The U.S. Transportation Department said on Thursday it has 18 pending investigations against airlines over complaints that they failed to provide timely refunds during the COVID-19 pandemic.
In June, the department said it was seeking a $25.5 million fine from Air Canada over the carrier's failure to provide timely refunds to thousands of consumers who requested them for flights to or from the United States.Air Canada has urged the department to dismiss the complaint saying the department's "arbitrary conduct flatly contradicts years of well-established law."
In June, the Transportation Department said it was investigating the refund practices of an undisclosed number of U.S. and foreign carriers flying to and from the United States and would take "enforcement action" as appropriate. In January, the department ended its probe into United after the carrier "took prompt corrective actions, resulting in thousands of passengers who had initially been denied refunds receiving the required refunds in or around June 2020."
The department said it plans to issue rules on refunds for consumers who are unable to travel due to government restrictions. Existing regulations do not address refund eligibility under special circumstances, such as government-imposed travel restrictions.
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