Airlines keep €285m of passengers' money

FLYING:THE TWO largest airlines flying out of Ireland have been accused of holding on to more than €285 million of passengers' money in unreturned taxes, fees and charges (TFCs) last year.

A new passenger campaigning website, airtaxrefund.com, said this week that it had dealt with passengers on over 500 flights since the service was launched in October.

Based on this sample, the average amount of TFCs paid per passenger per flight was €34 for Ryanair and €40 for Aer Lingus.

These fees include government taxes and airport charges as well as handling and baggage fees, insurance, priority boarding, seat reservation and other fees which airlines apply, but do not incur, if the passenger doesn’t travel.

There are differing views on the percentage of would-be travellers who book flights but don’t turn up. Ryanair’s chief executive Michael O’Leary said last autumn that the average figure for “no-shows” was 5 per cent while a British Air Transport User’s Council survey of 2,000 people last July put the number who cancelled at 15 per cent.

Airport charges and taxes are supposed to be fully refundable in the event of a passenger not travelling but many airlines make it all but impossible for people to claim their entitlements, particularly through the imposition of high administration charges.

The website has called on airlines to drop the administration fees which can be as high as €30 per person, per flight to return taxes and other charges. A family of four who book a return journey but do not travel can be charged as much as €240 in administration fees if they seek their taxes back.

The site is also calling on the 30 days limit on refunds to be dropped and an extension of refunds to include all TFCs which are not incurred by airlines if passengers do not travel. “It’s early days yet, but some trends are already becoming clear,” Airtaxrefund.com founder and CEO Brian Whelan said.

“Firstly, airlines are making out like bandits. They charge taxes, fees and charges of between €34 and €40 per passenger/flight and hold on to roughly €285 million when passengers don’t fly.”

Mr Whelan said that “the low cost model has been great for travellers” but “the idea that you can rip-off customers has had its day”.