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The UK’s aviation regulator has reprimanded Wizz Air over “unacceptable” handling of customer compensation claims for delayed or cancelled flights, ordering the airline to revamp the way it deals with complaints.
The Civil Aviation Authority said it had told the low-cost Hungarian carrier to review all compensation claims involving a UK flight made since last March. Any passenger who has made a claim with Wizz over the past six years can also request to have their case reopened.
The regulator cannot at present fine airlines, and has long called for tougher powers. Yet the enforcement action on Thursday was an unprecedented intervention, marking the first time it has made such an order for a carrier to review all complaints.
Paul Smith, joint-interim chief executive of the CAA, said the regulator had identified a “really unacceptable handling of claims” for compensation and a “failure to pay customers what they are owed”.
Wizz was caught up in sweeping disruption to hit airlines and airport last summer, when staff shortages led to cancellations and delays across the industry.
Handling of the disruption has snowballed into a significant reputational problem for Wizz, which was named “the UK’s worst airline” by consumer group Which? earlier this year.
The problems identified by the CAA centred on the airline’s requirement to provide alternative flights, as well as care and assistance such as covering hotel costs.
The CAA had already raised “significant concerns” with Wizz in December over a high volume of complaints and delays in paying passengers compensation. A “large number” of county court judgements against Wizz were also found to have been unpaid.
The airline has repeatedly apologised for its handling of the disruption last summer, and has invested £90mn to improve the resilience of its UK operations, such as increasing staffing levels.
Marion Geoffroy, managing director at Wizz Air UK, said in a statement that the airline faced “unprecedented operating challenges” last year and had “learned” from the experience.
“Flights were too often late or cancelled, disruption management overwhelmed our internal and external resources, and claims took too long to process and pay,” she said.
Government ministers in the UK have promised to arm the CAA with “stronger” enforcement power, including the ability to issue fines, as part of an overhaul of passengers’ rights, but the changes have yet to be implemented.
The airline engaged with the regulator and committed to introduce changes to its policies, the CAA said.
