New Delhi: The Supreme Court Friday asked the Union Ministry of Civil Aviation (MoCA) to call for a meeting with airline companies in order to work out the modalities of compensating passengers whose flight tickets were cancelled during the nationwide Covid-19 lockdown.
In its prima facie view, the court said airlines must work out a redressal mechanism, either through refund or credit shell that should be for a longer period and for any route.
A bench of Justices Ashok Bhushan, S.K. Kaul and M.R. Shah also ordered all carriers to respond to a petition, filed by an NGO, alleging failure of airline companies to refund the full amount collected for tickets.
The petitioner relied on an office memorandum issued by MoCA on 16 April, directing all airline operators to refund the full amount collected for tickets booked during the first phase of the lockdown (from 25 March to 14 April) for domestic and international air travel.
Senior advocate Harish Salve, appearing for SpiceJet, however, raised preliminary objection against the petition and said airline companies are under huge stress due to the lockdown.
“All airlines will be sold up in the world, not just in India,” he submitted, opposing a direction to ask carriers to refund cash to passengers.
The bench also allowed an intervention application filed by an association of travel agents, which has made a similar plea as the NGO. The association, through advocate Neera Gokhale, said the prerogative of accepting credit shells should be that of customers and airline companies cannot force it.
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‘Credit shell should be valid for at least two years’
The bench asked Solicitor General Tushar Mehta to place the central government’s stand on the NGO’s petition. Mehta agreed with the bench’s suggestion on not limiting the credit shell to the route for which the passenger had booked the ticket that got cancelled due to the lockdown.
“If some wanted to travel from Mumbai to Bangalore, then the credit shell should not restrict his or her travel just to this route,” Mehta submitted.
Justice Kaul also felt airline companies must offer a credit shell that is valid for at least two years. “As is being done now, they (airlines) are simply extending the ticket,” he said.
‘Travel agents also need credit facility’
The bench asked Mehta to also consider the concerns raised by travel agents. Justice Kaul said travel agents are often not paid in full for the tickets booked by customers. “For the benefit of the agents there needs to be some credit facility,” he said.
Gokhale, lawyer for the association of travel agents, told ThePrint that their petition has highlighted the procedure followed to pay airlines in advance.
“Money is deposited in advance to the companies through IATA. Deductions are made from this amount as and when tickets are booked. None of the airlines have returned our advance amounts,” she said.
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Hello I am Mushtaq Ahmed bhat.i need my many refund..my booking was cancel during the lockdown..spice jet..