WASHINGTON, July 30 (Reuters) - U.S. Transportation
Secretary Pete Buttigieg on Tuesday warned the 10 largest U.S.
airlines they must comply with new passenger refund obligations
passed by Congress in May, rejecting an industry request for
more time.
Buttigieg said in letters to airline CEOs that they must
follow the new refund provisions taking a hard line with the
industry.
"The law did not provide for extensions or delays.
Accordingly, we will be taking all appropriate steps to
responsibly enforce these provisions using our investigative and
enforcement powers," Buttigieg said.
Airlines for America, an industry trade group representing
Delta Air Lines ( DAL ), United Airlines, American
Airlines ( AAL ), Southwest Airlines ( LUV ) and others, on July
3 had sought additional time on a number of provisions.
The group said "the new technology solutions necessary to
comply with these requirements will necessitate thorough
development, testing and refinement before successful
deployment."
The group did not immediately comment on Buttigieg's letter.
The DOT announcement came a day after the 5th Circuit U.S.
Court of Appeals blocked new DOT airline fee disclosure rules
from taking effect in October.
A4A warned that giving automatic refunds if consumers do not
respond to an offer of alternative transportation and the flight
departs without that passenger could "negatively impact many
consumers" and leave them without a new flight.
"Airlines must clearly and proactively inform passengers of
their right to a refund whenever their flight is canceled or
significantly changed," Buttigieg said. "Cash refunds - not
vouchers or credits - must be automatic for passengers when they
are owed."
The issue has gained new attention after a software update
by global cybersecurity firm CrowdStrike triggered system
problems for Microsoft customers including airlines on July 19.
Delta suffered widespread woes for six days, resulting in
more than 6,000 flight cancellations, impacting more than
500,000 passengers and prompting DOT to open an investigation.
Congress in May required airlines to take a number of
immediate steps including make credits good for five years.
A4A said most airlines said "they do not have the
technological means to issue and support vouchers and flight
credits with a minimum travel validity period of five years" and
many airlines "estimate that 12 months will be needed to achieve
the required solution."
Buttigieg rejected that: "Any airline that has provided
vouchers or credits with a shorter validity period must take
immediate steps to remedy this noncompliance," he wrote.