Synopsis: “Those who have purchased tickets through travel agents can collect the refund amount from them once the money is credited back to their account”, the court said.
On Thursday, the Supreme Court ordered airlines to reimburse passengers who had to cancel flight tickets booked during a two-month national lockdown. A three-judge bench, headed by Justice Ashok Bhushan, said that airlines must give refunds within 15 days of the order for the cancellation of bookings after the lockdown period. If the carriers are in financial difficulty, the court further added that they should provide the flyers with a credit which can be repaid until 31 March 2021.
For bookings made for both domestic and international tickets during the period, the order of the Apex court will be applicable.
The following directions have been given by the Court:
(1) If a passenger has booked a flight ticket during the lockdown period (25 March to 24 May) for travel and the airline has obtained payment for the booking of an air ticket during the same period, the airline shall refund the full amount obtained for both domestic and international air travel and the refund requested by the passenger against the cancellation of that booking. The refund shall be made within three weeks of the cancellation date, said the order.
(2) Where tickets have been booked during the lockdown period by a travel agent for travel during the lockdown period, the airlines shall immediately pay the full refund in all such situations. Upon such reimbursement, the agent shall immediately assign the sum to the passengers.
(3) If, due to financial difficulty, any airline is unable to do so, the credit shell, equal to the amount of the fare collected, shall be granted on account of the passenger when the reservation is made either directly by the passenger or through the travel agent in order to consume the same amount on or before 31 March 2021. It is open to the passenger either to use such a credit shell on any route of his choice by 31 March 2021, or to move the credit shell to any individual, including the travel agent through whom he or she has booked the ticket, and the airlines will honour such a move.
(4) By 31 March 2021, the credit shell given on behalf of the passenger can be used, the bench said, adding that the airline concerned shall honour such a transfer by establishing a system to facilitate it. The court also made it clear that the credit shell can be used for certain purposes by the person concerned from whom the ticket is purchased.
In cases where tickets are booked through an agent in the form of a credit shell given on behalf of the passenger not used by 31 March 2021, the refund of the collected fare shall be made to the same account from which the airline has earned the balance of the account.
5) In all cases where a credit shell is issued, there shall be an incentive to compensate the passenger from the date of cancellation until 30 June 2020, in which case it shall be increased by 0.5% of the face value of the ticket for each month or part thereof between the date of cancellation and 30 June 2020. Thereafter, the value of the credit shell shall be increased by 0.75% of the face value for each month or part thereof between the date of cancellation and 30 June 2020.
6) The Bench claimed that the terms of the Civil Aviation Criteria (CAR) shall regulate the reimbursement of fares to passengers covered by this category who have booked tickets at any time except for travel after 24 May.
7) In the case of international travel, even if the tickets have been booked on an Indian carrier, the immediate refund shall be made if the tickets have been booked during the lockdown period for travel.
(8) If the tickets are booked on a foreign carrier for international travel and the reservation is made during the lockdown period for travel, the airlines shall provide the full refund and the amount shall be immediately passed on to the passengers by the agent, wherever such tickets are booked through them.
9) The court has ordered that the Ministry of Civil Aviation shall issue a notice of compliance in this case.
The order, therefore, came on a batch of petitions seeking the refund of airfare to passengers whose flights were cancelled due to the COVID-19 lockdown.