CMA pulls BA/Ryanair Covid refund probe as law 'lacks clarity'

Britain’s competition regulator has dropped its investigation into British Airways and Ryanair’s refusal to refund passengers during the Covid crisis after concluding that the law lacked clarity.

Desperate to cling on to cash as the pandemic forced the cancellations of flights around the world, airlines ignored refund rules and instead offered passengers the option to rebook or a voucher.

Millions had to wait months for billions of pounds in refunds for flights they were legally unable to take because of Covid restrictions.

Typically, airlines must refund customers within seven days of a flight being cancelled.

However, the Competition and Markets Authority (CMA) said that there was a “lack of clarity” in UK legislation after launching its investigation in June, saying those legally unable to take flights booked in good faith should have their money back.

Because the flights were a result of government Covid restrictions, rather than being cancelled by the airlines, laws were “insufficiently certain” that the CMA would be able to secure refunds for customers of British Airways and Ryanair.

CMA chief executive Andrea Coscelli said the regulator “strongly believed” people should be offered a full refund and the probe was launched “in the hope that we would be able to secure a positive outcome for consumers”.

“However, after considering the relevant law and gathering evidence in our investigation, we have concluded that the length of time that would be required to take this case through the courts, and the uncertain outcome, can no longer justify the further expense of public money.”

“Given the importance of this to many passengers who have unfairly lost out, we hope that the law in this area will be clarified.”