FlyerTalk Forums - View Single Post - Covid19: Swiss refunds after cancellation
Old May 30, 2020, 12:37 pm
  #456  
LoungeLizzard
 
Join Date: Mar 2005
Location: ZRH, Switzerland
Programs: M&M, Fan of MO, Shangri-La.
Posts: 687
Originally Posted by Adam Smith
How would you suggest consumers enfore the rights that LX is denying them then?
Imagine for a moment that you are Mr. Spohr.

Surely you will want to treat your consumers fairly, and you would therefore likely not want to give preference to the "chargeback brigade".
- How likely will you have to declare bankruptcy on the same day that you decide to pay a refund to everyone who asks immediately? (I think close to 100%)
- If your former company is then run by an administrator, how likely is it then that the consumers get back their money quickly?
Example 1: Swissair. Went bankrupt 2001 and is still under liquidation today. If I remember correctly, it took > 5 years for the first partial payment to be made. Most was lost. (most tickets luckily not)
Example 2: Thai Airways: They are bankrupt, and it seems by no means clear what happens with already paid tickets, especially regarding refunds.
Example 3: SQ, which just got $13 billion from the state, does not give dates or a timeline for refunds. They say that they'll process them in sequence of first flight date but not when.

To answer your question: I think that customer rights for refund are not enforceable at the moment because that would lead to the company's immediate bankruptcy which bites the enforcement in the tail.
Hopefully the situation improves as soon as the deal between LH and Germany is finally signed off by all parties, which will also allow LX to draw from the credit from the Swiss state, and I strongly hope that LH will not go via bankruptcy. (there's politics in here as well... i.e. LH has to uphold their threat to go via bankruptcy if the deal which the EU is willing to accept (give up slots in MUC and FRA) is hurting them too much)

That "assumed reasoning" is what makes it tolerable for me, and I'm truly sorry that you are so mad at them. (honestly! I'm definitely not trying to be cynical at all!)

The only part which I fail to understand is why LX & LH are communicating so badly.
I agree 100% percent with you, capedreamer and warakorn that they are doing themselves a huge disfavour by burying their head in the sand or treating customers like complete idiots or 3 year old children and trample on the right of the consumers like a herd of buffalos.
That can be done a LOT better, and it does not even cost anything.
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