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Thursday, 01 October, 2020, 15 : 00 PM [IST]

SC accepts DGCA’s proposal to issue ticket refunds to agents for tickets booked through them

The Supreme Court on Thursday accepted recommendations made by the Directorate General of Civil Aviation (DGCA) regarding full refund of airfare to passengers for tickets booked during the Covid-19 lockdown. In case, airlines are not in a position to refund the tickets, they should issue credit shell where 0.5% monthly interest will accrue till it is used, the top court said.

If a passenger has booked a ticket during March 25 to May 24 for travel during the lockdown period and seeks refund, the airline shall refund the full amount collected without any cancellation charges, the court said. The refund shall be made within a period of three weeks from the date of cancellation.

If tickets have been booked through a travel agent, full refund shall be given by the airlines and the amount shall be passed on immediately by the agent to the passengers.

Passengers who booked tickets at any period of time but for travel after May24, refund of fares shall be governed by the provisions of Civil Aviation Requirements (CAR).

Even for international travel, when tickets have been booked on an Indian carrier and the booking is ex-India, immediate refund shall be made.

"In all other cases airline shall refund the collected amount to the passenger within a period of three weeks. In all other cases, the airlines shall make all endeavours to refund the collected amount to the passenger within 15 days from today," the court said.

In case of credit shell, it is open to the passenger to utilise such facility up to March 31 on any route of his choice or transfer it to any person including the travel agent through whom he/she has booked the ticket and the airlines shall honour such a transfer.

The credit shell can be utilised by the concerned agent through whom the ticket is booked for third party use. Even in cases where credit shell is transferred to third party, same is to be utilised only through the agent who has booked the ticket at the first instance.

“In all cases where credit shell is issued there shall be an incentive to compensate the passenger from the date of cancellation up to 30th June, 2020 in which event 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," the order said.

Thereafter, the value of the credit shell shall be enhanced by 0.75% of the face value per month up to 31 March, it added. (Source: Mint)

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