Seanad debates

Monday, 19 April 2021

Nithe i dtosach suíonna - Commencement Matters

Airline Vouchers

10:30 am

Photo of Mark WallMark Wall (Labour)
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I welcome the Minister for Justice, Deputy McEntee.

Photo of Jerry ButtimerJerry Buttimer (Fine Gael)
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The Minister is very welcome. I raise the issue of travel vouchers for customers of airlines. At the outset, I commend the Irish Travel Agents Association on its advocacy, work and representation on behalf of people. In the context of the next phase of the Covid-19 recovery plan, it is important that we have a national aviation restart plan and a comprehensive plan for the hospitality, retail, tourism and travel sectors.

A number of people have raised with me the issuing and honouring of vouchers by airlines. When vouchers were first issued for cancelled flights, if the person did not use the voucher by the expiry date, which is after one year, a refund would be issued. Airlines then issued vouchers for a period of five years so that they would not have to pay out on them. That was not an issue for most people because they knew they would use the voucher within that period. Customers who have accepted vouchers from airlines under EU Regulation 261/2004 can reject the voucher and receive cash at any point.

I ask for clarity and certainty to be given to the travelling public and also to travel agents who are receiving calls and emails from people. The issue relates to travel agents and members of the travelling public who have been dealing with airlines in terms of the honouring of vouchers when the 12 months are up. As many of us know, this time last year we thought we would not be in this position with travel curtailed. People are now looking to travel in May, June, July and August of this year and they cannot. I ask that certainty and clarity be given to members of the travelling public regarding EU law and its relationship to the people here in Ireland in terms of the five-year expiry date. Clarity should also be given to travel agents whose clients have been given a one-year extension. Could that be extended to five years? The customer, under EU Regulation 261/2004, retains the right to a cash refund.

I am calling on the airlines to be fair and honest with people in terms of the honouring of vouchers. I ask them to be flexible and work with the IATA and its customers regarding the matter. The website flightrights.ieis where people can find their entitlements and what can and cannot be done. I appeal to the airlines and the Government to ensure that the rights of the travelling public are upheld.I also make an appeal for the expiry dates for airline vouchers to be extended and for a flexible approach to be taken in this regard. I understand it is a very pressurised and difficult time for many in the travel industry, especially for the airlines. I hope the Minister's reply will show the policy being flexible on behalf of the travelling public.

Photo of Helen McEnteeHelen McEntee (Meath East, Fine Gael)
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The Minister of State, Deputy Naughton, gives her apologies that she cannot be here.

The Covid crisis has seen an unprecedented impact on international travel and, as a result, civil aviation globally is currently experiencing its most challenging crisis ever. Many analysts are predicting that it will take several years for the sector to return to 2019 levels.

The Minister of State, Deputy Naughton, has met all key aviation stakeholders and her officials continue to engage with airports and airlines. She remains concerned that the current uncertainty around international travel, as well as the less positive prospects for summer 2021 than all of us would have hoped for, are leaving Irish consumers exposed to financial loss as a result of complying with public health guidelines. The impact and strain of the current trading environment on airlines and their staff are fully acknowledged. The financial and commercial pressures that persist for so long as international travel is restricted are fully understood.

The Government has responded to the crisis impacting businesses, including airlines, through varied supports such as the wage subsidy scheme, grants, low-cost loans, the commercial rates waiver, which has been extended into 2021, and deferred tax liabilities. In addition to the economy-wide measures, on 10 November 2020, the Government announced an €80 million funding package for Irish aviation. This provided an extra €48 million in supports for 2021, in addition to those announced in budget 2021 of €31.3 million.

In the EU, travel and transport service consumers, not just those using airlines, are protected by law, particularly in the instance of cancellations of services by the travel provider. In the case of cancelled flights, the rules under the air passenger rights regulation, known as EU 261/2004, are clear. The passenger must be given the choice of a refund or alternative flights later at no extra cost. The EU rules allow for passengers to accept a refund ordinarily by cash or bank transfer but also by way of a voucher. The passenger must give their consent to accept a voucher rather than cash. Once that voucher is issued by the airline, it has fulfilled its lawful obligation.

