Fly540 instructed to stop bookings over complaints
By John Otini, November 17, 2022
Struggling local low-cost carrier Fly540 has found itself between a rock and hard after the government ordered them to stop advertising flight bookings.
This was after the Competition Authority of Kenya(CAK) claimed it was looking into whether the airline had engaged in unconscionable behaviour during operations or made false and misleading claims that violated the law.
In a statement released on Wednesday, Competition Authority of Kenya(CAK) stated that it had received more than 50 complaints from customers which include inaccurate and misleading information about the possibility of customers changing their flight plans, flight cancellations, and excessive delays in refunding clients.
“Fly540 is hereby directed to, with immediate effect, cease and desist from advertising flight bookings through electronic, print and social media or receiving any flight bookings from the Public or travel agents until the ongoing investigations are completed,” said the regulator.
“Fly540 has also been ordered to refund customers with outstanding ticket refund claims by 30th November, 2022.”
Customers had been on social media complaining over failure by the airline to refund them after their flights were canceled.
International Air Transport Authority (IATA) suspended the Kenyan low-cost carrier from its electronic Billing and Settlement Plan (BSP) over unpaid debts severing its links with multiple booking agents.
Stranded customers
“Me and my husband bought a ticket in your company. The flight was cancelled on September 28. We’ve got information we can rebook a flight but there were no flights for the next month! ,” said Ewelina Ozimek.
In February this year, the CEO of Fly540 airline Donald Smith Earle and a fellow investor risked losing two prime properties in Malindi that include cottages and a restaurant after the court declined to stop auctioneers from selling them over a Sh678.7 million debt.
The CAK has also been quoted saying the Fly540’s operating license expired last September and is therefore not authorised to offer services. – John Otini