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Most of the Scandinavian Airlines (SAS) fleet was grounded for a couple of months earlier this year … [+]
Ritzau Scanpix/AFP via Getty Images
Many airlines in northern Europe have struggled to meet their refund obligations as the coronavirus pandemic saw an unprecedented number of flight cancellations.
Scandinavian Airlines (SAS) is among the worst offenders, with many customers waiting more than five months for the refund of often substantial amounts of money. Consumer authorities in Sweden and Norway are among the airline’s harshest critics.
Consumer legislation in both countries requires airlines to refund a canceled flight within seven days, although different rules are in place for package holidays and flights booked via travel agents.
One couple who had a trip to Turkey canceled in mid-March told NRK that the refund was still outstanding more than five months later. The social media accounts of SAS are clogged with customer complaints, with many also reporting delays of more than five months.
Unacceptable
The Norwegian Consumer Council described the situation as “unacceptable” and has called on the Civil Aviation Authority to issue fines.
A statement from the Council said that it understands that the COVID-19 crisis has hit tourism hard, but the airlines have now had “more than enough time” to sort it out: “The fact that the airlines still do not comply with and respect established and basic consumer rights is an unacceptable situation. This affects many consumers, and for many there are large amounts involved.”
The Council also reminds consumers that if the trip was paid by credit card, you can contact the credit card provider to request a chargeback.
One SAS customer told Expressen they received a refund just two days after making a fraud complaint to the Swedish police.
SAS: Refunds “will be paid”
Despite the long waiting list and rumors of severe financial trouble, the airline insists that everyone entitled to a refund will get their money back. “I understand that many customers are frustrated and that many have had to wait a long time,” says SAS Norway spokesperson John Eckhoff, who insists that SAS has refunded more than one million customers.
However, many of the refunds already processed were in the form of a voucher for future flights rather than cash. While saying such vouchers are an option for frequent travelers, the Norwegian Consumer Council called them “unsecured loans to airlines.”
Eckhoff explains the airline is increasing its capacity for handling refunds: “We process more than 5,000 cases a day, and have increased the capacity of our customer service to 200 people.”
SAS persists with manual processing
SAS is hardly alone in struggling to meet its obligations during the pandemic. However, other airlines including Star Alliance partners Lufthansa and fierce rivals Norwegian Air seem to be handling claims more quickly. Many customers with both airlines have reported waiting times of several weeks, rather than months, despite initial manual processing of most claims.
Dagens Næringsliv reported that Norwegian has now improved its refund system to automatically process claims, including for bookings made through travel agents. Norwegian CEO Jacob Schram has promised all outstanding refunds will be paid during September and October.
SAS made no comment on why they cannot automatically process refunds like other airlines or when outstanding refunds will be paid. However, a recent report in Dagens Næringsliv suggests that some customers will have to wait up to nine months.