The EU's passenger rights regulations do not cover situations where passengers cannot travel or want to cancel or postpone a trip on their own initiative, for example, by following Government advice not to travel. However, the Minister of State, Deputy Naughton, has taken many opportunities to impress on the main Irish airlines that their treatment of passengers who choose not to travel, for example in following Government advice, needs to be fair and reasonable.

The Minister of State recently sought clarification from both Aer Lingus and Ryanair on their current rebooking policies. She has specifically requested the airlines to set out their respective policies in respect of their voucher and rebooking options for passengers who choose not to travel under the current rules governing international air travel; how they propose to provide for future bookings by passengers should travel restrictions persist; how they propose to handle customers who previously rebooked 2020 travel likely at an extra cost for travel in 2021 or beyond; or those who previously accepted a time-limited voucher but have not yet rebooked their flight.

Aer Lingus has indicated that its book-with-confidence policy, covering all flights scheduled to run until the end of 2021, as well as available to passengers up to the end of September at least, including those who may have already rebooked for a future travel date, allows customers to change their travel date free of charge, as many times as they wish up to two hours before their flight. It also indicated that passengers may swap their booking for a voucher and that their vouchers are valid for five years.

Ryanair has clarified that the expiry dates for vouchers that were issued for flight cancellations last year are being extended to enable passengers to make bookings when travel is open again. The Minister understands from their response that rebooking can be made with no flight change fee for travel before 31 October 2021. Ryanair has also informed the Minister that vouchers that were offered to customers whose flights were cancelled can be converted to cash at any time or can be redeemed for future bookings.

While it is recognised that airlines will keep such policies under review, it is incumbent on them to ensure that they deliver on these policies in a way that is easy to access by their consumers. In continuing dialogue with the airlines, the Minister of State will ensure that the passenger experience is kept in focus in order that the passengers can have confidence to travel with their preferred airline when the conditions allow.

Photo of Jerry ButtimerJerry Buttimer (Fine Gael)
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I welcome the Minister's response, as well as the commitment from both Ryanair and Aer Lingus to honour the arrangements put in place for the travelling public. As the Minister said, the situation is a very difficult one and must be kept under constant review.The Government has given huge support to the aviation sector.

The impact of this matter has been profound. I hope that as a follow-up to today and into the future an aviation restart plan can be put in place. It is important that we instil confidence in the travelling public and that we support our hospitality and tourism sectors. It is also critical that we put in place supports and measures that the Government has for the aviation sector. I thank the Minister for her reply. It is good that there is a flexible approach being taken by the airlines. It is about giving the travelling public confidence to travel when we can - as the Minister has said, the Government advice is that we cannot travel now - and that when we restart, these arrangements are honoured.

I wish the Minister well and every success in her personal life. These are probably some of her last few days in the House. Beir bua leat.

Photo of Helen McEnteeHelen McEntee (Meath East, Fine Gael)
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The objective with regard to the aviation sector, not just for the Minister of State, Deputy Hildegarde Naughton, but also for the Government over the past year, was to make sure that those who were travelling abroad for holidays or for whatever other reason were not negatively affected. A huge amount of work has been done to ensure that, where possible, refunds have been given and where they were not given, that vouchers were provided and that the terms and conditions were as flexible as possible. We have also tried to ensure, in allowing refunds or vouchers, that the aviation sector has been able to remain in operation so that when we open up and travel is allowed, people will actually have an industry to avail of and be able to travel. It is about supporting consumers and the sector to make sure that when people are able to travel and, hopefully, when we navigate our way through Covid-19, we will have a sector that is fit for purpose. The Minister of State is working with colleagues across Government but also with stakeholders within the sector to ensure that we can continue to meet those overall objectives. I will be sure to pass on the Senator's comments to the Minister of State.