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European airlines cutting fares to woo back passengers

With the coronavirus crisis putting a chill on travel, European airlines are reducing fares to attract passengers and fill the planes that are still flying.

European airlines cutting fares to woo back passengers
Photo: AFP

Travel restrictions adopted by many countries to stem the spread of the disease have clobbered airlines, bringing air traffic to a near halt in the spring. And while traffic picked up during the summer, it is now falling off again.

According to Eurocontrol, which coordinates air traffic in Europe, traffic has been slowing over the past couple of weeks, and is now 54 percent below its comparable level last year.

A European airline trade association has put August traffic even lower, at just 30 percent of 2019 levels.

Eurocontrol is now more pessimistic about a recovery for the sector.

In the spring it had expected traffic to be 30 percent below 2019 levels in October, but it now sees a 57-percent drop.

While the pandemic has left airlines starved for cash, they have begun to cut fare prices.

According to ForwardKeys, a company which analyses the tourism market, airlines trimmed fares from Britain, France, Germany and the Netherlands to destinations in southern Europe by 15 percent in August compared with the same period last year.

In a study released Thursday it found that prices on some routes were down by more than one third.

'Entice travellers'

“You have to entice travellers to return to flying and price is a factor,” said Reginald Otten, deputy managing director for France at budget airline easyJet.

He said the airline had managed to reopen some routes during the summer and the planes it flew were nearly full.

“But we are nevertheless around 30 percent of capacity, which is a very, very low figure, and the summer is the most important, most popular (time) for people to travel,” he told AFP.

Lower prices also stimulate traffic, according to Eddie Wilson, head of Ryanair DAC, one of the two firms which operate flights under the Ryanair brand.

Ryanair, which has used a low-cost model to become one of Europe's biggest airlines, this week launched a brief buy-one-get-one-free promotion.

“At some stage you can't sit there and look out of the window and hope that things will be alright and wait for the politicians to do something,” he said.

Beyond cutting prices, airlines can and are focusing on their most profitable routes.

But the reimposition of travel restrictions and tighter quarantine and testing measures could quickly undo their planning and efforts.

European airlines earlier this month urged national capitals to coordinate measures to limit the spread of the virus, saying the current patchwork of restrictions is hobbling a return to regular travel around the EU.

Airlines are responding to the drop in demand for travel “with the tools they have in hand: reducing capacity and promotional offers, but they have no control over the evolution of the pandemic and policies on restricting travel,” said Oliver Ponti, vice president of ForwardKeys.

“The effect of low prices will thus be limited, especially as consumers remain worried about their plans being disrupted and rapid reimbursement of their tickets in case of cancellation,” he added.

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TRAIN TRAVEL

The new compensation rules for train delays and cancellations with Spain’s Renfe

Renfe, Spain’s national rail company, has changed the way in which you can get compensation for delays, as well as the amount of refund you are entitled to.

The new compensation rules for train delays and cancellations with Spain's Renfe

This changes will apply to Ave, Avlo, Alvia, Euromed and Intercity trains on journeys from July 1st.

This decision comes after a meeting of the company’s Board of Directors who wanted to introduce a similar commitment to punctuality as other competing companies such as Ouigo and Iryo.

But this is not necessarily good news, because now customers will only receive compensation when the delay times are greater and the amounts will be less. 

For example, up until now if an AVE train was delayed 30 minutes you would receive a 100 percent refund, now it’s only if the delay exceeds 90 minutes, a whole hour and a half delay.

What are the new refund amounts and how long do the delays have to be?

Here’s a full breakdown of the new amounts:

Until now, 50 percent was refunded for delays of more than 15 minutes and 100 percent if they were more than 30 minutes.

Now the refunds will be 50 percent for delays of more than 60 minutes and 100 percent for those that exceed 90 minutes.

This means for example that if your train is now delayed up to 45 minutes, you won’t receive any compensation from Renfe at all.

How will the new refund system work?

You will still be able to get your refund in cash or on your card, as always, but there are now other options too including greater refund amounts, depending on what you choose. These are:

  • A refund of 200 percent of the amount depending on the delay time via a new points system managed through the Más Renfe card ‘Renfecitos’. 
  • Compensation as a voucher to buy another ticket. In this case, the refund will be 150 percent of the amount for both delays of 60 minutes and those greater than 90 minutes.

If you choose the refund of the amount on your bank card, you can request it at renfe.com or at the station ticket offices and travel agencies.

If you choose the refund voucher, you can only get it online. In this case you have a maximum of three months from the date of travel to request compensation and a maximum of six months from when you have obtained the discount code to purchase the new ticket.

If you choose to be refunded with Renfe Points, you must also do this online. This option is only available for tickets purchased with a credit/debit card or cash. The points will be credited directly to your account and you have a maximum of three months from the date of travel to request compensation and a maximum of three years to use the points.

To claim delays on Avlo trains, you can do this through the automatic compensation system at www.avlorenfe.com or www.renfe.com. Compensation is paid through the same payment method as you used to purchase your ticket. You will have a maximum period of three months from the date of the trip to request it.

For compensation for delays on integrated tickets, you can apply for compensation at points of sale and customer service at the stations.

In 2023 Renfe paid out €42 million to its customers in compensation for delays. An amount that could have risen to almost €70 million if all affected users had requested compensation.

With this change, Renfe seeks to reduce the amount.

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