New Delhi: The Civil aviation Ministry has informed the Supreme Court that the airlines will refund the full amount of cancelled tickets if they were booked during the lockdown period for travel. In case due to financial distress if the airlines is unable to do so then they will be providing credit shell of an equal amount which shall be valid till 31st March 2021 on any route.
By the end of 31st March, the airlines will refund the cash to the holder of credit shell.
The affidavit has been filed in the top court in response to a petition which sought refund of full amount of air fares.
The credit shell will be transferable by the passenger to any person and airlines will devise a mechanism to facilitate such transfer. The credit shell amount can be used to buy tickets of lesser amount and the remaining will be available to the passenger and in case of a higher priced ticket, the passenger can give cash to top it.
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"There shall be an incentive mechanism to compensate the passenger if there is delay in consuming the credit shell from the date of cancellation upto 30th June, 2020 the value of credit shell shall be enhanced by 0.5% of the face value (the amount of fare collected) for every month or part thereof between the date of cancellation and 30th June,2020. Thereafter, the value of credit shell shall be enhanced by 0.75% of the face value per month, upto march 2021," read the affidavit.
During the earlier hearings it was argued in the court that no where in the world airlines were refunding the whole amount and as they were in distress it is not feasible for them to refund the full amounts. Solicitor General, Tushar Mehta, appearing for centre, however had opined that passengers shall be given full refund.
