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Wednesday, January 15, 2025

Flight Delays & Cancellations: Are You Due a Refund?

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Global IT Outage Grounds Flights, Leaves Travelers in Limbo

A widespread global computer outage on Friday, July 19th, 2024, caused major disruption for airlines, grounding flights and creating chaos at airports around the world. The outage, linked to a tech update by cybersecurity firm CrowdStrike, impacted a range of companies, including Microsoft, leaving many businesses scrambling to restore critical apps and services. While airlines are ultimately responsible for their passengers, the ongoing fallout raises the question: Is this a controllable event or one beyond their control?

Key Takeaways:

  • Major airlines like United, Delta, and American grounded flights due to the global IT outage, resulting in significant delays and cancellations.
  • Travelers impacted by these disruptions may be entitled to refunds, hotel or meal vouchers, or other compensation, but airline policies on these matters differ significantly.**
  • The outage presents a crucial question: Is it a “controllable” event under airlines’ responsibility? This distinction determines what compensation travelers are eligible for.
  • This incident underscores the potential risks of relying on third-party software providers, highlighting the importance of robust disaster recovery plans for all businesses, especially those in heavily interconnected industries.

The Scramble For Refunds and Rebooking

While the U.S. Department of Transportation (DOT) mandates a full refund for canceled flights if the passenger chooses not to travel on an alternate flight, this doesn’t extend to delays or cancellations caused by uncontrollable events. These rules apply even to non-refundable tickets, meaning passengers are entitled to a cash refund if they choose not to fly on a rebooked flight or accept a travel voucher. However, determining what constitutes a "significant" delay for a refund relies on factors like flight length and individual circumstances, with the DOT offering no clear definition.

A new DOT rule, set to take effect in October, requires airlines to automatically process refunds for customers affected by significant schedule changes or delays. This rule defines "significant" changes as delays exceeding three hours for domestic flights and six hours for international flights. However, this rule does not apply to passengers affected by Friday’s outage, meaning they may face a more complex process to claim refunds.

The Grey Area of Airline Responsibilities

For travelers who choose to rebook and fly to their destination, the situation becomes more complex. While most airlines commit to rebooking passengers on their own flights, some may make exceptions for partner airlines. Additionally, many airlines will offer meals and/or hotel accommodations for lengthy delays or cancellations. However, these commitments are contingent on the event being "controllable," meaning it does not fall under circumstances outside their control.

The DOT generally considers "controllable" events to include those related to airline maintenance, crew issues, cabin cleaning, baggage loading, and fueling. On the other hand, "uncontrollable" events include weather and acts of nature, unforeseen aircraft issues, and unforeseen security threats.

This is where the issue of the global IT outage becomes particularly complex. While the outage was triggered by a tech update from CrowdStrike, a third-party provider, it ultimately impacted airlines’ ability to operate. Some argue that the choice of vendors ultimately falls under airlines’ control, while others maintain that the event was beyond their reach. This question remains open to interpretation, and its resolution could have significant consequences for airlines and their passengers.

Preparing for Future Disruptions

The impact of the global IT outage serves as a stark reminder of the interconnected nature of the modern world and the vulnerabilities inherent in relying on third-party vendors. It emphasizes the importance of robust disaster recovery plans for all businesses, particularly in areas like aviation where disruptions can have a significant impact on people’s lives.

Airlines, in particular, need to be prepared for unforeseen events that could affect their operations. This includes having readily available contingency plans for dealing with such situations, ensuring access to alternative systems in case of a major outage, and being transparent with passengers about the situation and their rights.

For passengers, this incident underscores the importance of maintaining records of any expenses incurred due to delays or cancellations, such as lodging and meals, for potential compensation. It also signifies the importance of understanding airline policies and their specific protocols for handling disruptions.

While the full impact of the global IT outage on the aviation industry is still unfolding, it has highlighted the need for greater flexibility, preparedness, and clear communication across the board.

Article Reference

Sarah Thompson
Sarah Thompson
Sarah Thompson is a seasoned journalist with over a decade of experience in breaking news and current affairs.

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