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Airlines Could Start Facing Legal Challenges Over Withholding Refunds

Matthew Parsons

Skift Take

Suing an airline is a drastic measure, but shows how deep this crisis is.

Frustration is mounting over the amount of refund money airlines are holding — with one global corporate travel agency threatening to take legal action. It's also claimed the situation is exacerbated by airlines increasingly switching from global distribution systems to the International Air Transport Association's billing and settlement process to carry out these refunds. Since the crisis began, Norway’s G Travel has furloughed 400 employees of its 550-strong workforce, and has decided to use the courts to force airlines into returning its cash.

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“We are considering taking them to court to secure the money,” Finn Hansen, CEO of G Travel, told Skift. “You can do that easily in Norway. It can be handled quite fast by the courts to secure the money, both for us and our clients. We will start with one airline to have the courts look into it, and see the results from that one. I think we are the first agency to take this into consideration right now.” G Travel, which has an annual turn

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