Refunds for cancelled air tickets: SC comes to the rescue of flyers, asks airlines to allow passengers to use credit shells for 2 years

By: |
June 12, 2020 2:26 PM

There was a lot of confusion over the time period making someone eligible for the refund, which created huge disappointment among flyers.

coronavirus, coronavirus pandemic, coronavirus lockdown, aviation sector during coronavirus, flyers refund during coronavirus, SC judgement on flyers refund, refund to flyers for tickets during coronavirus, covid-19Due to the pandemic, airlines globally are going through tough times.

In a partial relief to flyers seeking full funds from airlines for their cancelled tickets during the lockdown from March 25 to June 1, aimed at containing the spread of Coronavirus in the country, the Supreme Court on Friday suggested airlines to allow flyers use their credit shell, issued for their cancelled air tickets, for a period of two years.

“Why should a credit shell being issued by the airlines be limited to a short period or for the same route?” the SC asked. The bench of Justices Ashok Bhushan, S K Kaul and M R Shah, while hearing the plea, also suggested allowing passengers to use the credit shells for any route they want.

For the cancelled tickets, airlines had earlier offered credit shells to customers that can be used by the same passenger within one year for the same route. There was a lot of confusion over the time period making someone eligible for the refund, which created huge disappointment among flyers.

The apex court asked the Centre to take a stand on the issue and discuss with airlines and work out modalities for full refunds. The Supreme Court will further hear the plea after three weeks.

Contesting their case, low-cost carrier SpiceJet said: “Nowhere in the world airlines are issuing full refunds”, adding “About 49%” of our flying cost is fixed and “there is zero revenue to the airlines.”

Due to the Covid-19-induced lockdown, airlines across the world are going through tough times. Even after the easing of lockdown, demand is way below the pre-Covid period. The airline urged the Supreme Court to consider them as “parties” too in the hearing.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, Check out latest IPO News, Best Performing IPOs, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1Zojila tunnel important for national security, development & tourism of Jammu and Kashmir, Ladakh: Union Minister Anurag Singh Thakur
2Maharashtra govt to promote monsoon tourism in Konkan, develop state as cinema hub: Aaditya Thackeray
3Maldives emerges as a popular family destination, gears up for busy season