SC directs Mumbai-based consumer body, airlines to file affidavits on refunds on tickets booked during Covid-19 lockdown

The Supreme Court (SC) on Wednesday directed consumer rights body Mumbai Grahak Panchayat (MGP), party to the plea, to file an affidavit on suggested amendments

The Supreme Court (SC) on Wednesday directed consumer rights body Mumbai Grahak Panchayat (MGP), party to the plea, to file an affidavit on suggested amendments to the aviation regulator’s affidavit on refunds for air tickets booked during the Covid-19 lockdown.

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Last week, the Directorate General of Civil Aviation (DGCA), in its affidavit to the Apex court stated that all airlines will refund the amount for tickets that were booked in the first and second lockdown period. It had, however, said that a financially unstable airline can offer credit shells to passengers.

In Wednesday’s hearing, SC also asked airlines to reply to DGCA’s affidavit on refund to passengers booked to fly during the first two lockdowns.

According to MGP, senior citizens should not be asked to use credit shells, and airlines should not ask passengers to pay the fare difference. Instead, they should be allowed to fly on the original ticket price until March 2021. A credit shell is an open ticket, issued when an airline holds on to the booking amount in the form of credit.

“Spice Jet and Indigo are more or less comfortable but Go Air was not happy with the DGCA affidavit. MGP wants some changes in the affidavit too. Hence, all stakeholders who have anything to say on the government proposal are asked to file their affidavits in one week,” said advocate Shirish Deshpande, chairman, MGP.

The next hearing is scheduled for September 23. SC has asked all the airlines as well as MGP to submit their affidavits by September 16.

“On the whole, the proposal of the civil aviation ministry is welcomed by us, as it tries to harmonise and balance the interest of both passengers and the airlines. There is, however, a need for further relief. In the present situation, senior citizens are advised not to travel and hence it will be in consonance with government policy to direct airlines to refund the ticket amounts to senior citizens forthwith. There’s also a need to protect these passengers against the possible fare hike and they should be allowed to travel till March 31 on the same fare,” said Deshpande.

DGCA, in its affidavit to the SC, stated that tickets booked for domestic and international carriers between March 25 and May 3 will be fully refunded within 15 days. “If on account of financial distress, if the airlines are not able to do so, they shall provide a credit shell equal to the amount of fare collected. This credit shell shall be issued in the name of the passenger who has booked the ticket,” it added.

The DGCA affidavit stated that passengers will be able to use the credit shell up to March 31, 2021, and change the flight sector. This means that a passenger booked on a Mumbai-Indore flight can change his/ her sector and fly to any other destination until March 2021.

An order was issued by SC on June 13 asking private airlines and the Ministry of Civil Aviation (MoCA) to find a way to refund the airfare of passengers whose flights were cancelled during the lockdown. It was then the meetings were held with all the stakeholders in July and it was decided that tickets booked directly by passengers during lockdown 1 and 2 will be fully refunded.

Questioning DGCAs affidavit, a former DGCA official said, “Which airline is doing financially well with this pandemic? Why will an airline provide a refund when they can state that they are currently financially unstable and hence, cannot provide a refund?”