Airlines will make full refund of tickets booked between March 25 and May 3: DGCA informs SC

The Directorate General of Civil Aviation (DGCA) informed the Supreme Court on Sunday that passengers who had booked tickets in domestic and international carriers for air travel between March 25 and May 3, 2020, which was the first two phases of the nationwide lockdown in the wake of the coronavirus pandemic, will be "fully refunded".

"Non-refund of air tickets booked during lockdown and creation of involuntary credit shell by airlines is a violation of Civil Aviation Requirements and provisions of the Aircraft Rules of 1937," the DGCA told the apex court, according to reports.

India had imposed the first phase of lockdown from March 25 to April 14 to curb the spread of the novel coronavirus. The second phase of lockdown was from April 15 to May 3. All domestic and international commercial passenger flights had been suspended during the period.

For all other cases, the airlines shall make all endeavors to refund the collected amount to the passenger within 15 days, the DGCA informed the top court. Meanwhile, meetings with tourism and air travel companies are also being conducted. The companies have agreed to a "full refund", however, in case of financial distress for airlines, credit will be given to passengers who could use it for air travel till 31 March 2021 on any route of their choice, it said.

On June 12, the top court, while hearing a PIL filed by NGO 'Pravasi Legal Cell', had asked the Centre, the DGCA and the airlines to discuss and work out modalities for full refund of tickets for domestic and international flights which were cancelled following the Covid-19 lockdown.

It added, "From the date of cancellation of ticket up to June 30, 2020, the value of credit shell shall be enhanced by 0.5 per cent of the face value (the amount of fare collected) for every month or part thereof between the date of cancellation and June 30, 2020. Thereafter, the value of credit shell shall be enhanced by 0.75 per cent of the face value per month, up to March 2021."

The regulator also proposed the credit shell shall be transferable and to any person, and the airlines shall honour such a transfer. "The airlines shall devise a mechanism to facilitate such a transfer", it said, adding that by the end of March 2021, the airlines shall refund cash to the holder of the credit shell.

The DGCA said that the airlines would also refund the full amount in case of travellers who have since expired to the account of the passenger or to his representative.

(With inputs from Aneesha Mathur in New Delhi)

Source: indiatoday.in