The United States automatic refund rule for airlines came into full effect on October 29, making it mandatory for airlines to provide prompt cash refunds for passengers.
Air New Zealand outlines in its information for agents that the new rules apply to any journey to, from or transiting the US, regardless of the carrier, where the ticket was purchased or where the passenger commences their journey, reports the New Zealand Herald .
According to the US Department of Transportations DOT latest social media post on the subject, passengers are entitled to a refund if a flight is cancelled or significantly changed and the passenger does not accept the significantly changed flight, or a rebooking on an alternative flight or alternative compensation.
A significantly changed flight is defined by the DOT as a flight with a departure or arrival time changed by more than six hours, a flight with additional connection points, a flight where the passenger is seated ina lower cabin than originally purchased, a flight departing from a different airport or flights with changes to connecting airports or aircraft, when the passenger has a disability.
This applies to both controllable and uncontrollable situations. As an agent, you must inform customers of their eligibility to receive a refund if they choose not to travel, said Air New Zealand.