SC accepts DGCA scheme for refund for air tickets booked during lockdown

Satya Prakash
Tribune News Service
New Delhi, October 1

The Supreme Court on Thursday accepted the Directorate General of Civil Aviation (DGCA) scheme for refund of money for air tickets booked during the COVID-19 lockdown.

A three-judge Bench, headed by Justice Ashok Bhushan, endorsed the DGCA credit shell scheme which will be valid till March 31 and disposed of petitions on refund of air tickets booked for/during the lockdown.

The Bench said in cases where air tickets had been booked through agents, a refund will happen through them only.

It directed the Ministry of Civil Aviation to issue the necessary notification in this regard.

The verdict approving the DGCA scheme is likely to benefit thousands of air passengers whose hard-earned money remained stuck with airlines after their air tickets were cancelled due to the lockdown.

The Supreme Court on September 25 reserved its orders on a PIL seeking a full refund for air tickets booked during the lockdown, after hearing counsel for petitioner Pravasi Legal Cell, various airlines, the Centre and the Directorate of Civil Aviation.

On behalf of the Centre, Solicitor General Tushar Mehta had clarified that credit shell i.e. voucher facility can't be availed by travel agents who booked tickets during the lockdown.

Advocates representing airlines had talked about massive losses faced by them due to COVID-19 lockdown, while air travellers’ counsel had asserted that they can’t be made to suffer and their money has to be refunded.

The DGCA had earlier told the top court that full refund shall be provided by airlines immediately for tickets booked during the COVID-19 lockdown for domestic or international travel within the lockdown period.

If airlines were not able to refund on account of financial distress, they shall provide a credit shell equal to the amount of fare collected and this shall be issued in the name of the passenger who has booked the ticket for domestic travel directly or through an agent, including online platforms, the DGCA had said.

Passengers entitled to a full refund for air tickets booked during Lockdown 1 & 2 during which air travel was banned due to COVID-19 pandemic, the Centre had earlier told the Supreme Court.

“If the tickets have been booked during the first lockdown period, i.e. 25th of March, 2020 to 14th of April, 2020 for the journeys to be undertaken in both first and second lockdown period i.e. from 25th of March, 2020 to 3rd of May, 2020, in all such cases, a full refund shall be given by the airlines immediately,” the Directorate General of Civil Aviation had said regarding domestic airlines’ tickets booked directly by the passenger with airlines.

Similarly, for international travel when the ticket has been booked on an Indian carrier and the booking is ex-India, it had said, “If the tickets have been booked during the lockdown period for travel within the lockdown period, in all such cases full refund shall be given by the airlines immediately. This amount shall be passed on immediately by the Agent to the passengers, as the case may be.”

SC's directions in air tickets refund case:

1. If a passenger has booked a ticket during the lockdown period (from 25th March, 2020 to 24th May, 2020) for travel during lockdown period and the airline has received payment for booking of air ticket for travel during the same period, for both domestic and international air travel and the refund is sought by the passenger against that booking being cancelled, the airline shall refund the full amount collected without any cancellation charges. The refund shall be made within a period of three weeks from the date of cancellation.

2. If the tickets have been booked during the lockdown period through a travel agent for a travel within the lockdown period, in all such cases full refund shall be given by the airlines immediately. On such refund, the amount shall be passed on immediately by the agent to the passengers.

3. Passengers who booked tickets at any period of time but for travel after 24th May, 2020 – refund of fares to the passengers covered under this category shall be governed by the provisions of Civil Aviation Requirements (CAR).

4. Even for international travel, when the tickets have been booked on an Indian carrier and the booking is exIndia, if the tickets have been booked during the lockdown period for travel within the lockdown period, immediate refund shall be made.

5. If the tickets are booked for international travel on a foreign carrier and the booking is exIndia during the lockdown period for travel within the lockdown period, full refund shall be given by the airlines and said amount shall be passed on immediately by the agent to the passengers, wherever such tickets are booked through agents. In all other cases airline shall refund the collected amount to the passenger within a period of three weeks.

6. In all other cases, the airlines shall make all endeavours to refund the collected amount to the passenger within 15 days from today. If on account of financial distress, any airline / airlines are not able to do so, they shall provide credit shell, equal to the amount of fare collected, in the name of passenger when the booking is done either directly by the passenger or through travel agent so as to consume the same on or before 31st March, 2021. It is open to the passenger either to utilize such credit shell upto 31st March, 2021 on any route of his choice or the passenger can transfer the credit shell to any person including the travel agent through whom he /she has booked the ticket and the airlines shall honour such a transfer.

7. The credit shell issued in the name of the passenger shall be transferable which can be utilized upto 31st March, 2021 and the concerned airline shall honour such a transfer by devising a mechanism to facilitate such a transfer. It is also made clear that such credit shell can be utilized by the concerned agent through whom the ticket is booked, for third party use. It is also made clear that even in cases where credit shell is transferred to third party, same is to be utilized only through the agent who has booked the ticket at the first instance.

8. In cases where passengers have purchased the ticket through an agent, and credit shell is issued in the name of passenger, such credit shell is to be utilized only through the agent who has booked the ticket. In cases where tickets are booked through agent, credit shell as issued in the name of the passenger which is not utilized by 31st March, 2021, refund of the fare collected shall be made to the same account from which account amount was received by the airline.

9. In all cases where credit shell is issued there shall be an incentive to compensate the passenger from the date of cancellation upto 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. Thereafter the value of the credit shell shall be enhanced by 0.75% of the face value per month upto 31st March, 2021.

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