07/10/2020
The issue of refunds by Airlines has been decided by the Hon'ble Supreme Court [Writ Petition (Civil) Diary No. 10966/2020 and other connected matters]. The directions are stated in para 19 of the judgment. Hereinafter, is the crux of the same.
1. If a ticket is booked by a passenger during lockdowns (25th March 2020 to 24th May 2020)- domestic and Intl. - for travel during the same period and refund sought against the cancellation - airline shall refund full amount without any cancellation charges. Such refund to be made within 3 weeks (if not already).
2. If tickets booked during lockdowns for travel during lockdowns through a travel agent, full refund to be made by airlines immediately. On refunds being made, amount to be immediately passed on by the agent to the passenger.
3. For tickets booked anytime but for travel after 24th May 2020 - refunds to be initiated as per the provisions of Civil Aviation Requirements (CAR). [Relevant provisions are as follows a. In case of credit card payments, refund to be made by airlines within 7 days of cancellation to the account of the credit card holder. b. In case of cash transactions, refund shall be made immediately by the airlines office from where ticket was purchased. c. For purchase through travel agents / portals, airlines to ensure refund process is completed within 30 days. (For agents being airlines' representatives). f. Option of holding refund amount in credit shell by airlines shall be the prerogative of the passenger and not a default practice.]
4. For international travel and tickets booked on Indian Carrier and booking being ex-India (out of/ from India), if tickets have been booked during lockdown for travel during lockdown, immediate refund.
5. For international travel on a foregin carrier and the booking being ex-India, during the lockdown for travel during the lockdown, full refund by airlines and agents to pass on the same to passengers (wherever applicable) immediately. In cases of direct passenger bookings, refund in this category to be made within 3 weeks.
6. *Crucial* In all other cases, airlines to make endeavours to refund the amount within 15 days from today i.e. 01.10.2020. If the airlines owing to financial distress (most likely to affect every airlines) are unable to do so, they shall provide credit shell (form of a credit note) equal to the amount of fare collected, in the name of the passenger when booking is done directly by him or through travel agent, to be consumed on or before 31.03.2021, on any route of his choice. Passenger can also transfer the credit shell to any person including the travel agent through whom the tickets were booked. (Airlines are bound to honour such transfer.)
6.1 Credit shell to be issued in the name of the passenger which shall be transferable and can be utilised upto 31.03.2021. (Airlines have been directed to facilitate such transfers). Such credit shells can be utilised by the concerned agent through whom the ticket is booked, for third party use. Even if credit shell is transferred to a third party, same is to be utilised only through the agent who has booked the ticket at first instance.
7. In cases where tickets booked through agents, credit shell as issued in the name of the passenger, which is not utilised by 31.03.2021, refund of fare collected shall be made to the same account from which amount was received by the airlines.
8. In cases where credit shell is issued, there shall be an incentive to compensate the passenger by enhancing the credit shell by 0.5% of the face value (amount of fare collected), for every month or part thereof, from date of cancellation upto 30.06.20. Thereafter, value of credit shell shall be enhanced by 0.75% of the face value upto 31.03.2021.
