Air tickets booked for travel during lockdown to be refunded, SC orders

A three-judge bench of the Supreme Court on Thursday said that the credit shell shall be transferable and interest will accrue on the money in the credit shell: 0.5 per cent from the date of cancellation till June 30 and thereafter 0.75 per cent till March 31, 2021.

New Delhi: Passengers and observers of the aviation sector have welcomed the Supreme Court decision requiring airlines to effectively refund travellers for flights cancelled due to COVID, but also said that there needs to be clarity on how things will go if the airline shuts its operation before 31 March 2021- the deadline set for refunds.

"...it is not clear how passengers will be compensated if an airline closes. Jet Airways and Kingfisher Airlines left passengers out of pocket to the tune of billions of dollars. To avoid such an outcome being repeated, the DGCA must ensure that there is adequate consumer protection," said aviation consultancy firm Centre for Asia Pacific Aviation (CAPA) India.

According to EaseMyTrip.com, the Supreme Court's decision is a relief for airlines, as well as passengers.

"The judgment is a move in the right direction where both airlines and customers have been taken into consideration. The moves support the airlines by giving them the required cushion till 31 March and at the same time supports passengers by ensuring interest on credit shell," said Nishant Pitti, founder of EaseMyTrip to ETV Bharat.

He said that his company had made a special arrangement with low-cost carriers, under which the airlines instead of adding refunds in Credit Shells of customers the refund amount to EaseMyTrip's airline wallet and EaseMyTrip used to refund the same amount in customer's bank account.

"We work providing flexibility through the ticket credit prior to the ruling and will comply with the decision as needed," Vistara spokesperson told ETV Bharat.

A three-judge bench of the Supreme Court on Thursday said that the credit shell shall be transferable and interest will accrue on the money in the credit shell: 0.5 per cent from the date of cancellation till June 30 and thereafter 0.75 per cent till March 31, 2021.

Notably, the DGCA had already issued a notification on April 16 ordering immediate refund for tickets booked during lockdown (March 25- April 14).