European travellers will get refunds for cancelled flights within 14 days, according to fresh proposals from the European Commission.
The move is partly aimed at avoiding a repeat of the chaos around reimbursing airline passengers during Covid.
The proposals, adopted by the Commission today, will clarify rules on reimbursement when flights, or multi-leg journeys using different kinds of transport, are booked via a travel agency.
Under the proposed legislation, package operators, most of whom are small and medium-sized enterprises (SMEs), will be entitled to a refund from service providers within 7 days, which in turn should allow them to refund customers within two weeks.
As part of a revamp of existing laws on passenger rights, the proposals aim to make travelling a smoother experience, ensuring travellers have access to direct support and real-time information on delays and cancellations. There will also be a stronger focus on passengers with disabilities.
In a statement, the Commission said the proposals would build on lessons learned during the Covid pandemic and the bankruptcy of the Thomas Cook travel company in 2019, which had a major impact both on travellers and on the travel market.
A proposed revision of the Regulation on Passenger Rights will involve stronger enforcement mechanisms for airlines which cancel or delay flights, while a new proposal on so-called multi-modal journeys will set out new rules to protect passengers using buses, trains and planes in one trip.
Under the proposed legislation, passengers should be given better information before and during trips, including minimum connection times between different transport services.
If the overall journey is purchased under one transport contract, passengers will be entitled to assistance from the carrier in the event of missed connections.
The proposals will have to be endorsed by member states.
Travellers with reduced mobility who switch from one form of transport to another will be assisted at connecting points by carriers and terminal operators if they travel under a single contract.
If the person needs to have a friend or relative travelling with them in order to comply with aviation safety requirements, the airline would be obliged to transport the accompanying person free of charge, and when practical, ensure the person is seated next to the traveller they are assisting.
Under a further revision of the 2015 Package Travel Directive, tour operators will not be able to demand a 25% down payment of the deal price, except in exceptional circumstances, such as if the tour operator has to pay the airline upfront.
Tour operators will also not be permitted to demand total payment earlier than 28 days before the start of the package.
The proposals aim to avoid the chaotic situation which occurred during the Covid pandemic, when airlines were accused of confusing and sharp practices over the use of vouchers if flights were cancelled. In many cases airlines themselves ran out of cash.
Passengers who are offered a voucher must be clearly told they can also insist on a refund, and must be told about the nature of the voucher before they are asked to accept it.
Travellers can also demand that vouchers be refunded if they are not used before the end of their validity period.
A report by the European Court of Auditors in 2021 found that during the pandemic air passengers were not informed fully about their rights, often lost money to which they were entitled or were told they had to accept vouchers instead of a refund.
The report found that the reimbursement of passengers was limited across the board, especially when it came to tour operators, and that vouchers and reimbursements were often not protected against airline insolvency.
