The Competition & Markets Authority is investigating whether British Airways and Ryanair have broken consumer law by failing to offer refunds for flights customers could not legally take.
The government body opened an investigation into the brand and its sister travel operator, Alpharooms, in February after receiving hundreds of complaints.
The government body has published an open letter to the sector and has also sent it directly to the 100 package travel firms with the most complaints about them.
An investigation by the Competition & Markets Authority has found Teletext Holidays failed to refund many of its customers for package holidays cancelled due to the pandemic.
The company signed formal undertakings in December which committed it to pay out over £7 million to more than 9,000 customers when their holidays were cancelled due to the Covid-19 pandemic.
The Competition & Markets Authority is investigating whether airlines have breached consumers’ legal rights by failing to offer cash refunds for flights they could not lawfully take.
Vacation Rentals has changed its policy to ensure customers will have the option of a full refund if a booking has been cancelled because of restrictions associated with the coronavirus outbreak.
The CMA acknowledged that most businesses are acting reasonably in what are unprecedented circumstances, and the current crisis is placing everyone under pressure, but said consumer rights cannot be ignored.
Following an in-depth investigation, the Competition & Markets Authority has blocked Sabre’s proposed takeover of Farelogix. The government body argued the deal could result in less innovation in their services, leading to fewer new features that may be released more slowly.