ASTA Files Written Comments Against DOT’s Air Ticket Refund Proposal

The American Society of Travel Advisors (ASTA) is continuing its fight against the latest proposal from the Department of Transportation (DOT) requiring advisors to pay client refunds out of pocket for canceled flights.

ASTA is urging the DOT to decline to impose the final rule, which would burden advisors and agency owners with not only paying client refunds out of pocket, but doing so without being in possession of the funds.

Getting the proposal changed, which was unveiled in early August, is, and has been, ASTA’s top priority.

“While we share the Department’s goal of ensuring consumers get the refunds they are entitled to when an airline cancels a flight, putting travel advisors ‘on the hook’ for issuing those refunds is the wrong way to do it,” said Zane Kerby, ASTA President & CEO.

“In fact, it will negatively affect consumers in the long run as the financial risk associated with this proposal may lead agencies to stop selling air tickets altogether, depriving consumers of the valuable consultatory services and comparative shopping options advisors provide. We urge DOT to make the changes we’re suggesting.” 

In the filing, ASTA senior vice president and general counsel Peter Lobasso writes that an advisor’s regulatory obligation should be limited to “making reasonable efforts to assist the affected consumer in securing the refund from the carrier.” And, if that’s not feasible, an agent should only be obligated to issue a refund if they are the merchant of record of the transaction, they have received notice from the airline that the passenger is entitled to a refund, and they are in possession of the consumer’s funds.

The total filing is 115 pages and touches on a number of elements of the DOT’s proposal, including the definition of a significant flight change, a requirement to provide non-expiring vouchers, the ability of agencies to charge service fees, and more. 

Public comment for the proposal closes on Friday, Dec. 16, and the DOT is expected to issue a final rule sometime next year.