel credits. This has led to outrage on social media and over 25,000 complaints to the DOT, which has caught the attention of a few senators who do not agree with the airline’s decisions. So, they are taking matters into their own hands.
Cash Refunds for Coronavirus Cancellations Act of 2020
Democratic Senator Ed Markey of Massachusettes has proposed the “Cash Refunds for Coronavirus Cancellations Act of 2020” that will require airlines to provide cash refunds for any canceled ticket made by the airline or proactively by the customer. The new legislation is also being backed by Sen. Elizabeth Warren (D-Mass), Sen. Richard Blumenthal (D-Conn.), Sen. Chris Murphy (D-Conn.), and Sen. Kamala Harris (D-Calif.).
Markey explained his reasoning in a statement, “At a time when families are struggling to pay for food, for housing, for prescriptions, it’s absolutely unconscionable that the airlines won’t return this money to consumers, especially after they received a multi-billion bailout from the Congress using American taxpayers’ dollars.”
Although the senator has repeatedly called on airlines to issue cash refunds, most will not budge, so he is pushing for this new legislation to be included in the next government stimulus package. He said, “We cannot continue to bail out big business while only giving scraps to individuals and families in need.” Markey estimates $10 billion of customer’s money is being held as future travel credits and that the act is “profiting on the back of American consumers.”
What Would the Bill Require?
The senator has outlined the terms of the new act:
- Major airlines and third-party ticket sellers will be required to offer full cash refunds for any flight canceled either by the airline or by the customer
- Major airlines and third-party ticket sellers will be allowed to offer vouchers or travel credits instead of a cash refund as long as they do not have an expiration date, and the passenger’s right to a cash refund is clearly outlined in the offer
- Allow major airlines to pay for the cash refunds using government aid, except for the money gained from the CARES Act which is designated for employee wages and benefits
- The right to a cash refund is retroactive to March 1, meaning any passenger who has accepted a voucher for a flight on or after that date but has not used it, can request a cash refund now
- The right to cash refunds will be available for six months after the end of nationwide coronavirus emergency declarations
In response to the proposed bill, Airlines for America has said they worry that the struggling carriers would not survive the crisis should they be forced to issue cash refunds.
What do you think about the proposed bill? Let us know in the comments!
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@flyerCO: Thanks, I was hoping they'd reverse course in light of the DOT guideline, but seeing the response they gave in the Air Canada Refunds Master Thread, I'm thinking DOT complaint and chargeback might be only choice.
@Drummer, Yes some really dumb posts here. Thanks for setting an example.
OZFLYER86, Why do they keep getting re-elected? You don’t have to be intelligent to be elected to office here in the US, you just have to be smarter than the idiots who elect you.
@strickerj - AC is required to refund for flights they cancel/don't operate. If they give you hassle, a chargeback is appropriate.
RedElmo, you answer does not make much sense, does it? Passengers would not receive more than they paid, so what benefit would it have been for you to book and pay for more flights, only to have them cancelled and then wait to get back your own money that you paid in? I do not agree that airlines should be required to pay cash refunds for flights that are not cancelled by them, but by the choice of the passenger. But if the airline cancels, then yes, the consumer has paid for a service in advance that they are not receiving due to the airline's actions (except in the case of international flights where the airline has been blocked by the foreign country from entering their country).. And regarding the comment from "arcticflier", not all travel booked is for "vacations." Sick relatives, parent/child emergencies, personal healthcare (have you been to Mayo?), job searches, and many other reasons exist for travel.