Surge in consumer damages related to air passenger service 
- Frequent damages include excessive penalty or refusal to a refund on contract cancellation

 Rising demand for overseas trips also grows consumer damages due to air passenger/ transportation service, requiring special caution.  

 The Korea Consumer Agency conducted an analysis on consumer damage related to air passenger/ transportation service reported to the Korea Consumer Agency for the recent three years (2010 ~2012) and found that the consumer damage in question increased by about 70% on average every year from 141 cases, 254, and 396 in 2010, 2011, and 2012, respectively.

                                                                                  (Unit: cases, Source: KCA)

 The Agency analyzed the type of 396 damage cases reported to the KCA in 2012 alone and found the following:

 ‘Excessive penalty or refusal to a refund on contract cancellation of airline tickets’ was the most frequently blamed with 37.6% (149 cases), followed by ‘Delayed or cancelled transportation and flights (36.9%, 146 cases)’ and ‘Missed flight due to insufficient information provision (11.4%, 45 cases)’.  

 According to the study, although more and more consumers purchase air tickets via the Internet, airlines reject refund by arguing regulations of their own terms and policies. Or, it is difficult for consumers to get redress, as foreign airlines often do not have their branch office in place. Statistics showed that, out of the 396 damage cases in 2012, consumers of 52.6% (208 cases) purchased tickets via e-commerce including social commerce.  

 Based on the findings, the Agency asked consumers to make efforts to prevent the relevant consumer damages by double checking contents of a contract such as penalty on cancellation at time of purchasing air tickets (especially purchased online), collecting sufficient data such as pictures to prove damages such as schedule cancellation or delay and baggage damaged or lost (especially when using a foreign airline). 

 The KCA shall work in conjunction with the Korea Fair Trade Commission to improve terms of airlines requiring ‘no-refund policy’. Also, it is going to conclude an MOU with the Ministry of Land, Transport and Maritime Affairs on cooperation in consumer damage prevention and continue to do an analysis on consumer damage in using air passenger/ transportation services based on a MOU and notify the results to the Ministry.