Airlines on verge of collapse, may shut if situation doesn’t improve: GoAir to SC – Times Now

New Delhi: A day after aviation regulator, Directorate General of Civil Aviation (DGCA), informed the Supreme Court (SC) that passengers who booked tickets during lockdown were eligible for refunds, the government recommended that airlines pay 0.5% interest for delayed refunds. 

While both Vistara and AirAsia opposed the levy of interest stating that many of their customers prefer credit shell, country’s largest airline IndiGo said it refunded the tickets for the lockdown period in full. 

The government also said it is open to considering the interest of any particular segment of passengers if adversely affected.

Meanwhile, GoAir pleaded with the apex court that many airlines were on the brink of collapse and might shut down if If the situation doesn’t improve.

SC has deferred the hearing on airlines’ fare refund case for September 25.

The aviation watchdog clarified on Tuesday that in case tickets were booked prior to the lockdown upto May 24, the refunds will be given under the credit shell and incentive scheme. As per the central government’s incentive scheme introduced earlier, 0.5% interest will accrue on the original fare lying in the credit shell from the date of cancellation of the flight till June 30, 2020. Beyond this period, the passenger can avail 0.75 per cent interest every month till March 31, 2021.

A credit shell is a credit note that can be used for a future booking, for the same passenger for travel in next seven months to one year.  

The DGCA in the affidavit clarified that the refunds were broadly divided into three categories. Firstly, those who bought tickets for travel upto May 24, 2020 (as domestic flights began in a calibrated manner from May 25, 2020). Refunds for such passengers would be under the credit shell and incentive scheme.   

In the second category, passengers who booked tickets during the lockdown for travel during the lockdown are eligible for immediate refunds of the airfare as airlines were not supposed to take bookings during this period.   

Thirdly, those passengers who booked tickets anytime but for travel after May 24, 2020, shall be refunded based on CAR provisions.