What Does PAL Have to Say About the New Immediate Cash Refund Rule for Airlines in the US?

[Lee]

Even weather cancellations are to be refunded.

Will airlines have that kind of money on hand to automatically provide cash refunds, if lets say O'Hare is shut down for half a day due to a unexpected snow storm?

Quote

 

In late April, the United States Department of Transportation rolled out new rules that require airlines to automatically provide cash refunds to passengers for canceled and significantly delayed flights. 

"Passengers deserve to get their money back when an airline owes them—without headaches or haggling," said US Transportation Secretary Pete Buttigieg. The new rule covers situations when airlines cancel or significantly change passenger flights, significantly delay checked bags, or fail to provide the extra services passengers have purchased.

The new rule covers not just American-owned and based airlines, but all carriers operating out of any destination within the United States. This includes Philippine Airlines, which offers flights to Honolulu, San Francisco, Guam, Los Angeles, and, starting in October, Seattle.

On Tuesday (April 30), Philippine Airlines President and COO Capt. Stanley Ng said it is tightening its flight schedules and maintenance program in the wake of the new US DOT rule.

"[The new ruling] is going to affect us in a way now," Ng said. "But of course, that's not what we want. We don’t want disruptions as well. So we’ll try to be more reliable to avoid that; these [cash refunds] are for exceptional cases naman." 

Canada had actually imposed a similar ruling for carriers flying to destinations within its borders. PAL also flies to Vancouver and Toronto.R

"If it’s force majeure, I don’t think we have to pay," Ng said. "If the [flight] delay or cancellation is caused by the airline then that’s the time you have to pay…so we just have to be more disciplined in terms of scheduling flights [and] scheduled maintenance programs."

In addition to immediate refunds, the new airline refund rules also mandate air carriers and ticket agents to disclose extra service fees alongside the full fare. Passengers are entitled to refunds to these extra services—such as Wi-Fi, seat selection or inflight entertainment—that have been paid for but not provided. 

"Too often, airlines drag their feet on refunds or rip folks off with junk fees," US President Joe Biden said last week, arguing the new mandate will ensure "automatic refunds to passengers when they're owed, and protect them from surprise fees."

The refund rules apply to flights canceled by carriers regardless of the reason including if it is because of weather. But passengers are not entitled to refunds if they are rebooked and travel on another flight. 

The US government will also require airlines to refund baggage fees if bags are not delivered within 12 hours of domestic flights arriving or 15 to 30 hours of their international flight arrivals, as well as for services that do not work or are not provided. Airlines must promptly and automatically issue refunds if flights are canceled.

Ng was the keynote speaker at the launch of the Virtus Awards handed out by the Hotel Sales and Marketing Association (HSMA). During an interview, Ng also commented on the reported high cost of vacationing in the country due to rising room rates and increased airfares.

"Right now, we’re not seeing a slowdown in domestic travel," Ng said. "And if you plan early enough, usually the fares are still quite competitive, unless it’s a last-minute booking, as we all know, it’s always expensive."

According to Ng, base fares for air travel have remained the same since before the pandemic and that the perceived higher cost of domestic travel is partly due to inflation. 

 

What Does PAL Have to Say About the New Immediate Cash Refund Rule for Airlines in the US? (msn.com)

 

 

 

 

 

 

What Does PAL Have to Say About the New Immediate Cash Refund Rule for Airlines in the US? (msn.com)

 

[Joey G]

"Cash" will mean you would get reimbursed via your payment method... vice i.e., airline credit.  Or check if you somehow were off the wall enough to purchase via cash or check. No airlines will be handing dollar bills over to anyone real time.

Plus they will have the option offer you a different deal... and if you accept it... then "the new rule" is basically off the table.

I think the whole thing is just a political shell game to make it look like they are cracking down on airlines as a pre-election show. There are already rules about getting refunds for late flights... and often passengers are offered more than they are obligated to get, or do well enough to be OK with what they are offered.

Now... with all that said... do I believe there are some PAL travelers salivating at the thought of "cash refunds" for a delayed ??? Yep... and they probably the same people that use cardboard boxes for luggage.  But I digress.....

