For all other cases, the airlines will do their best to refund the amount charged to the passenger within 15 days, the Director General of Civil Aviation said in an affidavit file in the superior court.
“If the tickets were booked during the first blocking period, that is, from March 25 to April 14, 2020, for the trips that will be made in the first and second blocking period, that is, from March 25 to May 3, 2020, in all those cases, airlines will grant a full refund immediately (this is required in the OM of the MoCA dated April 16, 2020, as airlines were not supposed to book such tickets), ”he said.
The DGCA said that after several rounds of deliberations among stakeholders, including airlines, they have come up with a viable solution proposal taking into account the interests of both. passengers as well as companies.
On June 12, the high court, while listening to a PIL presented by the NGO ‘Pravasi Legal Cell’, had asked the Center, the DGCA and the airlines to discuss and develop modalities for the full refund of tickets for domestic flights and internationals that were canceled. after the Covid-19 crash.
The aviation regulator in its affidavit said that if airlines cannot refund the amount due to financial problems, they will need to provide a credit shell equal to the amount of the fare charged and this will be issued in the name of the passenger who has booked the ticket. for domestic travel directly or through an agent, including online platforms.
He said that the passenger will be able to consume the credit shell until March 31, 2021 on any route of their choice and if the passenger wants to buy a ticket of value higher than the credit shell, then they can use cash to recharge it. .
“If he wants to buy a ticket with a value less than the credit deposit, he can do so and the amount of the credit deposit balance will be available to him,” he said, adding that there will be an incentive mechanism to compensate the passenger if there is a delay in the consumption of the credit shell.
It said: “From the date of cancellation of the ticket until June 30, 2020, the value of the credit shell will increase by 0.5 percent of the face value (the amount of the fare charged) for each month or part of it between the cancellation date and June 30, 2020. Thereafter, the value of the credit shell will increase by 0.75 percent of the face value per month, until March 2021 ”.
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The regulator also proposed that the credit shell be transferable and to anyone, and the airlines will respect such transfer.
“The airlines will design a mechanism to facilitate such a transfer,” he said, adding that by the end of March 2021, the airlines will reimburse cash to the holder of the credit shell.
The DGCA said that the airlines will also reimburse the full amount in case of travelers that have expired since then to the account of the passenger or his representative.
Similarly, the DGCA made a proposal for ticket reimbursement for passengers who have booked tickets for international travel through an Indian or foreign airline during the blackout period.
The aviation regulator said that the existing legal regime governed by the Civil Aviation Requirements (CAR) recognizes the rights of air passengers to request reimbursement for their air tickets.
In addition, he said that during the lockdown travel restrictions, some passengers reported that airlines have booked tickets during the lockdown and are not reimbursing the fares.
“It is alleged that to address this peculiar situation, the Ministry of Civil Aviation (MoCA) issued an Order dated April 16, 2020 that establishes the reimbursement of the fares of those tickets that were reserved during the blocking period, that is, from March 25 to April 14, so that the trips are made both in the first and second confinement, which is from March 25 to May 3, 2020, ”said the DGCA.
Referring to the discussions held by representatives of the airlines, the DGCA said that they have presented that due to the cancellation of flights / total suspension of operations due to the Covid-19 pandemic, the airlines have run out of liquidity or are facing a crisis acute liquidity.
The regulator said that considering the concerns highlighted by the airlines, any enforcement action initiated by the DGCA, for violation of the CAR provisions, may result in the reduction / suspension of the approved schedule of the airline that is already operating at capacity. limited.
On June 12, the high court had asked the Center to rule on the issue and seek ways to obtain a full refund.
The NGO’s plea had prompted the court to declare the airlines’ alleged action not to refund the full value of the canceled air tickets as a violation of the civil aviation requirement issued by the authority.
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