KLM fined 40.100 euros

The Inspectorate for the Environment and Transport (ILT, Inspectie Leefomgeving en Transport) imposed a fine of 40.100 euros on KLM for not refunding canceled tickets to passengers. In particular, funds for canceled flights of the bankrupt travel company D-reizen were not reimbursed. Moreover, the inspectorate threatened KLM with a fine of up to 500.000 euros.

Violation of the rights of passengers

Under the European Passenger Rights Regulation, travelers are entitled to a rebooking or refund if an airline cancels a flight. This also applies to flights booked through an intermediary.

In this case, the intermediary was the travel agency D-reizen, which was declared bankrupt in April last year due to the coronavirus crisis. The non-refund issue affected passengers who booked tickets through D-reizen between 2019 and 2021.

According to representatives of ILT, the airline does not respect the rights of passengers:

• Passengers never actually receive their ticket money back within seven days.
• The choice between a refund and another flight is not always offered.
• The airline does not provide enough information about the rights of passengers.

In addition to KLM, two other airlines received fines - Cathay Pacific Airways (€11.800) and Singapore Airlines (€22.400).

Penalty for late or indirect repayment of the cost of canceled air tickets

KLM will appeal the fine. KLM officials say the airline had already refunded the cost of D-Reizen tickets months before the travel agency went bankrupt, thus fulfilling its legal obligations. However, the travel agency went bankrupt even before the money was transferred to the passengers.

ILT considers such indirect reimbursement of the cost of canceled air tickets as an unacceptable practice. The KLM airline must set up their site for this and is no longer allowed to refer to the travel agent. KLM has one month to complete this requirement. Every time ILT finds that KLM is not following the rules, the company will be fined. In total, the amount of fines can reach 500.000 euros.