{"id":143728,"date":"2020-05-02T06:01:31","date_gmt":"2020-05-02T06:01:31","guid":{"rendered":"https:\/\/www.bnreport.com\/eu-commissioner-margrethe-vestager-cautions-against-plans-to-cancel-flight-refund-scheme\/"},"modified":"2020-05-02T06:01:31","modified_gmt":"2020-05-02T06:01:31","slug":"eu-commissioner-margrethe-vestager-cautions-against-plans-to-cancel-flight-refund-scheme","status":"publish","type":"post","link":"https:\/\/www.bnreport.com\/en\/eu-commissioner-margrethe-vestager-cautions-against-plans-to-cancel-flight-refund-scheme\/","title":{"rendered":"EU Commissioner Margrethe Vestager cautions against plans to cancel flight refund scheme"},"content":{"rendered":"

The EU Commission\u2019s Executive Vice-President has expressed caution over plans by a majority of member states to wave mandatory refunds for cancelled flights to help European airlines hard-hit by the COVID-19 pandemic.<\/p>\n

Euronews broke the news on Wednesday<\/a> that transport ministers from a majority of the bloc\u2019s member states were lobbying the Commission to suspend rules forcing airlines to offer full refunds instead of a voucher for future travel.
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\nThe push, spearheaded by France and the Netherlands, aims to offer a financial lifeline to struggling airlines.<\/p>\n

\u201cAir carriers are no longer generating passenger business, yet they continue to incur high running costs,\u201d a joint statement read.<\/p>\n

It added that the rule to offer a full refund for a cancelled flight \u201cplaces airlines in a difficult situation where they are facing a serious cash flow challenge.\u201d<\/p>\n

But Margrethe Vestager, who also oversees the Commission\u2019s Competition portfolio, appeared lukewarm about the proposal on Thursday.
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\n\u201cThere are many passengers who would need the money. People may have lost their jobs, they may need money for medication, to pay their rent,\u201d she said.<\/p>\n

\u201cI think its very different for someone like me, who are privileged, who have my high salary, of course, I can accept a voucher. But it is these differences that make it kind of difficult to say well, of course, everyone should accept a voucher,\u201d she added.<\/p>\n

Asked by Darren McCaffrey, Euronews\u2019 Brussels correspondent, if the proposal would not amount to European citizens being forced to pay twice to bail out airlines given that many governments have already announced large sums of money to help national carriers, Vestager replied: \u201cYou can say that, yes\u201d.<\/p>\n

Paris and Amsterdam have for instance pledged a combined \u20ac9 billion to rescue Air France-KLM.<\/p>\n

\u201cWhat the colleagues who are handling this directly have to deal with right now is, of course, this dilemma that we do have European rights. On the one hand you need it and on the other hand, of course, the airlines are in a very difficult position because these are businesses with very high fixed costs and no income,\u201d Vestager also said.<\/p>\n

According to an April 28 report from the UN\u2019s International Civil Aviation Organisation (ICAO)<\/a>, the pandemic is likely to wipe out between $153 billion to $231 billion (\u20ac141 billion to \u20ac213 billion) in operating revenues for airlines.<\/p>\n

European airlines would be the most impacted with losses estimated to reach as much as $101 (\u20ac93 billion), ahead of their counterparts in Asia and the Pacific ($88 billion, \u20ac81billion) and in North America ($32 billion, \u20ac29.5 billion).<\/p>\n

Vestager recognised that the bloc\u2019s performance at the beginning of the health crisis was \u201cmessy\u201d, argued it is now \u201cgetting better but we are not there yet\u201d.<\/p>\n

The pandemic has also once again exposed deep rifts between member states on where the future of the European project lie.<\/p>\n

Several heads of states, including French President Emmanuel Macron and Italian Prime Minister Guiseppe Conte have warned that the pandemic could make or break the EU and urged for more solidarity and financial burden-sharing between member states.<\/p>\n

But other nations, known as the Frugal Five, are publicly against deeper financial integration.<\/p>\n

For Vestager, \u201cthe simple truth of the matter is that we can only recover together, because every business has a supplier in a member state, and a customer in a third member state\u201d.<\/p>\n

\u201cOnly if we see this and grow together, we can recover, we can fight climate change we can be more digital. So if everything thinks they are on their own, well then we would all lose,\u201d she went on.<\/p>\n

Read from source <\/a>
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