Relief for airline passengers as SC ask airlines to refund full tickets booked for flying during shutdown

KEY STORY

• In a relief for air passengers, the Supreme Court has asked airlines to not deduct any charges for flights which were cancelled during the lockdown. Based on the airfare paid, passengers, can reschedule their travel till March 31, 2021; or avail a full refund from airlines with monthly interest from the date to cancellation of the flight.

• This means that if a passenger had booked a ticket during the lockdown period for domestic or international travel from 25th March to 24th May, he/she is entitled to receive full airfare refund within 3 weeks of cancellation of the flight.

• Hearing a batch of petitions seeking a full refund of airfare for flights cancelled due to the lockdown, the top court accepted the refund scheme suggested by the Directorate General of Civil Aviation (DGCA).

• Airlines will have to try and refund all amount collected from passengers within 15 days. In case of financial distress, airlines can provide a credit shell equal to the collected airfare. Passengers can reschedule their travel using this credit shell.

• If passengers don’t reschedule their flights by March 31, airlines will have to refund them the entire amount with interest. Passengers are entitled to get 0.5% monthly interest on paid airfare from the date of the cancelled flight to June 30, 2020; and 0.75% monthly interest from June 30, 2020, to March 31, 2021.

• If tickets were booked during the lockdown period through a travel agent,  for travel within the lockdown period, a full refund is to be given by airlines to agents, which should be immediately passed on to the passengers.

• Refund rules for passengers booking tickets for travel after 24th May will be governed by provisions of Civil Aviation Requirements (CAR).

•  Petitioners Pravasi Legal Cell and Air Passengers Association of India sought an immediate and full refund of airfares, airlines cited their financial condition to allow the transfer of paid airfare into a credit shell for future use.

CONCLUSION

• The court has asked the Ministry of civil aviation to issue compliance notification in the matter.

• The lockdown, imposed on March 25, banned domestic and international travel in the country. The domestic flight services in India restarted on May 25 in a limited phase.

• If the tickets are booked for international travel on a foreign carrier and the booking is ex-India during the lockdown period for travel within the lockdown period, full refund shall be given by the airlines and said amount shall be passed on immediately by the agent to the passengers, wherever such tickets are booked through agents. In all other cases airline shall refund the collected amount to the passenger within a period of three weeks.