By Marine Strauss
BRUSSELS (Reuters) – EU airlines and travel agencies should offer vouchers for flights and vacations canceled due to coronavirus that are valid for at least 12 months, according to European Commission in recommendations to help boost travel and tourism in Europe.
The recommendations, described in a document seen by Reuters and to be released on Wednesday, are intended to make coupons attractive to passengers who might otherwise require a full refund.
EU member states have urged the EU executive to suspend rules requiring airlines to fully reimburse flights canceled due to the COVID-19 pandemic. EU recommendations do not suspend reimbursement rules, but appear to offer a compromise in order to help airlines and travel agencies with money.
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The Commission will also recommend that vouchers be covered by member states against insolvency, according to the document. Coupons must also offer the same services and routes, in the event of theft, and travel conditions as the original reservation.
"Subject to availability and regardless of any tariff or price difference, carriers must ensure that coupons allow passengers to travel on the same route under the same conditions of service as those described in the original reservation ; the organizers must ensure that the coupons allow travelers to book a travel package contracted with the same type of service or a quality equivalent to the finished package, "said the document.
Airlines across Europe, including Lufthansa and Air France-KLM, have called for bailouts from the state, as blockades against coronaviruses have forced them to land their fleets for more than an endless month in sight.
"In order to limit the negative effects on passengers or travelers during the COVID-19 pandemic, Member States should actively consider putting in place voucher guarantee systems to ensure that in the event of a insolvency of the bond issuer, passengers or travelers are reimbursed ", specifies the document of the EU.
Customers who do not use coupons will receive an automatic refund up to 14 days after the expiration of the validity period. For coupons valid for more than a year, passengers should be able to request a full cash refund up to 12 months after the coupons are issued, according to the document.
"The various economic operators in the transport and travel value chain must cooperate in good faith and strive to share the burden caused by the COVID-19 pandemic," said the document.
To ease the burden on the most affected airlines and travel agencies, the EU has also called on consumer and passenger organizations at all levels to encourage travelers to accept coupons rather than refunds.
However, the law that protects customers regarding their travel rights is not suspended and the new guide is not legally binding, which means that it is up to the consumer to accept a coupon or full cash refund.
(Marine Strauss report; additional report by Gabriela Baczynska; edited by Susan Fenton) OLUSECON Reuters US Online Report Economy 20200511T175428 + 0000