ICAGY International Consolidated Airlines Group SA (PK)

By Anthony O. Goriainoff

The U.K.'s Competition and Markets Authority said Wednesday that it has opened an investigation to determine whether or not British Airways and Ryanair Holdings PLC had broken consumer law by failing to offer refunds for flights customers couldn't legally take.

The CMA said that during lockdown periods stemming from the coronavirus pandemic in the U.K. British Airways--a part of conglomerate International Consolidated Airlines Group S.A.--and Ryanair didn't give monetary refunds to people unable to legally fly. It said that BA offered vouchers or rebookings, while Ryanair offered rebookings.

The regulator said it opened an investigation into the airline sector in December following reports that consumers were being denied refunds for flights they couldn't legally take.

The CMA said it was concerned that by failing to offer customers their money back, both companies may have breached consumer law. It said that it was now seeking to resolve these issues with both operators and that this may include seeking refunds, or other forms of redress, for those people affected.

The regulator said both companies have the opportunity to respond to its detailed concerns.

"While we understand that airlines have had a tough time during the pandemic, people should not be left unfairly out of pocket for following the law. Customers booked these flights in good faith and were legally unable to take them due to circumstances entirely outside of their control. We believe these people should have been offered their money back," CMA Chief Executive Andrea Coscelli said.

Write to Anthony O. Goriainoff at anthony.orunagoriainoff@dowjones.com

(END) Dow Jones Newswires

June 09, 2021 02:45 ET (06:45 GMT)

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