ICAGY International Consolidated Airlines Group SA (PK)

By Anthony O. Goriainoff

The U.K. markets regulator said Thursday that it was closing its investigation into British Airways--part of International Consolidated Airlines Group S.A.--and Ryanair Holdings PLC over customer refunds related to Covid-19.

The Competitions and Markets Authority said that its examination of relevant law concluded that the law didn't provide passengers with a sufficiently clear right to a refund under the special circumstances brought about by the pandemic to justify continuing with the case.

The CMA said that a lack of clarity in the law "makes it insufficiently certain that it would be able to secure refunds for customers of British Airways and Ryanair who were prevented from flying by Covid-19 travel restrictions." The regulator said that it can only enforce the law as it stands.

"Consumer protection law sets out that passengers are entitled to refunds when an airline cancels a flight, because the firm cannot provide its contracted services. However, it does not clearly cover whether people should be refunded when their flight goes ahead but they are legally prohibited from taking it," the CMA said.

The CMA launched a probe in June 2021 into the airlines over concerns that they may have broken the law by failing to offer refunds to customers who couldn't legally fly during the lockdown.

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

(END) Dow Jones Newswires

October 07, 2021 02:48 ET (06:48 GMT)

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