Supreme Court Rules Passengers Must Receive Full Refunds for Canceled Flights
Translated & summarized from Mako by baba
Israel's Supreme Court has ruled that travel agencies cannot charge handling fees when a flight is canceled by the airline. The decision clarifies passenger rights, ensuring full refunds for canceled flights booked through agencies. Passengers are advised to communicate in writing and cite the ruling if fees are deducted, with the potential for retroactive claims. This ruling aims to protect consumers from unauthorized deductions on flight refunds.
The story in 6 lines · by baba
- Travel agencies cannot deduct handling fees from refunds for flights canceled by the airline, per a Supreme Court ruling.
- Passengers are entitled to a full refund or alternative flight when an airline cancels their flight.
- Travel agencies must assist customers in obtaining refunds for canceled flights, not disclaim responsibility.
- Customer agreement to terms including handling fees does not override passenger rights for airline-canceled flights.
- Refunds are due within 21 days of a written request, and all communication should be documented.
- The ruling applies retroactively, allowing passengers to review past transactions for improper fee deductions.
A recent Israeli Supreme Court ruling clarifies passenger rights regarding flight cancellations, establishing that travel agencies cannot deduct "handling fees" from refunds when a flight is canceled by the airline. The decision, stemming from a case involving a passenger who paid 1,087 shekels for a Wizz Air flight that was subsequently canceled, found that the travel agency, Issta Israel, was not permitted to withhold $30 in handling fees from the refund.
Advocate Biton, specializing in class actions, explained that the ruling differentiates between passenger-initiated cancellations and airline-initiated ones. If a passenger cancels, fees may still apply depending on consumer protection laws and contract terms. However, when an airline cancels, aviation law grants passengers the right to choose between a full refund or a replacement flight, with the refund encompassing the full ticket price, including taxes and fees.
The court also emphasized the role of travel agencies, stating they cannot disclaim responsibility when a flight is canceled by the airline. Section 15 of the Aviation Services Law mandates that agencies must assist customers in obtaining refunds. The ruling further clarifies that even if a customer agrees to terms that include handling fees, these clauses cannot override passenger rights granted by aviation law, meaning the passenger's agreement to terms does not automatically permit the agency to deduct fees.
Refunds are legally required within 21 days of a written request from the passenger or their agency. The article advises passengers to conduct all communication in writing, keeping records of cancellations, bookings, and payment receipts. If handling fees are deducted, passengers should request a written explanation and cite the Supreme Court ruling (RA'A 58313-09-25 Doron Ben Shimon v. Issta Israel Ltd.). If a resolution isn't reached, small claims court is an option.
This ruling applies retroactively, meaning passengers who previously had fees deducted from refunds due to airline cancellations should review their past transactions. While individual fees might seem small, the cumulative effect for thousands of passengers can be substantial. The core message is that refunds due to airline cancellations are not an opportunity for agencies to profit, and passengers should insist on their full entitlement, documented in writing.
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