Airline Refunds: SC Proposes 2-Year Credit Shell For Flights Cancelled During Lockdown

On the petition which demanded airlines to make refund for flights cancelled in the wake of nationwide lockdown enforced to curb the spread of coronavirus infection, the apex court on June 12, 2020 proposed that air carriers should offer a credit shell with 2-year validity.

The court shall again hear the matter after 3 weeks and this observation if it comes through would provide a breather to airline industry which is estimated to suffer the most due to the lockdown.

In view of the lockdown which was again and again seeing an extension, airlines at several instances reopened bookings for airline travel to only cancel it later. And accordingly, airlines were also rejigging their policy of making customer refunds.

"Nowhere in the world are airlines issuing full refunds," said SpiceJet. Also, it said airline players be allowed to find a solution to the problem in close coordination with the government and the DGCA.

Also, the airline reiterated that the honourable court should pass the judgment taking into consideration the losses which airlines globally suffered and the fixed cost of 49% which the companies have to bear with no revenues.

Nonetheless, as a personal opinion the SG said that fares should be refunded in full.

GoodReturns.in