**Update: 09/05/20 @ 17:41 UTC - Correction regarding US regulation surrounding mandatory refunds.** 

This week, Frontier Airlines has been accused of unfair practices and will undergo an investigation from the US Department of Transportation. According to a letter from an Attorney General in Colorado penned yesterday, more than 100 complaints have been issued against the airline and its refund policy.

Frontier Airlines at gate
Frontier wants to service 90% of the US population within under an hour's drive. Photo: Getty Images

Frontier accused of unfair practices

The COVID-19 pandemic is unprecedented, not only for its impact on daily life. It has also required airlines to rethink their strategies around refunds and vouchers to maximize their liquidity.

However, there is a fine line to tread between fair treatment, customer satisfaction, and the needs of carriers. Since the start of the pandemic, Frontier Airlines has had more than 100 complaints filed against it for unfair treatment.

It is thought that the airline is not abiding regulations issued by the Department of Transportation (DoT) regarding refunds and is acting outside of the interests of its customers. In a letter sent to the DoT on September 1st, Attorney General Phil Weiser has urged the organization to review Frontier's behavior.

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Frontier Airlines take-off
Is Frontier following DoT regulation? Photo: Frontier Airlines

Frontier unwilling to provide refunds

Under federal law, airlines have an obligation to issue full refunds to their customers, even when situations are outside of their control. The pandemic and worldwide shutdown of the air travel industry falls into this bracket. However, Frontier Airlines is indicted as unwilling to provide refunds.

Instead, it is issuing travel vouchers. This is now standard practice across the industry; however, Frontier's travel vouchers are highly restrictive. Some customers with the airline have complained that they were given just 90 days to use their vouchers to rebook an alternative travel date.

While some customers were happy with this agreement, they were unable to book future travel due to an unresponsive website. When they called Frontier Airlines, they were disconnected before the issue was resolved, if they got through in the first place.

To remedy the issue, Frontier offered passengers the opportunity to extend their 90-day voucher. However, complaints suggest that this was not a realistic option. Furthermore, if customers did book tickets with the airline for a lower value than their initial voucher, they were not given a credit note for the remaining amount.

Frontier Airlines take-off 2
The DoT will decide whether the airline adhered to customer rights if it decides to investigate. Photo: Frontier Airlines

Weighing up these accusations, Phil Weiser penned in his letter that,

"After reviewing more than one hundred consumer complaints from consumers in Colorado and 29 other states in the past six months, my office has reason to believe Frontier violated [...] USDOT regulations by engaging in various practices that cause consumers financial and psychological harm and meet the USDOT’s criteria for being 'unfair' or 'deceptive.'"

Should Frontier offer full refunds?

Guidance from the US Department of Transportation states that passengers are entitled to a full refund with their US airline if their flight is canceled. However, if a passenger is willing to accept a travel voucher instead of a full refund, the airline is permitted to do so. However, in the first instance, the airline should always offer a full refund.

Frontier with AA aircraft
Should Frontier offer refunds? Photo: Getty Images

Therefore, Frontier Airlines should not feel compelled to give out refunds. However, how it issues travel vouchers should certainly be examined. In delicate situations like these, there is a right and wrong way to approach travel amendments and cancelations.

That said, though Frontier shouldn't feel obliged to issue refunds, financially, it should be able to. Frontier Airlines received a portion of a $25bn loan set out by the Trump Administration for the airline industry. That money was supposed to help facilitate refunds. Instead, it could be used by Frontier to pay refund penalties, which come in at up to $2,500 per offense.

Do you agree with how Frontier Airlines has handled its refunds? Do you have a personal story to tell on this issue? Let us know in the comments.