Air Transat cancellation - no refund?

Heathermck

We had booked return flights to Toronto which are now being cancelled by Air Transat. They have said that they will not refund, only offer a credit to rebook within 24 months. Can they do this? 

DPS-2016

As far as I understand (from MSE also), no - but we may have a fight on our hands.  
I'm booked for Vancouver in June - and although not cancelled yet, I think it'd take a miracle for it to go ahead as planned.  
If you booked on credit card, you could always go down the route of a chargeback.  
Rock and a hard place I guess.  They're not going to make it easy - refunding all customers will likely collapse an airline - but I would say it's the duty of governments to provide the assistance rather than individuals lose a lot more money than they're already going to lose - we need help to!
That having been said, if you think that a credit is an option you don't mind, and you can rebook for later in the year, next year etc then don't rule it out.  However, this is getting quite difficult, for example, for workers who are facing restrictions on annual leave or uncertain financial times.  
They've released a new update today and a link to a webpage confirming their position:

FAQ - Answers to Your Questions (COVID-19)

Transat cancelled my flight/package. Will I get a refund?

No. Since the cancellation is the result of exceptional circumstances surrounding the COVID-19 pandemic, you will not get a refund. Instead, you will receive a credit for the value of your flight/package, applicable to your next trip with Transat.

• Your travel credit will be valid for 24 months after your original return date.
• You don’t need to contact us to receive this credit; Transat will automatically apply a credit to all cancelled bookings.

• Processing the credit may take some time, as we have a lot of bookings to process.

• The credit may be processed in several steps: for instance, one passenger at a time, or your seat selection in a second step. But rest assured that the full amount of your booking will be credited.

Marmaduke123

Thanks for this. We are also expecting Air Transat to cancel our flights, out to Vancouver on 30th June, back from Calgary on 17th July. We also have an internal flight from Vancouver to Calgary with Air Canada. 

If we were younger we would be happy to accept a credit for later travel, recognising that having to pay out for a lot of refunds may cause the airlines to collapse. However, as we are in our late 70s we can't plan with confidence for a holiday in North America next year,  because of increased insurance costs and possible health issues.

In due course we will be explaining this to the airlines, but we fully expect to have to pursue an S75 claim.

Our travel insurance specifically excludes cancellation cover because of a pandemic in the small print!

frogeyepete

I booked flights to and from Canada with Air Transat for my wife and myself. We were due to fly out on 31st May and Air Transat have cancelled all flights up to and including this date. I have received an email saying that they will be giving us credit that has to be used within a 24 month period after the date of our return flight. I have looked at their website and they have said that due to the problem with Covid-19, they are not giving refunds, only credits. Are they legally allowed to do this? I don't know when if ever I would re-book to fly to Canada.

Kevgt69

Hi, I have the exact same issue, same company and same month.  Did you ever hear back or find out about this?  I was wondering if we could claim this back from the credit card provider used to pay?  Also, can we get a refund on the Travel Insurance that is no longer needed?

Alan_Bowen

Air Transat is following Canadian government advice which is that they can issue vouchers instead of cash refunds. If the flights are from the UK, EU261 still applies which means you can demand a refund but I fear they will simply say they are following their own country's rules and ignore your request. If you paid by credit card you may need to warn them you are going to request a chargeback if they are not prepared to comply with UK rules. Having said that, very few airlines are playing by the rules at the moment and claim they will go bust if they have to refund everyone and as there is no financial protection against airline failure, you would have to go to your card issuer then anyway. 

frogeyepete

Kevgt69 said:

Hi, I have the exact same issue, same company and same month.  Did you ever hear back or find out about this?  I was wondering if we could claim this back from the credit card provider used to pay?  Also, can we get a refund on the Travel Insurance that is no longer needed?

I think that as Alan has said Air Transat are just following Canadian rules. I don't hold out much hope for a refund. As for travel insurance mine ran out this month and any renewals exclude any issues due to Covid-19 (even bearing this in mind prices seem to have gone through the roof). I have always been pretty sceptical about insurance. There was a Goons Show ("Insurance the White Man's Burden") where Neddie Seagoon was persuaded to take out insurance against the English Channel catching fire. Needless to say it did (Eccles poured oil on it and set it alight), but no payout!

DiamondLil

frogeyepete said:

I have always been pretty sceptical about insurance. There was a Goons Show ("Insurance the White Man's Burden") where Neddie Seagoon was persuaded to take out insurance against the English Channel catching fire. Needless to say it did (Eccles poured oil on it and set it alight), but no payout!

Thanks for this - cheered me up no end. Them were the days....

BuddyGirl

I was also booked on an Air Transat May flight.  It was to attend a wedding in Toronto. I've been emailed vouchers. We have no need to go to Canada now, or in the next 24 months.  I do have insurance but wonder if it's worth the argument with Air Transat first.

Life__Goes__On

Legally they should refund you in "cash" for the outbound flight, as this is EU which they agree to as terms of flying out of an EU airport. The return leg isn't covered. But I see that as a battle as may take many years

You have much chance of a refund if you paid via a credit card as payment is covered by English Law not Canadian

DPS-2016

Marmaduke123 said:

Thanks for this. We are also expecting Air Transat to cancel our flights, out to Vancouver on 30th June, back from Calgary on 17th July. We also have an internal flight from Vancouver to Calgary with Air Canada. 

If we were younger we would be happy to accept a credit for later travel, recognising that having to pay out for a lot of refunds may cause the airlines to collapse. However, as we are in our late 70s we can't plan with confidence for a holiday in North America next year,  because of increased insurance costs and possible health issues.

In due course we will be explaining this to the airlines, but we fully expect to have to pursue an S75 claim.

Our travel insurance specifically excludes cancellation cover because of a pandemic in the small print!

You're welcome.  Sorry to hear about the problems you've had and can fully understand your choices.  
I too agree that it's a difficult time for airlines - as well as everybody of course! - but whilst I do believe that companies are entitled to coax you into having vouchers, I think if you demand your money back (for whatever reason, or no reason at all) then it should be returned within your legal rights.  To do otherwise, in my opinion, is very shocking behaviour, and I would certainly consider twice whether I graced them with my custom in the future.  
Ultimately, whilst I appreciate it's not the fault of the airlines, nor is it your fault - and you shouldn't be made to pay the price.  You've paid for a service in good faith if the company cannot then deliver it you are entitled to a refund.  
I hope the process isn't too painful for you.  I expect I may have to go through a similar one soon, unfortunately...