Lok Sabha Question No. 675 (UNSTARRED), answered on 2021-02-04
Subject: Refund of Air Ticket
Ministry: CIVIL AVIATION
Asked by: Pradeep Kumar Singh, Ravneet Singh, T. R. Paarivendhar, Sunil Kumar Singh, A. Ganeshamurthi

## GOVERNMENT OF INDIA MINISTRY OF CIVIL AVIATION LOK SABHA

UNSTARRED NO. 675 (To be answered on the February 2021)

## REFUND OF AIR TICKET

675. SHRI PRADEEP KUMAR SINGH SHRI RA VNEET SINGH BITTU SHRI T.R PAARIVENDHAR SHRI SUNIL KUMAR SINGH SHRI A.: GANESHAMURTHI

Will the Minister of CIVIL AVIATION

be pleased to state:"

- (a) whcther many airlines including Air India have increased air fare many fold to various destinations during Covid-i9 pandemic period;
- (c) the numher of complaints received in this regard during the last one year;
- (b) whether air commuters are facing the problem 0f delayed refund on flights which have been cancelled mainly due to Covid-l9 pandemic, especially for Air India flights and if so, the details thereof;
- (d) whether the Government is taking any steps to ensure time-bound refund of air tickets on flight cancellations especially by Air India;
- the rate of interest on the amount refundable by Air India?
- (e) if so, the details thereof and if not; the reasons therefor; and

## ANSWER

Minister of State (IC) in the Ministry of CIVIL AVIATION

(Shri Hardeep Singh Puri)

(a); Due to Covid-l9\_ the operations of all scheduled international commercial passenger flights to/from India and scheduled domestic flights (except all cargo flights) were suspended with effect from 22.03.2020 and 25.03.2020 respectively: The scheduled domestic operations were recommenced with effect from 25.05.2020 in a calibrated manner with fare capping to ensure that the airlines do not charge excessive fare and journey is performed for essential purposes. Due to capping on fare, there is no increase in air fare in domestic operations.

The scheduled international commercial passenger operations are presently suspended upto 28.02.2021 and flights on international sector are presently operating only under Vande Bharat Mission (VBM) and Air Transportation Bubble arrangements. Although, the fares of  flights operated under the Vande Bharat Mission were higher, however; these cannot be compared with fares of scheduled operations on the same route. The reasons for higher fares 0n flights operated during VBM interlia include:

- i. One way traffic due to visalentry restrictions;
- iii. Additional cost due t0 extra-precautions taken in view of operating under COVID conditions for both Crew and Passengers;
3. ji. of the points where Air India is operating VBM flights are not regular online points, hence; Air India had short-term contracts for handling Of flights at those stations, which are generally higher priced than normal contracts; Many
- iv. Turnaround time was more at many places due to restrictions On crewlpilots;
5. vi: VBM fares are all one-way fares, which are generally higher than RT (Return Fares), which have & discounting factor of variable percentages;and
- V. Additional seat blocks for extra set of crew due to no layover at the destination stations;
- vii. The COVID situation added to the cost of operation towards PPE kits, new guidelines for ground handling; sanitizers ete.
8. Further, with the establishment of air bubble arrangements with various countries, the fares have come down.
9. (b) and (c): Due to complete stoppage of flights during lockdown followed by gradual restoration 0f flights in domestic and international sector; the revenue streams 0f the airlines including Air India were severely impacted resulting in delays in refunds Air India instead of processing automatic refunds in Global Sales Distribution; processed refunds only through Air India '$ own offices within preassigned buageted amount: Air India received about 5211 complaints for refunds during the last one year and has refunded an amount 0f about Rs 220 crore in the Indian market till 24.01.2021. period
10. (d) to (: The Directorate General of Civil Aviation (DGCA) has issued a circular dated 07.10.2020 addressed to all scheduled Indian airlines and scheduled international airlines operating in respect 0f refunds on cancellation of air tickets during COVID lockdown; as per directions issued by Hon'ble Supreme Court 0f India in the judgement passed in the matters concerning Pravasi Legal Cell and ors Vs Union 0f India and ors in Writ Petition (WP) (C) D No. 10966 of 2020 with WP (C) No. 570 of 2020, WP(C) No. 595 of 2020 and WP No. 952 of 2020 on 01.10.2020\_ The refund on cancellation 0f Air tickets during COVID-19 lockdown including any incentives to compensate the passengers is governed by the aforementioned DGCA circular. -19