Originally Posted by
headingwest
They have not said that airlines can refuse to give cash refunds.
Precisely! No matter what the Commission's statement on Wednesday will include, the Commission has no legal authority to change anything about air passenger rights on their own and neither do individual member states. They know that, so what they intend to do is find a voucher solution that is good enough for customers to take it despite having the option for reimbursement. No need to panic! Surely you'll understand that people who feel confusion about what rights they have and how to enforce them are more likely to be ambushed, so it is not in anybody's interested to spread doubts.
EC261/2004 – the air passenger rights regulation – is an EU regulation, meaning it's a law that is directly valid in all EU member states and cannot be contradicted by national laws. It can only be changed or replaced on an EU level, involving all three major institutions (European Commission, Parliament and Council). If the Commission wanted to change this law, this would have to follow the normal process, meaning months or years of deliberation between the European Parliament (which already signaled that it would be against any attempts to water down current consumer protection levels) and the Council (representing member states). That means, unless they all agree to change the law, you have all rights defined in the regulation, no matter what your government or the Commission or anyone else says or does. If your airline doesn't honor their legal obligations, you have access to all normal redress mechanisms such as turning to the enforcement body defined in Article 16 of the regulation or, of course, going to court.