I wish we could get some real legal opinion on this one, which I think is very interesting. Surely for any business to hold on to money which does not belong to it is nothing but theft.
The money belongs either to the passenger or the inland revenue, but not the airline. So, charging an administrative charge greater than the refund due must surely be theft... In those situations where money is not refunded due to punative charges, is it legal for the airline to retain the money (as they know it does not belong to them)?
Even further, under accounting practices, is it indicated as income for the airline. If it were indicated under company accounts then perhaps the Inland revenue could retrospectively reclaim any money not returnd to passengers, as it does not belong to the airlines.
Any full legal opinions available??
From a moral standpoint, is is not very good to retain customers money when it should be returned.