0.5% interest likely on delayed  air  ticket  refunds

The central government on Wednesday suggested airlines pay customers a monthly interest of 0.5% for delay in refunding the booking amount for cancelled air tickets, a proposal resisted by airlines.

Airlines cancelled thousands of tickets during the Covid-19 lockdown and kept the money in so-called credit shells.

Vistara and AirAsia opposed the government’s proposal, made during a Supreme Court hearing in a plea seeking a full refund, saying most customers prefer credit shells. IndiGo said it has fully refunded the booking amount. GoAir pleaded that many airlines are on the brink of collapse and may shut if the situation doesn’t improve.