Edited May 2 by Joey G
spelling

[MotorSarge]

24 minutes ago, Joey G said:

and they probably the same people that use cardboard boxes for luggage. 

Well....not everybody uses a samsonite....

I still use duffle bags for soft items such as clothing since they are under 3 pounds ea.

[scott h]

1 hour ago, Lee said:

But passengers are not entitled to refunds if they are rebooked and travel on another flight.

The above is the kicker, if this does start to become a problem for the airlines, they will bond together and jump through hoops with each other to rebook each other's cancelled flights.

1 hour ago, Joey G said:

pre-election show.

Spot on! In my view its all for appearance sake.

[Peaceful John]

Although I wouldn't mind this rule taking effect, reality says it's nothing but an election gimmick; and there's no way it would ever take effect.  Once we are past the first week in November, you won't hear another word about it.  The airlines contribute way too much money to the politicians, and the costs of this alone would put most airlines in dire straights. Airlines would be required to have hundreds of millions of dollars in ready cash reserve just to be able to comply with this and hire a whole new infrastructure to staff this.  Again, it's nothing but an election time gimmick and it's doubtful the airlines are even taking it serious.  Besides, what stops the airlines from continuing their "misinformation" (lying) campaigns as they do now to divert the fault to the airport staff, the national weather service, or everyone's recent favorite "blame it on Boeing".  And one last thought, PAL is so far gone and over the hill when it comes to customer service, there's no way possible they would, or even could, comply with this.  They "suck" on a level that is far beyond any recovery.  Heck, it will be years before they can refund the money the owe customers now.  PAL's golden rule, "Once they have your money it's 100% their money.  Even if they cancel or overbook".  I will believe this when the money is in my hand Brothers. 

[BrettGC]

The irony is that I've never had an issue with refunds from PAL when they're at fault.  They've cancelled twice on me domestically and once internationally and each time they asked the question "rebook, credit or refund sir?" and the funds were back in my account within 24 hours, full amount including the "extras".  They were far better experiences than with Qantas, Virgin and British Air all of whom I had to threaten with Fair Trading - a government consumer protection authority in each state in Australia that actually have teeth and statutory power. 

[MotorSarge]

13 hours ago, Peaceful John said:

They "suck" on a level that is far beyond any recovery.

The only reason our family flies PAL is because of location and direct flights....

[JJReyes]

Our departure on Philippine Airlines changed from a morning to afternoon flight to Los Angeles.  The airlines offered an $800 cash compensation for the inconvenience which an agent would give us at the airport.  At the last minute, while waiting at the Mabuhay Lounge, the agent arrived and informed us they had no dollars and gave instead the compensation in pesos in P200 and P500 bills.  With the local currency in my bag, that placed me above the P50,000 Bangko Sentrale limit, so I exchanged currency with a money changer.  The large commission charge and lousy rate meant the actual compensation was reduced to $750.

[craftbeerlover]

On 5/3/2024 at 6:17 AM, Joey G said:

Yep... and they probably the same people that use cardboard boxes for luggage.

Huh?  Explain that please

[JJReyes]

1 hour ago, BrettGC said:

The irony is that I've never had an issue with refunds from PAL when they're at fault.  They've cancelled twice on me domestically and once internationally and each time they asked the question "rebook, credit or refund sir?" and the funds were back in my account within 24 hours, full amount including the "extras".  They were far better experiences than with Qantas, Virgin and British Air all of whom I had to threaten with Fair Trading - a government consumer protection authority in each state in Australia that actually have teeth and statutory power. 

We were in Athens, Greece during the start of Covid.  British Air was not answering their phone or returning emails.  To get back to the United States, we had to fly Air France at full fare one way.  Then British Air refused giving a refund claiming half the ticket was already used.  I decided not to fight because it would simply raise my blood pressure.  One and a half years later, the government forced the airline to refund everyone.

Our return flight, also from Athens during another trip, our Virgin flight was cancelled.  The airline refused to rebook because we had purchased the ticket from a third party (authorized travel agent).  They agreed to a refund, but we had to pay full fare one-way on Turkish Airlines.  I suspect they had some serious maintenance issues and were down one long range aircraft.

Edited May 4 by JJReyes