Centre Proposes Full Refund on Airline Tickets Booked During Lockdown within 15 Days

SpiceJet Airbus A330. Image used for illustration solely. (Photo: SpiceJet)

The full refund has been proposed for tickets booked through the lockdown on home, worldwide and overseas airways.

  • IANS
  • Last Updated: September 7, 2020, 6:58 PM IST


The Centre has proposed {that a} full refund ought to be given by the airways inside 15 days for tickets booked through the lockdown, and if any airline is in monetary misery then a credit score shell ought to be supplied as much as March 31, 2021, on any route of passenger’s alternative. The full refund has been proposed for tickets booked through the lockdown on home, worldwide and overseas airways.

In an affidavit within the Supreme Court, O.Okay. Gupta, Director, Directorate General of Civil Aviation, mentioned for the home airways if the tickets had been booked immediately with the airline or by way of an agent, through the first lockdown interval, – March 25 – April 14 – for the journeys to be undertaken in each first and second lockdown interval, March 25 – May 3 – in all such circumstances, a full refund shall be given by the airways instantly.

“For all other cases, the airlines shall make all endeavours to refund the collected amount to the passenger within 15 days. If on account of financial distress, if the airlines are not able to do so they shall provide a credit shell equal to the amount of fare collected. This credit shell shall be issued in the name of the passenger who has booked the ticket. The passenger shall be able to consume the credit shell up to March 31, 2021, on any route of his choice”, mentioned the affidavit.

The Centre mentioned there shall be an incentive mechanism to compensate the passenger if there’s a delay in consuming the credit score shell – from the date of cancellation as much as June 30, 2020, the worth of credit score shell shall be enhanced by 0.5 per cent of the face worth (the quantity of fare collected) for each month or half thereof between the date of cancellation and 30th June 2020.

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“Thereafter, the value of the credit shell shall be enhanced by 0.75 per cent of the face value per month, up to March 2021. The credit shell shall be transferable. The passenger can transfer the credit shell to any person, and the airlines shall honour such a transfer. The airlines shall devise a mechanism to facilitate such a transfer. By the end of March 2021, the airline shall refund cash to the holder of the credit shell”, mentioned the affidavit.

The Centre mentioned this answer is workable, because it balances the curiosity of each the passengers in addition to airways, and urged the highest court docket to cross an acceptable order for its implementation.

Advocate Jose Abraham, representing petitioner Pravasi Legal Cell, mentioned: “Petitioner happily welcomes the stand of the central government directing full refund for all tickets (domestic, international and foreign carriers). Government approach is very balanced, as even the time for credit shell is extended up to March 31, 2021, and passengers can use it for ticket booking and unutilised credit shells will get the full refund with slight interest and it is really a welcome step.”

On September 1, Solicitor General Tushar Mehta submitted earlier than a bench of Justices Ashok Bhushan, R Subhash Reddy and M R Shah, {that a} assembly has been convened and a few answer has already been arrived at and sought time to carry on report such materials. The prime court docket had given per week to file an affidavit.

The petitioner had moved the highest court docket highlighting the motion of non-refund by airways of the complete quantity collected for tickets as a result of cancellation is “arbitrary and in violation of the Civil Aviation Requirement issued by the Directorate General of Civil Aviation.”

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