Government directs airlines to refund full fares for bookings during lockdown

NEW DELHI : Airlines will now have to refund full flight ticket costs, without charging cancelation charges, to passengers who booked tickets during the lockdown period between 25 March and 3 May, the ministry of civil aviation said in a circular on Thursday. "If a passenger has booked a ticket during the first lockdown period (from 25 March to 14 April), and the airline has received payment for booking of the air ticket during the first lockdown period for travel during the same period, for both domestic and international air travel and refund is sought by passenger against that booking being cancelled, the airline shall refund the full amount collected without levy of cancelation charge," the circular said. Passengers, who booked for flights between 15 April and 3 May, are also eligible to get a full refund on cancellation of their tickets, the circular added. The ministry of civil aviation has directed the aviation regulator Directorate General of Civil Aviation (DGCA) to monitor airlines' compliance to the ministry's advisory. Several passengers have been forced to reschedule their flight tickets due to extension of the lockdown till 3 May. Senior civil aviation ministry officials on Wednesday met airline officials, including chief executive officers, to discuss advance ticket bookings during the lockdown period. As things stand, all international and domestic scheduled airline operations remain suspended till 3 May, the ministry of civil aviation said earlier this week after Prime Minister Narendra Modi announced the extension of a country-wide lockdown, which has been imposed since 24 March to contain the spread of covid-19. Airlines had, however, started to take advance bookings for travel after 14 April, the deadline of the initial lockdown period, which was extended earlier this week. Following this, airlines deferred restarting operations till 4 May. "Some carriers have opened the full schedule for sale from 4 May. Even if flights resume from that date, which is not certain, it is highly unlikely that full operations will resume from Day 1. Further flight cancellations are almost inevitable, resulting in more pax funds in credit," aviation consultancy Capa India said in a twitter post on 14 April. "Passengers that have purchased tickets for the period from 15 April to 3 May will once again only be offered credit for future travel, rather than a (full) refund," it added. The aviation sector is badly affected as the revenue loss spread across airlines, airports and retail is estimated to be $1-1.5 billion per month of lockdown, according to industry estimates. Cash-strapped airlines are using advance ticket sales to keep revenues flowing. The latest decision by the government could push some airlines towards closure, said an airline official. "Indian airlines are the only ones in the world that were forced to suspend operations for 40 days. Airlines have not received any financial support from the government, and are now being forced to refund in cash rather than through credit. Indian airlines seem to be in the worst of all worlds," the person said, requesting anonymity. "The very survival of some airlines is now thrown further into doubt," the person added.