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Austrian Airlines is to offer customers refunds on cash cards instead of cash.

Under a new EU directive airlines must hold a certain amount of cash in airport and sales offices to refund passengers or give compensation payments when a flight is cancelled or overbooked, but instead of cash, Austrian will provide cards loaded with sums of up to 1,000 (£690).

After passengers have been given a PIN, the cards can then be used for free at cash dispensers to retrieve the money owed at any time over the following six months.

Austrian chief commercial officer Dr Josef Burger said: 'With the implementation of the Austrian Prepaid Card we are taking on a pioneering role in the international airline sector.

'We see this project as an opportunity to demonstrate the highest possible standards of professionalism and offer customer friendly solutions in the difficult situation, when flight irregularities occur.'

A pilot project is to be established in Vienna for a year, before the scheme is extended to other airports around the world. Other airlines have also expressed an interest in making use of the cards.


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