Airlines decline refund, extends credit shell for post-lockdown bookings

After the lockdown extended till May, all private airlines which accepted bookings from April 15 onwards on their domestic network informed their customer that they are not in a position to provide a full refund and they can use the 'credit shell'.

New Delhi: Shortly after the Ministry of Civil Aviation on Tuesday announced that all domestic and international flights will remain suspended till May 3, private airlines which accepted bookings from April 15 onwards on their domestic network told to its customer that they are not in a position to provide full refund and they can use the 'credit shell'.

India’s largest low-cost carrier Indigo, on Tueday informed its customers that in support of the government measures to eradicate COVID-19, lockdown has been extended and all IndiGo flight are extended till May 3.

"We are in the process of cancelling the reservations your ticket amount is protected in the form of a credit shell in the PNR, which will be shared with you in the next 5-7 days," said the airline in a note to its customers.

"The credit shall can be utilized within one year from the issued date, for the same passenger(s). You can choose any travel date as per your convenience. To view your credit shell balance please retrieve your itinerary from 'edit booking' section on our website," said the airline.

SpiceJet also issued similar guidelines and said to make fresh bookings against the cancellations, customers can make payment using the credit shell option.

The airline said that it will resume the flights operations in a phased manner from May 4 and it will increase operating capacity over subsequent months. However, for reopening select international flights, IndiGo stated that it will totally depend on the existing international travel guidelines.

After Prime Minister Narendra Modi Tuesday announcement that the nationwide lockdown would be extended till May 3 to fight the Coronavirus pandemic, the Ministry of Civil Aviation said, "All domestic and international scheduled airlines operations shall remain suspended till 11.59 pm of 3rd May 2020."

However, this restriction does not apply to all-cargo and flights specifically approved by the DGCA.

"There were good reasons for the Lockdown to be extended till 3rd May. We can consider lifting restrictions on both domestic & international flights thereafter. I understand the problems being faced by people who need to travel & request them to bear with us," said Civil Aviation Minister Hardeep Singh Puri today.

An aviation expert said, "like Indian Railways, the Civil Aviation Ministry should also clarify on the refunds for flights cancelled during the lockdown and now it is for sure that ticket prices will go up once the flight resumes post lockdown."

Last week, Aviation consultancy CAPA had asked the government to review the sale of tickets beyond April 14-15 midnight.

On April 2, Hardeep Singh Puri had said that airlines can take domestic bookings after 14 April, unless the current lockdown, which has been implemented to contain the spread of contagious covid-19 virus, is further extended.

However, except Air India, most of the airlines had been taking bookings for dates after April 14.

The DGCA banned international flights from March 23 and the ban on domestic flights commenced from March 25.

The government so far has not released any relief package for the industry, Ajay Singh, chairman and managing director of SpiceJet today said that governments throughout the world are trying to ensure that airlines don't collapse and airlines in India need short term support from government.