Airlines

US fines British Airways US$1.1million over delayed refunds

British Airways has been fined $1.1 million by the U.S. Transportation Department (USDOT) for failing to promptly refund passengers for flights to and from the United States during the Covid-19 outbreak, the USDOT announced on Thursday.

Since March 2020, USDOT has received more than 1,200 complaints claiming that British Airways failed to issue refunds in a timely manner. The accusations have been denied by IAG-owned British Airways.

What is American DOT policy? How it assists to protecting passengers rights.(Opens in a new browser tab)

British Airways issued almost $40 million in refunds to consumers with nonrefundable tickets in 2020 and 2021, according to USDOT, which said it will deduct $550,000 from the airline’s fine for this. According to USDOT, the fine “establishes a strong deterrent to future similar unlawful practices by British Airways and other carriers.”

In addition to giving consumers options to rebook travel or request refunds in the event of flight cancellations, British Airways claimed it always acted lawfully.

British Airways failed to maintain sufficient customer service phone lines, according to USDOT, which resulted in customers phoning the carrier for British Airways failed to maintain sufficient customer service phone lines, according to USDOT, which resulted in customers phoning the carrier for several months being unable to reach its customer service agents.

U.S. fines 6 airlines $7.5 million and force them to refund customers(Opens in a new browser tab)

The airline claimed on Thursday that consumers had to wait a little longer to speak with customer support teams “at the height of the unprecedented pandemic when we were regrettably forced to cancel thousands of flights and close some call centers due to government restrictions.” USDOT has been fining airlines it claims did not issue reimbursements in a timely manner.

Source:

Airlines

German Carrier Lufthansa Plans for 20% Job Cuts in Administration

Lufthansa Airlines is reportedly planning significant job cuts in its administrative workforce. According to Manager Magazin, the German carrier intends to reduce administrative positions by 20% as part of its cost-cutting measures amidst an anticipated decline in earnings.

This reduction could impact approximately 400 jobs, the report revealed. While Lufthansa has not directly commented on the layoffs, the airline confirmed its goal of cutting administrative costs by 20% by 2028.

Russian Su-57 Fighter Secures First International Sale at Zhuhai Airshow

The strategy involves leveraging digital technologies, including artificial intelligence and automation. “A hiring freeze is currently in place for administrative roles at Lufthansa Airlines,” said a company spokesperson.

The staff reduction is expected to occur through natural attrition and age-related turnover, rather than forced layoffs. The internal projection cited by the magazine warns that Lufthansa could face an operating loss of €800 million ($843.92 million) by 2026 if no corrective measures are taken.

Lost Tool Found in Qantas A380 After 34 Flights

The report highlights the challenges companies face in aligning workforce requirements with current and future demands. Failure to adapt could necessitate drastic actions, such as restructuring and layoffs, which carry significant repercussions for both the organization and its employees.

As Lufthansa navigates these challenges, the airline appears committed to balancing cost efficiency with digital transformation to maintain its competitiveness in a rapidly evolving industry.