The Supreme Court on Sunday was informed by the Directorate General of Civil Aviation (DGCA) that tickets booked by passengers in domestic and international carriers for air travel between March 25 to May 3, 2020, will be “fully refunded.”
Passengers must be paid a full refund for air tickets booked during the coronavirus lockdown.
DGCA told SC, according to reports,
“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 Centre has granted the passenger time till 31 March 2021 to use the credit shell on any route of their choice.
However, it said that in all cases the refund by the airlines has to be initiated within 15 days.
In the month of April this year, the Centre had asked airlines to refund full fares, without imposing cancellation charges, to those who booked tickets during the first lockdown from 25 March to 14 April for travel between 25 March and 3 May.
The ministry has asked the Directorate General of Civil Aviation to ensure airlines comply with its directive.
The center also said the passengers can use the credit on any route of choice and should also be able to transfer it to anyone.
Addressing to which the government told the Supreme Court that,
“The passenger can transfer the credit shell to any person, and the airlines shall honor such a transfer. The airlines shall devise a mechanism to facilitate such a transfer. By the end of March 2021, the Airlines shall refund cash to the holder of the credit shell”
The DGCA in its affidavit in the court on Saturday had stated that,
“There shall be an incentive mechanism to compensate the passenger if there is a delay in consuming the credit shell – from the date of cancellation up to 30th June 2020. The value of the 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 the credit shell shall be enhanced by 0.75% of the face value per month, up to March 2021,”
The DGCA cleared that the refund must be initiated as the airlines were not supposed to book tickets during the first lockdown period.
Scheduled international passenger flights have been suspended in India since 25 March in the wake of the novel coronavirus outbreak. Domestic flight operations were allowed to resume from 25 May, with limited capacity, to curb the virus spread.
